Weekly M&A Digest
A curated selection of transactions and deals from the past week.
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Deal Summary
Oxford Industries to acquire Johnny Was
Oxford Industries, Inc. (NYSE: OXM), a leader in the apparel industry, owns and markets the distinctive Tommy Bahama, Lilly Pulitzer, Johnny Was, Southern Tide, The Beaufort Bonnet Company, and Duck Head lifestyle brands, announced the acquisition of Johnny Was, a California-based affordable luxury, modern bohemian lifestyle apparel brand, for $270 million.
"Since 1987, Johnny Was has been inspired by a free-spirited signature aesthetic that embraces a quintessential California lifestyle. With its beautifully crafted clothing and one-of-a-kind accessories, Johnny Was continues to transcend fashion trends. Rob Trauber and the team at Johnny Was have done a spectacular job of leveraging its brand point of view and exceptional, differentiated product to build Johnny Was into a powerful, omnichannel brand with an incredibly loyal customer following. The addition of the Johnny Was brand to the Oxford portfolio further diversifies our business across fashion points of view, price points, seasons and geographies. We are excited to partner with the brand's strong management team to drive the business forward and welcome them to the Oxford family." - Tom Chubb, Chairman and CEO of Oxford Industries.
H&E Equipment Services to acquire One Source Equipment Rentals
H&E Equipment Services, Inc., one of the largest integrated equipment companies in the nation providing a high standard in equipment rentals, sales, parts, and service, announced the acquisition of One Source Equipment Rentals, Inc., a provider of non-residential construction and industrial equipment with operations in the Midwest and Southern U.S., for $130 million.
"For more than 20 years, One Source has emphasized a culture where equipment reliability and customer support and satisfaction are vital features for success, resulting in an equipment rental operation with strong consumer loyalty throughout its branch network. These important attributes, which are underscored by a dedicated base of employee owners, offer an exceptional cultural fit with H&E. Also, the transaction will expand our geographic footprint into the Midwest with operations in Illinois and Indiana, as well as operations in Kentucky. Finally, the demonstrated success of our accelerated warm start plan, with 15 warm start and greenfield locations established since early 2021, will prove beneficial as we evaluate post-integration growth opportunities in the Midwest and other surrounding regions with attractive prospects for expansion." - Brad Barber, CEO of H&E Equipment Services.
Core & Main to acquire Distributors
Core & Main, Inc. (NYSE: CNM), a specialized distributor of water, wastewater, storm drainage, fire protection products, and related services, announced the acquisition of the assets of Distributors, Inc., a full-service distributor of fire protection products based in Hawaii.
"By consistently meeting and exceeding customer expectations, Distributors, Inc. has established itself as a leader in fire protection services in Hawaii. The extensive knowledge and experience of our combined resources strengthen this position, and this strategic acquisition enables us to continue adding value to their customers," - Steve LeClair, CEO of Core & Main.
Corteva to acquire Symborg
Corteva, Inc. (NYSE: CTVA), a global pure-play agriculture company, announced the acquisition of Symborg, an expert in microbiological technologies based in Murcia, Spain. This transaction continues Corteva's commitment to building a more differentiated and sustainably advantaged portfolio that provides cost-effective solutions for farmers.
"Acquiring Symborg is a significant next step in Corteva's strategy to accelerate the development of a best-in-class biologicals portfolio, as a valuable part of our integrated solutions we offer to our customers…Over the past three years, Corteva has established licensing and distribution agreements with the top biological companies, which we selected after evaluating technologies and demonstrating customer acceptance. This acquisition shows Corteva's progression towards further establishing itself as a technology leader in this rapid growth segment." - Robert King, Executive Vice President of Crop Protection Business Unit, Corteva Agriscience.
IBM to acquire Dialexa
IBM (NYSE: IBM), a provider of global hybrid cloud and AI, and consulting expertise announced the acquisition of Dialexa, a leading U.S. digital product engineering services firm. The acquisition is expected to deepen IBM's product engineering expertise and provide end-to-end digital transformation services for clients.
"In this digital era, clients are looking for the right mix of high-quality products to build new revenue streams and improve topline growth…Dialexa's product engineering expertise, combined with IBM's hybrid cloud and business transformation offerings, will help our clients turn concepts into differentiated product portfolios that accelerate growth." - John Granger, Senior Vice President of IBM Consulting.
The transaction is expected to close during the fourth quarter of 2022, subject to customary closing conditions and regulatory approvals.
SOURCES
Oxford Industries Press Release:
https://investor.oxfordinc.com/news-releases/news-release-details/oxford-industries-owner-tommy-bahama-and-lilly-pulitzer
H&E Equipment Services Release:
https://investor.he-equipment.com/news-releases/news-release-details/he-equipment-services-signs-definitive-agreement-acquire-one
Core & Main Press Release:
https://coreandmain.com/news/core-and-main-signs-agreement-to-acquire-distributors-inc/
Corteva Press Release:
https://www.corteva.com/resources/media-center/corteva-agriscience-signs-agreement-to-acquire-biological-leader-symborg.html
IBM Press Release:
https://newsroom.ibm.com/2022-09-22-IBM-Acquires-Dialexa-to-Speed-Digital-Innovation