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Diversified Industrials M&A Trends: Winter 2023

Published November 17, 2022

Home > M&A Trends > Diversified Industrials M&A Trends: Winter 2023

KEY INSIGHTS

  • Supply chains receive relief, while production costs are still on the rise.
  • Overall M&A activity in the industrial sector has remained strong in H1 22 with average quarterly transaction volume in line with the historical average over the past three and a half years.
  • Labor costs continue to rise amidst a historically tight job market.
  • Security services growth trends.

The Fire & Life Safety (“F&LS”) and Security Services sectors have continued to see M&A and consolidation activity in 2022. Recession resiliency and the recurring nature of these sectors’ revenue represent attractive investments for financial investors. The global Security Services market is projected to grow at a CAGR of 3.6% between 2022 and 2024 with the global market expected to reach $220B by 2024. The continuous growth of the market has been driven by a pandemic fueled acceleration of property crime and security surveillance spending, systems integration, and market competition for service competencies as companies work to respond to an evolving social environment. With valuation multiples in the sector continuing to show strength, 2021 and 2022 has seen some of the largest private equity platforms in fire & life safety and security services change ownership.

View the Report

Diversified Industrials Market Insight

Supply Chains Receive Relief, While Production Costs Are Still On The Rise

  • Supply chains for goods are receiving some relief due to softening global demand. Ocean freight rates have begun to ease and are expected to continue to decline through the end of the year and into 2023.1 
  • Companies are reshoring production to improve transportation and logistics costs and lead times. According to a Thomasnet survey, 83% of North American manufacturers surveyed are likely to reshore some level of production. 
  • Labor costs continue to rise amidst a historically tight job market. In October, the Bureau of Labor Statistics reported that compensation costs for private industry workers increased 5.2% over the 12-month period ending Sept-22. Industrials firms’ employment has continued to trend upwards, with the manufacturing sector adding 22,000 jobs in September, led by durable goods.
  • Raw materials and input costs also continue to put additional pressure on the industry. The Manufacturing Producer Price Index grew at an annual rate of 13.6% as of September 2022.

Industrial Production Index

Producer Price Index – Manufacturing

Diversified Industrial M&A Commentary

  • Overall M&A activity in the industrial sector has remained strong in H1-22 with average quarterly transaction volume in line with the historical average over the past three and a half years.
  • The industrial services sector has become increasingly active for M&A since 2019, accounting for 25% of overall diversified industrials2 deal activity so far in 2022, as compared to 16% in H1-19. Strong demand and recurring customer dynamics have made industrial service companies attractive investment opportunities for private equity firms with many looking to execute on roll-up strategies in verticals including landscape management, fire and life safety, commercial kitchen services, and HVAC services, among others.
  • The industrial automation and technology sector has also experienced an uptick in M&A as the sector has benefited from the accelerated movement to automation as a result of ongoing tight labor market and rising wages. Since Q4-20, the sector has averaged over 70 transactions per quarter compared to ~48 per quarter from Q4-19 through Q3-20.
  • Sectors more impacted by macroeconomic factors have experienced a slowdown in M&A activity as strategic buyers have turned their focus internally and private equity has looked to more insulated assets to deploy capital.

Sources: Company press releases, company websites, Pitchbook, Mergermarket, Meridian research, St. Louis Federal Reserve, PWC, The POWERS Company, Deloitte, EY, Bain & Company, IBIS World, U.S. Bureau of Labor Statistics, Thomasnet 
Footnote 1: The Wall Street Journal. Footnote 2: Diversified Industrial Sector as tracked by Meridian Capital

Diversified Industrials Middle Market M&A Activity

Diversified Industrials M&A Activity

Public Market Valuations (EV/EBITDA)

Recent Transaction Case Studies

Description:
TEK Express is a provider of repair services, preventative maintenance and installation for commercial cooking and refrigeration equipment.

Rationale:
The acquisition will allow Tech24 to enter the New York City market and extend services to a broader set of customers. This represents the 14th acquisition for Tech24 under HCI ownership.

