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Michael Poole

E: mpoole@pcecompanies.com

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Industry Trends

Supreme Court Ruling Reigns in EPA Regulations

On June 30, the Supreme Court ruled that the EPA exceeded its authority when regulating carbon emissions from coal power plants, a regulation introduced as a part of the Obama administration's Clean Power Plan in 2015. The decision will hinder the EPA's ability to enforce regulations that have broad social and economic impacts without congressional approval. While the powers of other executive agencies will also be affected, the decision will require environmental regulations imposed by the EPA to face more scrutiny in the future.1

U.S. Gas Prices Reach $5 Average for the First Time

Average U.S. gas prices reached a record of $5.11 in June 2022 as fuel costs continue to strain U.S. companies and consumers. Prices have relaxed in the last two weeks of the second quarter, averaging $4.98 per gallon at the end of June. Gas prices have increased by 57.9% year-over-year from $3.15 in June 2021. Analysts estimate prices could average $6.20 per gallon by August.2 3

Mining Companies Worried Despite High Metal Prices

Copper and iron ore prices have increased by over 40% in the last two years, but mining companies show no signs of increasing production. Project spending by the ten largest mining companies is expected to remain at $40 billion annually in 2022 and 2023, roughly half of 2012. The decision by major mining companies follows pressure from investors to prioritize dividends and buybacks due to fears of new environmental legislation limiting the sector's production and profitability.4

CECO Environmental Corp. acquires Western Air Ducts Ltd.

In June, CECO Environmental Corp. (CECO) completed its acquisition of Western Air Ducts Ltd. CECO is a leading diversified industrial company providing engineering and industrial process solutions. Western air is a global firm providing industrial air filtration and extraction solutions. CECO plans to integrate Western Air and its air control system brand into the company's industrial air platform. The acquisition will expand CECO's product line and allow them to address an additional $150 million in the industrial air market.5

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • SPX FLOW, Inc.
  • Lone Star Americas Acquisitions, Inc.
  • $4,111.50
  • C.H.I. Overhead Doors, Inc.
  • Nucor Corporation
  • $3,000.00
  • US Ecology, Inc.
  • Republic Services, Inc.
  • $2,329.87
  • Scholle IPN Corporation
  • SIG Group AG
  • $1,846.03
  • Sempra Infrastructure Partners, LP
  • Black River B 2017 Inc.
  • $1,730.00
  • Lawson Products, Inc.
  • Distribution Solutions Group, Inc.
  • $580.68
  • Wenger Manufacturing, Inc.
  • Marel hf.
  • $530.53
  • Fuel Transfer Business Assets of Tuthill Corporation, Including the Fill-Rite and Sotera Brands
  • The Gorman-Rupp Company
  • $525.00
  • PetroChoice Holdings, Inc.
  • Moove Lubricants Limited
  • $479.00
  • Huttig Building Products, Inc.
  • Woodgrain Inc.
  • $403.33

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • 80,800 Acres of Timberlands in North and South Carolina
  • Weyerhaeuser Company
  • $265.00
  • Novex Inc.
  • LFM Capital, LLC
  • n/a
  • KKSP Precision Machining, LLC
  • Pine Grove Holdings, LLC
  • n/a
  • Double E Company LLC
  • Industrial Growth Partners
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Salford Group, Inc.
  • MacDon Industries Ltd.
  • $202.47
  • Cloverdale Equipment Co.
  • Herc Holdings Inc.
  • $175.00
  • Century Gaming, Inc.
  • Accel Entertainment, Inc.
  • $164.20
  • Panel Truss Texas, Inc.
  • Builders FirstSource, Inc.
  • $150.00
  • Bio Lab Naturals, Inc.
  • Limitless X Holdings Inc.
  • $135.68
  • Scientific Design Company, Inc.
  • Saudi Basic Industries Corporation
  • $130.00
  • Flexible Packaging Joint Venture of Greif, Inc.
  • Gulf Refined Packaging
  • $123.00
  • Certain Assets of Plateplus, Inc.
  • Friedman Industries, Incorporated
  • $68.58
  • Cisco Air Systems, Inc.
  • DXP Enterprises, Inc.
  • $45.00
  • Chromatography Research Supplies, Inc.
  • Trajan Group Holdings Limited
  • $43.30
  • CCOM Group, Inc.
  • Daikin Comfort Technologies North America, Inc.
  • $34.79

 

Source S&P Capital IQ as of 7/11/2022 and PCE Proprietary Data

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PCE Transactions

Contacts

Michael Poole

Orlando Office

407-621-2112 |

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Michael Rosendahl

New York Office

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Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. Wolfe, Jan "Supreme Court Puts Brakes on EPA in Far-Reaching Decision" WSJ, 30 June 2022.
  2. Abdel-Baqui, Omar "Gasoline Prices Reach $5 a Gallon Nationwide for the First Time" WSJ, 11 June, 2022.
  3. "US Retail Gas Price", Y Charts, 27 June, 2022.
  4. Ramkumar, Amrith "Mining Firms’ Cautious Spending Threatens Shift to Green Energy" WSJ, 19 June, 2022.
  5. "CECO Environmental Expands Industrial Air Offering with UK-Based Acquisition", Markets Insider, 27 June 2022.
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