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Mike Rosendahl

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Industry Trends

UAW Strike Ends in November

In November, the UAW successfully negotiated new contracts with the Big Three auto manufacturers through April 2028. The agreements secure an immediate 11% wage hike for union employees, with a cumulative 25% increase over the 4.5-year duration. The new contracts reintroduce cost-of-living adjustments, accelerate maximum wages, and protect workers’ strike rights. GM has indicated the new agreement could increase costs by $9.3 billion over the length of the agreement, while Ford estimates cost increases of approximately $8.8 billion.1

U.S. Manufacturing PMI Contracts for 14th Straight Month

The S&P Global PMI for U.S Manufacturing closed December 2023 at 47.4, marking the 14th straight month of contraction for the sector. This was a marginal improvement over November’s46.7 reading indicating a slight recovery to end the year. Declines in output, orders, and employment all contributed to the contraction, although there was an improvement in vendor performance. Looking ahead, 2024 may bring some optimism with the Federal Reserve’s anticipated relaxation of rate hikes in the coming year.2 3

Oil Prices Decline 17.4% in Last Three Months of 2023

Oil prices finished lower in December 2023, amid geopolitical turmoil and concerns about major producers' output levels. Since September, brent crude declined 17.4% to $77.04/barrel on the last trading day of the year. OPEC+ faces challenges in committing to supply cuts, and Middle East tensions, exemplified by Red Sea disruptions and Gaza attacks, contribute to ongoing volatility despite a 3.4% rise in U.S. oil demand in October. Analysts currently predict an average of $82.56 for Brent in 2024.4 5

Masonite International Completes $3 Billion Landmark Deal

Masonite International Corp. (NYSE: DOOR) finalized the acquisition of PGT Innovations for $3 billion, significantly broadening its product portfolio and market footprint. This strategic move combines Masonite's proficiency in manufacturing interior and exterior doors with PGT's focus on windows and patio doors. This acquisition is set to enhance their product lineup, expand their geographical reach, and amplify growth opportunities, It also offers thethe potential for cross-selling and enhanced operational efficiency.6

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Westinghouse Electric Company LLC
  • Brookfield Corporation; Cameco Corporation; Brookfield Renewable Partners L.P.
  • $8,300.00
  • Veritiv Corporation
  • Clayton, Dubilier & Rice, LLC
  • $2,940.00
  • CIRCOR International, Inc.
  • KKR & Co. Inc.
  • $1,722.00
  • Engineered Papers Business of Mativ Holdings, Inc.
  • Evergreen Hill Enterprise Pte. Ltd.
  • $620.00
  • Carlisle Fluid Technologies, LLC
  • Lone Star Americas Acquisitions, Inc.
  • $520.00
  • Roofing Corp. of America, Inc.
  • FirstService Corporation
  • $413.00
  • Bradley Corporation
  • Watts Regulator Company
  • $303.00
  • Fleetwood Aluminum Products, Inc.
  • Masonite Corporation
  • $285.00
  • Memphis Stone & Gravel Company/Lehman-Roberts Company
  • Granite Construction Incorporated
  • $287.00
  • Brockway-Smith Company
  • Boise Cascade Building Materials Distribution, LLC
  • $172.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • P&F Industries, Inc.
  • ShoreView Industries
  • $50.00
  • Noland's Roofing Inc.
    International Corporation
  • Dunes Point Capital, L.P.
  • n/a
  • Measurement Control Systems, Inc.
  • Pearl Street Capital Partners
  • n/a
  • Penhall Company, Inc.
  • H.I.G. Capital, LLC
  • n/a
  • Salt River Aviation, LLC
  • Weinberg Capital Group
  • n/a
  • Lipp America Tank Systems, LLC/Hamlett Engineering Sales Company
  • Brixey & Meyer Capital
  • n/a
  • Outsource Utility Contractor, LLC
  • Jumana Capital
  • n/a
  • S&N Communications Inc.
  • Tower Arch Capital, L.P.
  • n/a
  • Trelltex, Inc.
  • Harbour Group Industries, Inc.
  • n/a
  • Power Grid Components, Inc.
  • Blackstone Inc.
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Rudd Equipment Company, Inc.
  • Ferronordic AB
  • $113.00
  • American Fan business of Chart Industries, Inc.
  • Fairbanks Morse Defense
  • $111.00
  • Mountz, Inc.
  • Snap-on Incorporated
  • $40.00
  • Royal Truck and Equipment, Inc.
  • Alamo Industrial, Inc.
  • $28.00
  • California Manufacturing & Engineering Co., LLC.
  • Zhejiang Dingli Machinery Co.,Ltd
  • $23.00
  • Rosewood Communities, Inc.
  • United Homes Group, Inc.
  • $23.00
  • Industrial Air, LLC
  • Limbach Holdings, Inc. 
  • $20.00
  • Charlotte-Rock Hill Area assets of Reeves Construction Co., Inc.
  • Construction Partners, Inc.
  • $16.00
  • Assets of Burris Equipment Company
  • Alta Equipment Group Inc. 
  • $15.00
  • Dennis Corporation
  • Bowman Consulting Group Ltd.
  • $4.00
  • All Assets of Big Lake Lumber, Inc.
  • Glenbrook Building Supply, Inc.
  • $3.00

 

Source S&P Capital IQ as of 1/16/2024 and PCE Proprietary Data

PCE Transactions

Contacts

Michael Rosendahl

New York Office

201-444-6280 Ext 1 |

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Ken Sommers

Denver Office

303-276-7985 |

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Michael Poole

Orlando Office

407-621-2112 |

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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. 1. Stevens T. “UAW Ratifies New Contracts, with New-Car Prices Predicted to Rise” Car and Driver, 22 Nov 2023.
  2. 2. Charts, Y. “US ISM Manufacturing PMI.” MSN, Dec 2023.
  3. 3. Hyatt, Diccon. “Manufacturing Slowed in December, Capping Off a ‘Lousy’ Year’.” MSN, 4 Jan. 2024.
  4. 4. "Brent Crude Oil", Trading economics, Dec 2023.
  5. 5. Rosen, Phil. "Gas prices are surging right before 115 million Americans set out on holiday road trips." Insider, Dec 2023.
  6. 6. Cavanagh, Cassidy. “Masonite Acquires PGT Innovations” Mergers & Acquisitions, 18 Dec 2023.
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