Description:
Provider of commercial refrigeration, lighting, and misting system installation and maintenance services across Washington state.

Rationale: 
Arcticom was acquired by Ares at the start of 2022, and has since completed three acquisitions as it looks to expand its service offerings and geographic coverage.

Description:
Turf Masters Lawn Care Services provides recurring lawn, tree, and shrub care services to over 100,000 customers annually.

Rationale:
Turf Masters was created via the combination of three lawn care services businesses by Center Oak Partners. The Company plans to fuel growth through organic strategic initiatives and add-on acquisitions.

Description: 
Smart Care Equipment solutions is a leading provider of maintenance services for commercial kitchen equipment.

Rationale:
The acquisition will allow both businesses to focus on growth through new and existing customers, expansion of geographic reach, and executing strategic acquisitions. 

Sources: Company press releases, company websites, Pitchbook, Mergermarket, Meridian research 

Industry Spotlight – Security Services

Security Services Growth Trends

The Fire & Life Safety (“F&LS”) and Security Services sectors have continued to see M&A and consolidation activity in 2022. Recession resiliency and the recurring nature of these sectors’ revenue represent attractive investments for financial investors.

The global Security Services market is projected to grow at a CAGR of 3.6% between 2022 and 2024 with the global market expected to reach $220B by 2024. The continuous growth of the market has been driven by a pandemic-fueled acceleration of property crime and security surveillance spending,  systems integration, and  market competition for service competencies as companies work to respond to an evolving social environment.

Sector Market Performance
  • With valuation multiples in the sector continuing to show strength, 2021 and 2022 has seen some of the largest private equity platforms in fire & life safety and security services change ownership. Fresh ownership in the sector is expected to bolster consolidation activity as private equity firms look to complete add-on acquisitions to average down their buy-in multiples.
    • Recently acquired PE platforms include Endeavor Fire Protection acquired by Building Industry Partners (Aug 2022), Summit Companies acquired by Blackrock (Jan 2022), Altus Fire and Life Safety acquired by AE Industrial Partners (May 2021) and Sciences Building Solutions acquired by The Carlyle Group (December 2021). 
  • Hybrid work environments have created opportunity for the commercial services sector due to more volatile occupation levels. Security integrators are seeing strong interest for incremental access control, video security, and other building automation products and services. 
  • Commercial security businesses are seeing higher valuations and deal volume relative to the more consolidated residential security sector. Investors are seeking opportunities to expand services and align cyber and physical security with new platforms. As of October 2022, there were 28 security solutions M&A deals, compared to 15 over the same period in 2021.

Notable Transactions

Sources: Company press releases, company websites, Pitchbook, Mergermarket, Meridian research

CM Heating Acquired by Air Pros USA

In August 2022, Meridian Capital LLC (“Meridian”), a Seattle-based leading middle market investment bank and M&A advisory firm assisted its client, CM Heating Inc. (“CM” or the “Company”), in its successful sale to Air Pros USA (“Air Pros”). 

Founded in 1983 and headquartered in Everett, Washington, CM Heating is a top-rated HVAC services provider in Washington, providing installation, maintenance, and repair services across Snohomish, Skagit, and King Counties. The Company has proudly built an established customer base of over 25,000+ residential customers and prides itself in providing the best quality service, top-rated products, and comprehensive HVAC expertise. 

CM Heating will continue to further grow and operate under its recognized brand and reputation in Washington State while leveraging Air Pros’ operational and sales resources to accelerate growth. CM customers will continue to receive best-in-class HVAC services throughout the North Puget Sound. Co-owners John and James will remain as leaders of the business. 

James Garner, President and Co-owner of CM, shared, “The partnership with Air Pros is an exciting next step for CM’s continued growth, allows us to further our growth opportunities, and continue to do right by our customers and employees.” 

“Our customers trust us with their homes and comfort, so finding the right culture fit in a partner was a critical element for us,” said John Giacomi, Co-owner and General Manager of CM Heating. “We had a number of different choices of strategic partners, and we felt Air Pros will be able to best support our customers and our people.”

