For the second straight month, the building materials sector saw the biggest flurry of M&A deals – and the biggest buzz surrounding a potential sale.
US LBM Holdings, Green Bay, WI, acquired K-I Lumber & Building Materials, Louisville, KY, to expand its presence in Kentucky and Indiana, and also acquired Wallboard Supply, Londonderry, NH, to expand its presence in New England.
A subsidiary of manufacturer Universal Forest Products Inc., Grand Rapids, MI, acquired 80 percent of Packnet Ltd., Eagan, MN, with the option to buy the remaining 20 percent in three years. Packnet manufactures packaging products and related accessories. A separate UFPI subsidiary, UFP Western Division, acquired Bigs Packaging and Lumber LLC, Dallas, TX, a manufacturer of industrial wood and packaging solutions.
And according to a Reuters report, Itochu Corp. is looking to sellbuilding materials and fasteners distributor PrimeSource Building Products Inc., Irving, TX, for more than $1 billion. Citing people familiar with the matter, Reuters says the Japanese trading house has hired JPMorgan Chase & Co. to hold an auction for PrimeSource, which has attracted interest from private equity firms.
The gases and welding sector also stood out with a handful of notable transactions and expansions in November. Air Liquide Canada, a subsidiary of the Air Liquide Group, acquired two companies: industrial gases and welding equipment distributors Oxygène Pro-Tech Inc. and Métalox (2000) Inc., both based in Quebec, Canada.
Scott-Gross Company Inc., Lexington, KY, and American Welding & Gas Inc., Billings, MT, are merging. The transaction includes the Thoroughbred Industrial Cylinder Exchange Company. Scott-Gross Company operates 34 locations in 11 states. American Welding & Gas operates 40 welding locations and 5 propane locations in eight states.
The electrical sector also produced some activity in November, headlined by France-based electrical distributor Sonepar buying Singapore electrical and industrial automation distributor HoST Pte Ltd. Other electrical acquisitions included Lincoln Electric buying RealWeld Systemsand Brook Electrical acquiring Platinum Electrical.
Here are other key deals that occurred in November 2014: