Cytec Industries Inc has announced a £274m recommended offer for UMECO plc, the UK manufacturer of composite materials.
The latest acquisition of a mid-cap UK industrial group sees the US group expand its global portfolio of engineered materials for the aerospace, automotive, defence, industrial, recreational equipment and wind energy sectors. The transaction will allow Cytec to enhance it range of products for applications such as those in the automotive industry as car manufacturers seek to reduce carbon emissions and vehicle weight. The group will also be able to add UMECO’s expertise in supply chain solutions which are tailored to the needs of high performance industrial sectors.
The terms of the deal value UMECO at 500p per share which equates to a 46.3% premium to group’s closing share price on the day before the announcement. Significantly, the multiple of earnings paid by Cytec equates to roughly 10x UMECO’s current run-rate EBITDA. This may sound like a big multiple but for a market leading, globally-positioned player operating in a growing market this will represent a truly value-enhancing acquisition for Cytec.
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ITT Exelis Inc has acquired Applied Kilovolts Group Holdings Ltd, a UK developer and manufacturer of precision high voltage power supplies for the food safety, instrumentation, medical, pharmaceutical and scientific research markets. The business will be integrated into the group’s Exelis Geospatial Systems division where it will reinforce its range of commercial analytical instrumentation.
UK private equity firm NBGI Private Equity has backed the management buy-out of ATR Group Ltd, a UK provider of rental services for specialist equipment and tools for the offshore oil and gas industry. ATR also provides a range of value-added support services including equipment certification, health and safety compliance, inspection and outsourced fleet management for the marine, renewable energy and subsea sectors.
Industrial Adhesive Solutions Ltd (Indasol) has acquired Avanti Tapes Ltd, a UK manufacturer of specialist industrial adhesives and tape solutions. The acquisition will reinforce Indasol’s range of specialist industrial bonding solutions.
API Technologies Corp has acquired C-MAC Aerospace Ltd, a UK manufacturer of high-reliability electronic systems for the aerospace, defence, energy, industrial and space sectors. The £21m acquisition will strengthen the US group’s position in the RF/microwave and microelectronics markets. The transaction provides an exit for UK private equity firms Francisco Partners and Shah Capital Partners.
Semco Maritime AS has acquired Capelrig Ltd, a UK supplier of automation and control systems for the offshore oil and gas industry. The acquisition will strengthen the Danish group’s electrical and instrumentation offering for rig projects in the North Sea.
Nolato AB has acquired Cope Allman Jaycare Ltd, a UK manufacturer of plastic packaging for the pharmaceutical industry. The acquisition complements the Swedish group’s recent acquisition of US pharmaceutical packaging manufacturer Contour Plastics Inc and will reinforce its relationships with international pharmaceutical groups headquartered in the UK.
Bodycote plc has acquired the heat treatment business of Curtiss-Wright Corp for £33m. The acquisition will broaden the UK group’s presence in North America and expand its capabilities for the aerospace and oil and gas industries in particular.
OpSec Security Group plc has acquired Delta Labelling Ltd a UK manufacturer of leather, metal, printed, PVC and woven labels for the fashion industry. The £12.5m will reinforce OpSec’s existing brand protection offering for the apparel and fashion sectors.
Siemens AG has acquired the Connectors and Measurements division of Expro International Group Ltd for £390m. The unit is a designer and manufacturer of cable connectors, measuring devices and sensors for sub-sea oil and gas equipment.
National Oilwell Varco Inc (NOV) has acquired Forth Valley Engineering Ltd, a UK provider of forging services for the offshore drilling and production industries. NOV has also acquired Techdrill Ltd, a UK designer and fabricator of manifold systems for the offshore drilling industry.
CPR Aerospace Inc has acquired the Wood Group Turbopower unit of John Wood Group plc. Wood Group Turbopower is a US provider of aero engine maintenance services.
UK private equity firm Chamonix Private Equity has acquired Apex Linvar Ltd from Linpac Group Ltd. Formerly Linpac Storage Systems Ltd, Apex Linvar is a UK manufacturer of racking and shelving for the distribution, logistics, materials handling and retail sectors.
Cookson Group plc has acquired Metallurgica GmbH, a German supplier of fluxes used in enclosed continuous casting for steel production. The acquisition will be integrated into the UK group’s Engineered Ceramics division where it will enhance its range of steel flow control products and services.
Forsyths Group Ltd has acquired Northern Fabricators Ltd, a UK manufacturer of specialist copper and stainless steel vessels for the whisky industry. The acquisition will expand Forsyth’s range of equipment for the distillery and energy markets.
TETRA Technologies Inc has acquired Optima Solutions Holdings Ltd, a UK supplier of rig cooling solutions for the offshore oil and gas industry. The £40m transaction will enhance the US group’s range of equipment used in heat suppression during hydrocarbon flaring as part of offshore well testing operations.
Marubeni Corp has acquired Seajacks International Ltd, a UK supplier of self-propelled jack-up vessels for the offshore renewable energy and oil and gas industries. The acquisition will enhance the Japanese group’s range of construction, engineering and procurement services for the offshore wind market in particular. Marubeni has been supported in the acquisition by Innovation Network Corporation of Japan (INCJ), a Government-sponsored private equity firm. The transaction provides an exit for US private equity firm Riverstone.
The Business Growth Fund has invested £9m in STATS Group Ltd, a UK supplier of pipeline integrity and maintenance products and services. STATS’s range of solutions includes pipeline connection, isolation, intervention, inspection, repair and testing.
Gonvarri Steel Industries SA has acquired Steel & Alloy Holdings Ltd, a UK provider of steel processing services. The acquisition will strengthen the Spanish group’s presence in the automotive industry thanks to Steel & Alloy’s relationships with BMW, Ford, General Motors, Honda, Jaguar Land Rover, Nissan and Toyota.
Larsen & Toubro Ltd has acquired Thalest Ltd, a UK developer and supplier of automation, bridge systems, monitoring systems and navigation equipment for commercial vessels, floating offshore vessels and naval warships. Operating through its subsidiaries Bond Instrumentation & Process Control Ltd, Servowatch Inc and Servowatch Systems Ltd, the acquisition will be integrated into the Indian group’s Electrical & Automation division.
MB Aerospace Holdings Ltd has acquired the business and certain assets of Thomson Aero Ltd from the administrator. Thomson Aero is a manufacturer of complex machined aero-engine components for civil aerospace, industrial gas and military aerospace turbines. MB Aerospace is backed by UK private equity firm LDC.
US private equity firm Madison Dearborn Partners has acquired Tomkins plc the Schrader division of for £315m. Schrader is a US manufacturer of tyre pressure monitoring systems. Tomkins is backed by Canadian private equity firm Onex and Canada Pension Plan Investment Board.
Cytec Industries Inc has acquired UMECO plc, a UK manufacturer of composite materials for the aerospace, automotive, defence, industrial, recreational equipment and wind energy sectors. The £274m acquisition will reinforce the US group’s portfolio of businesses focused on additive technologies, engineered materials and process separation.
TVS Group Ltd has acquired Universal Components UK Ltd, a UK distributor of automotive components. The acquisition will enhance the Indian group’s presence in the European market whilst also providing it with access to African, Asian and Middle Eastern markets.
Corac Group plc has acquired Wellman Hunt Graham Ltd, a UK manufacturer and supplier of shell and tube heat exchangers for the oil and gas industry. The £11m acquisition includes Wellman Defence Ltd, a UK manufacturer of submarine air purification and clean air ventilation equipment.
For an insight into the industrials industry, you can download Clearwater’s latest industrials team report on Precision Engineering here.