James and John commented, “As a multi-generational business that puts its people first, it was of utmost importance to find a partner that not only maintains and aligns with our culture, but also brings resources to accelerate growth. Meridian did an exceptional job identifying potential partners that were strongly aligned with CM’s culture and strategy, and ultimately helping us navigate a transaction with Air Pros that achieved all of our objectives.” 

James Rothenberger, Managing Director at Meridian stated, “James, John, and the management team at CM Heating have built an incredible company that is the leading brand and provider north of Seattle. As part of the Air Pros platform, CM Heating will continue its strategic growth plans for many years to come. We are excited for what the future holds for CM Heating and Air Pros. Overall, HVAC M&A volume continues to be quite robust for providers of any scale; for those of scale, like CM, the valuation multiples and activity are attractive.”

Public Diversified Industrials Trading Metrics

Industrial Services

Company NameMarket
Cap
EVLTM
Rev
LTM
EBITDA
EV/LTM
Rev
EV/LTM
EBITDA
LTM Margin
EBITDA
52-Week
Change
WM Intellectual Property Holdings (NYS: WM)$64,921$78,849$19,441$5,2724.1x15.0x27%-3%
Cintas Corporation, Inc. (NAS: CTAS)$45,072$48,167$8,124$2,0355.9x23.7x25%1%
Quanta Services, Inc. (NYS: PWR)$20,645$24,597$16,581$1,3701.5x18.0x8%22%
Comfort Systems USA, Inc. (NYS: FIX)$4,348$4,772$3,879$3061.2x15.6x8%21%
ABM Industries, Inc. (NYS: ABM)$2,964$4,227$7,491$4340.6x9.7x6%-8%
NV5 Global, Inc (NAS: NVEE)$2,296$2,337$786$1193.0x19.6x15%35%
Median$12,496$14,684$7,808$9022.2x16.8x12%11%
Average$23,374$27,158$9,384$1,5892.7x16.9x15%11%
($US in millions)

Industrial Distribution

Company NameMarket
Cap
EVLTM
Rev
LTM
EBITDA
EV/LTM
Rev
EV/LTM
EBITDA
LTM Margin
EBITDA
52-Week
Change
Fastenal Company (NAS:FAST)$29,669$30,246$6,817$1,5974.4x18.9x23%-15%
W.W. Grainger, Inc. (NYS: GWW)$29,636$32,257$14,785$2,3212.2x13.9x16%21%
J.B. Hunt Transport, Inc. (NAS:JBHT)$19,196$20,355$14,661$1,9861.4x10.2x14%-7%
WESCO International, Inc. (NYS: WCC)$6,718$12,196$20,714$1,5020.6x8.1x7%-4%
MSC Industrial Direct Co., Inc. (NYS: MSM)$4,758$5,587$3,692$5391.5x10.4x15%0%
XPO Logistics, Inc. (NYS: XPO)$4,542$7,722$13,108$1,7140.6x4.5x13%-15%
DNOW L.P. (NYS:DNOW)$1,416$1,174$2,021$1390.6x8.4x7%30%
MRC Global, Inc. (NYS: MRC)$967$1,845$3,180$1360.6x13.6x4%38%
Median$5,738$9,959$9,962$1,5501.0x10.3x13%-2%
Average$12,113$13,923$9,872$1,2421.5x11.0x12%6%
($US in millions)

