M&A Deal Activity in Industrial Products Slows

May 14 - Modern Distribution Management - Weakness in the U.S. economy continues to affect M&A deal activity and value in the industrial products sectors, specifically industrial manufacturing, chemicals, and metals, according to a series of PricewaterhouseCoopers LLP first quarter M&A reports. While deal activity remains steady, deal volume and value is not on pace to exceed 2007 levels; however, the number of deals announced during the quarter is on track to meet or exceed 2006 levels.

The slowdown in the pace of large deals announced in the first quarter is a direct reflection of the difficult financing environment. Only the transportation & logistics sector is on pace to exceed the level of large deals in both 2006 and 2007. Deal interest for targets in Asia has been particularly strong during the quarter across each subsector. Additionally, the weak U.S. dollar is driving the increased interest in U.S. targets by cross-border acquirers. Read More.

Chemical M&As "maintaining momentum": report

August 17 - Canada Plastics - Merger and acquisition activity has maintained strong momentum during the first half of 2007, according to the new quarterly Chemical Compounds report by PricewaterhouseCoopers. The report found that Western Europe still maintains the highest deal value, but a larger number of deals are occurring in North America.

Overall, in terms of value, 2007 outpaced the first half of 2006 due to the large value of "mega-deals," the report noted. Read More.

UPDATE: Chain Of Chemical Mergers Likely To Set Off Even More

July 24 - Dow Jones - The rapid pace of acquisitions recently in the typically humdrum chemicals sector has ratcheted up expectations that more are coming, as makers of the building blocks for a slew of household products seek to expand their global reach.

"We expect more consolidation," said Matt Hekman, analyst for Overland Park, Kans.-based investment adviser Waddell & Reed.

"International companies are looking to establish a presence here, and domestic companies are looking to establish, mostly via joint ventures, presences in countries with lower-cost feedstocks, like the Mideast," he said.

Considered as likely targets, say analysts, are bulk chemicals producer Nova Chemicals Corp., as well as companies in the fragmented coatings, or paint-parts, sector and manufacturers of industrial gases. Read More.