Precision Manufacturing

Company NameMarket
Cap
EVLTM
Rev
LTM
EBITDA
EV/LTM
Rev
EV/LTM
EBITDA
LTM Margin
EBITDA
52-Week
Change
Stryker Corporation (NYS: SYK)$84,878$96,140$17,948$3,6625.4x26.3x20%-14%
Illinois Tool Works (NYS: ITW)$69,556$76,411$15,640$4,1124.9x18.6x26%-5%
Emerson Electric Co. (NYS: EMR)$56,434$70,956$19,216$5,1593.7x13.8x27%-1%
Parker-Hannifin Corporation (NYS: PH)$39,622$53,075$16,332$2,4393.2x21.8x15%-6%
Ingersoll Rand (NYSE: IR)$22,396$23,792$5,711$1,1494.2x20.7x20%-6%
Berry Global (NYSE: BERY)$6,806$7,929$3,340$6102.4x13.0x18%-21%
AptarGroup (NYSE: ATR)$6,514$15,922$14,743$2,0341.1x7.8x14%-24%
Gibraltar Industries (NASDAQ: ROCK)$2,523$3,298$1,341$3582.5x9.2x27%11%
EnPro Industries (NYS: NPO)$1,627$1,745$1,411$1491.2x11.7x11%-29%
NN (NASDAQ: NNBR)$85$348$491$370.7x9.4x8%-66%
Median$14,601$19,857$10,227$1,5922.9x13.4x19%-10%
Average$29,044$34,962$9,617$1,9712.9x15.2x19%-16%
($US in millions)

Industrial Technology

Company NameMarket
Cap
EVLTM
Rev
LTM
EBITDA
EV/LTM
Rev
EV/LTM
EBITDA
LTM Margin
EBITDA
52-Week
Change
Danaher Corp (NYSE:DHR)$197,278$213,051$31,250$10,6186.8x20.1x34%-10%
Siemens AG (ETR: SIE)$100,253$139,214$77,535$8,6621.8x16.1x11%-27%
ABB Asea Brown Boveri (NYS: ABB)$64,268$73,240$20,166$3,7713.6x19.4x19%-6%
Eaton Corporation PLC (NYS: ETN)$57,656$63,398$29,189$6,0962.2x10.4x21%-5%
Roper Technologies (NYSE: ROP)$46,489$51,254$6,142$2,2498.3x22.8x37%-10%
AMETEK (NYS: AME)$31,888$33,935$6,029$1,7795.6x19.1x30%-1%
Teledyne Technologies (NYS: TDY)$19,357$22,934$5,416$1,3164.2x17.4x24%-7%
Median$57,656$63,398$20,166$3,7714.2x19.1x24%-7%
Average$73,884$85,289$25,104$4,9274.7x17.9x25%-9%
($US in millions)

Industrial Automation

Company NameMarket
Cap
EVLTM
Rev
LTM
EBITDA
EV/LTM
Rev
EV/LTM
EBITDA
LTM Margin
EBITDA
52-Week
Change
Industrial Automation
Honeywell International (NAS:HON)$143,023$152,673$34,937$8,4194.4x18.1x24%-4%
Schneider Electric SE (PAR:SU)$78,746$92,304$35,145$6,6152.6x14.0x19%-19%
Rockwell Automation (NYS:ROK)$31,413$35,397$7,760$1,4314.6x24.7x18%-18%
Mitsubishi Electric Corporation (TKS:6503)$20,233$18,462$37,596$3,4280.5x5.4x9%-29%
Teradyne (NAS:TER)$15,001$14,359$3,308$1,0154.3x14.1x31%-35%
Omron Corporation (TKS:6645)$10,385$9,770$6,468$8151.5x12.0x13%-48%
Applied Industrial Technologies (NYS:AIT)$4,892$5,394$3,981$4401.4x12.3x11%21%
Median$20,233$18,462$7,760$1,4312.6x14.0x18%-19%
Average$43,385$46,908$18,457$3,1662.8x14.4x18%-19%
($US in millions)

Select Diversified Industrials M&A Transactions

Industrial Services

DateTargetBuyerDescription
Oct-22Mercurio’sTurnPoint ServicesProvider of air conditioning, heating, and cooling services
Oct-22Toscalito Tire and AutomotiveSunAuto Tire & ServiceProvider of automotive repair and maintenance services
Oct-22Survivor Fire & SafetyPye Barker Fire SafetyProvider of fire and life safety services and equipment
Oct-22Great Lakes CleaningNew Image Building ServicesProvider of commercial cleaning services
Oct-22H2O EngineeringNewterraProvider of water treatment services
Oct-22Coyne Pest ControlBug Busters USAProvider of pest control services
Oct-22Central Cariboo DisposalEnvironmental 360 SolutionsProvider of waste and recycling services
Sep-22Blanton and AssociatesICF InternationalProvider of a broad range of environmental consulting, planning, and project management services
Sep-22Greenridge LandscapeJuniper LandscapeProvider of landscape management services
Sep-22Rays Trash ServiceWaste ManagementProvider of waste and recycling services
Sep-22LS SystemsSciens Building SolutionsProvider of fire, life safety, and security services
Aug-22Northwest PolymersAtkore InternationalProvider of plastic recycling services
Aug-22Bem SystemsBernhard Capital PartnersProvider of environmental engineering consulting services
Aug-22Pueblo Mechanical & ControlsOMERS Private EquityProvider of heating, ventilation, and air conditioning (HVAC), plumbing, and controls repair services
Aug-22Valley Fire Protection SystemsBuilding Industry PartnersProvider of fire protection systems’ repairs and maintenance services
Aug-22Water MetricsPerformance Systems IntegrationProvider of residential/commercial backflow and gauge services
Aug-22Hired Killers Pest ControlRockit PestProvider of pest control services
Aug-22Water Metrics WestPerformance System IntegratorsProvider of fire system equipment and services
Aug-22C. M. HeatingAir ProsProvider of installation, maintenance, and repair HVAC services
Aug-22Bug House Pest ControlRollinsProvider of pest control
Aug-22ExperiGreen Lawn CareHuron CapitalProvider of lawn care services
Aug-22Solutions ManagementTrueSourceProvider of facilities maintenance services
Aug-22Patriot Environmental ServicesHeritage-Crystal CleanProvider of hazardous waste management and industrial cleaning services
Jul-22Summit Service GroupThe Facilities GroupProvider of janitorial and facility maintenance services
Jun-22BK SystemsAltus Fire and Life SafetyProvider of fire and alarm systems and services

Precision Manufacturing

DateTargetBuyerDescription
Oct-22Precision Surfacing SolutionsBison Capital Asset ManagementManufacturer of precision surfacing equipment
Oct-22Benton Steel FabricationMorton IndustriesManufacturer of steel fabrication products
Oct-22Triad ToolingStellar Industrial SupplyManufacturer of machine tool accessories
Oct-22Peltier ManufacturingPrince & IzantManufacturer of metal microstamping
Oct-22Pacific Pulp MoldingSpecialized Packaging GroupDesigner and manufacturer of molded products
Jul-22RoboVentNederman HoldingProvider of industrial ventilation and filtration systems
Jul-22Universal InstrumentsDelta International HoldingManufacturer and supplier of circuit board assembly equipment
Jul-22Ceres TechnologiesAtlas CopcoManufacturer of gas and vapor delivery equipment
Jul-22MedTorqueArch MedicalManufacturer of surgical parts and equipment
Jul-22Formtex PlasticsGood Natured ProductsManufacturer of plastic packaging products
Jul-22CoherentII-VICoherent Inc supplies photonics-based solutions
Jul-22Orange County LabelSteven LabelManufacturer and supplier of labels, specialty die-cut and adhesive products
Jul-22ElkayZurn Water SolutionsManufacturer of plumbing and cabinetry products
Jun-22Airex Allied MotionDesigner and manufacturer of precision and specialty controlled motion products
Jun-22ArtelAdvanced InstrumentsManufacturer of liquid handling, calibration and verification systems
Jun-22Scholle IPNSIG GroupDeveloper and manufacturer of packaging material and equipment
May-22Fronti FabricationsChart IndustriesProvider of engineering and fabrication services

Industrial Distribution & Logistics

DateTargetBuyerDescription
Oct-22Hodges FastenerLakeshore Fastener GroupDistributor of nuts, bolts and screws
Oct-22B&I Auto SupplyFactory Motor PartsDistributor of auto parts and accessories
Oct-22DistributorsCore & MainDistributor of fire protection products
Oct-22Mobile Janitorial & PaperImperial DadeDistributor of janitorial sanitation and food service products
Oct-22Rios ContainersInmarkDistributor of plastic and metal bottles, cans, drums, lids and other rigid packaging products
Sep-22Ironwood ElectronicsHEICODistributor of electronic connectors and custom solutions
Sep-22M&D DistributorsGridiron CapitalDistributor of aftermarket parts and components for diesel-powered engines
Sep-22Western Steel and PlumbingDakota Supply GroupDistributor and wholesaler of plumbing and HVAC products
Aug-22Buettner Brothers Lumber CompanySoutheast Building Supply InterestsManufacturer and supplier of building materials and home supplies
Aug-22Campbell Tool and Metal SupplyIndustrial Metal SupplyDistributor of metals
Aug-22Controlled Temp SupplyEd’s Supply CompanyDistributor and supplier of heating, ventilation and air conditioning parts
Aug-22MedServ PlusPrestige Medical ImagingDistributor of medical diagnostic imaging equipment
Aug-22Evron IndustriesCevin IndustriesDistributer of personal care products
Aug-22Belt PowerPlatte River EquityDistributor and fabricator of lightweight conveyor systems
Aug-22Fischer Process IndustriesTencarva MachineryDistributor of fluid handling equipment
Aug-22Alarm InstallersB Safe SecurityDistributor of residential and commercial security products
Aug-22FlotechFloworksDistributor of industrial valves and automation services
Aug-22New England Drives & ControlsShingle & Gibb AutomationDistributor of automation supplies
Aug-22Tower FastenersMSC Industrial SupplyDistributor of original equipment manufacturer (OEM) fasteners and components
Aug-22First Source ElectricalWinsupplyDistributor of electrical supplies

Industrial Technology & Automation

DateTargetBuyerDescription
Oct-22Dynamic Design SolutionsKaho PartnersDesigner of custom robotic automation systems
Oct-22RobotWorxTennessee Industrial ElectronicsDistributor of new and used industrial robots for industrial automation
Oct-22Panacea TechnologiesCXV GlobalManufacturer of automation machinery products
Sep-22Professional Control CorporationGenuine Cable GroupManufacturer and distributor of industrial automation and control products
Aug-22AGR AutomationConvergix Automation SolutionsProvider of custom automation design and systems integration
Aug-22Eclipse AutomationAccentureManufacturer of custom automated engineering equipment
Aug-22Innovative Products and EquipmentEckhartManufacturer of automated equipment
Aug-22HTSEGray Matter SystemsDeveloper of automation and machine control systems
Jul-22Telesis TechnologiesHitachi Industrial Equipment SystemsManufacturer of traceability systems and laser equipment
Jul-22Parata SystemBecton, Dickinson and CompanyDeveloper of automation technology intended for pharmacies
Jul-22Hudson RoboticsArt Robbins InstrumentsProvider of robotic automation services
Jul-22CM3 Building SolutionsDaikin AppliedProvider of building solutions intended to sustain comfortable, safe and energy-efficient environments
Jul-22The Integration Group of AmericasTetra TechProvider of systems integration and engineering services
Jun-22Double E CompanyIndustrial Growth PartnersManufacturer of advanced industrial handling components and accessories
Jun-22Select TechnologiesEVAPCOProvider of controls and automation integration services
May-22SaviokeRelay RoboticsDeveloper of autonomous robots
Mar-22Control Design and ManufacturingColumbia MachineManufacturer of factory automation systems
Mar-22Horlick CompanySJEManufacturer of custom industrial control panels and motor generator sets for industrial automation market

 

Meridian Capital's Diversified Industrials Transaction Experience

*Note: Includes transactions completed by Meridian bankers while at previous firms

Meridian Capital’s Diversified Industrials Team

Brian Murphy Photo
Brian Murphy
CEO, Managing Director
Aaron Franzheim Photo
Aaron Franzheim
Director

Diversified Industrials M&A Reports

Facility & Industrial Services M&A Market Update: Winter 2024

November 16, 2023

Diversified Industrials M&A Trends: Spring 2021

May 13, 2021

Diversified Industrials M&A Trends: Fall 2020

April 20, 2021

Diversified Industrials M&A Trends: Spring 2020

May 24, 2020

Diversified Industrials M&A Update: Fall 2018

November 27, 2018

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