Mid-Market M&A Dropped Again in April

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Dealmaking dipped again in April, with the composite score of Mergers & Acquisitions’ Mid-Market M&A Conditions Index (MACI) of 52.0, down from the March score of 54.6. (See related chart). Despite the drop, the April composite score beat the 51.3 average for the first quarter, offering a glimmer of hope for the second quarter.

Looking at selected components of the index, leads for new transactions dropped, and signed letters of intent stayed essentially flat. Respondents to our survey said they experienced an increase in completed deals, but, according to data provided by Thomson Reuters, the volume of closed mid-market transactions declined in April.

Availability of financing, which hit a record low in February, rose to 47.1 in April, suggesting that the tightening of credit may be slowing down.

Corporate sell-offs remained robust, delivering a divestitures component score of 56.5, but activity was nowhere near as high as the previous month, when the score soared to 88.3 (not shown). Many corporations, including Newell Rubbermaid (NYSE: NWL) and Procter & Gamble Co. (NYSE: PG), are casting off low-performing product offerings to focus on high-growth brands, a trend we expect to see more of in 2016.

One sector that produced a lot of deal news in April was specialty chemicals. In addition to several announcements, CVR Partners LP completed its acquisition of fertilizer maker Rentech Nitrogen Partners for about $840 million. We expect more activity among chemical makers in the months to come. See the table, below, for more middle-market transactions that closed in April.

See the table, below, for more middle-market transactions that closed in April.

Editor’s Note: To measure activity in the middle market, Mergers & Acquisitions looks at transactions that fulfill several requirements: Deals must have a value of roughly $1 billion or less; they must be completed (not just announced) within the timeframe designated; and they must include at least one U.S. company in the role of buyer and/or seller. Excluded from our charts are: recapitalizations; self tenders; exchange offers; repurchases; stake purchases; and transactions with undisclosed values, buyers or sellers. Our data provider is Thomson Reuters, which updates its databases continuously. We use the data available at press time.

Key Middle-Market M&A Deals Completed in April 2016        
Date Acquirer Target Target Industry Value ($mil)
04/04/16 Siemens AG CD-adapco Group Inc Prepackaged Software 970.0
04/19/16 Nathan Holding LLC Netsmart Technologies Inc Prepackaged Software 950.0
04/08/16 Terra Energy Partners LLC WPX Energy Rocky Mountain LLC Oil and Gas; Petroleum Refining 910.0
04/29/16 MKS Instruments Inc Newport Corp Measuring, Medical, Photo Equipment; Clocks 888.7
04/01/16 Brookfield Renewable Energy Talen Energy-Facilities(2) Electric, Gas, and Water Distribution 860.0
04/01/16 CVR Partners LP Rentech Nitrogen Partners LP Chemicals and Allied Products 839.6
04/04/16 ResMed Inc Brightree LLC Business Services 800.0
04/28/16 Shareholders Pinnacle Ent Inc-Operating Bus Hotels and Casinos 674.3
04/21/16 LKQ Corp Pittsburgh Glass Works LLC Transportation Equipment 635.0
04/01/16 MPLX LP Marathon Petro Corp-Inland Transportation and Shipping (except air) 600.0
04/01/16 Bristol-Myers Squibb Co Padlock Therapeutics Inc Drugs 600.0
04/13/16 Legg Mason Inc Clarion Partners LLC Investment & Commodity Firms,Dealers,Exchanges 585.0
04/04/16 Charles River Labs Intl Inc WIL Research Laboratories Inc Business Services 585.0
04/01/16 Tahoe Resources Inc Lake Shore Gold Corp Mining 577.7
04/01/16 BB&T Corp CGSC North America Holdings Insurance 500.0
04/12/16 Blount International Inc SPV Blount International Inc Metal and Metal Products 482.5
04/01/16 Honeywell International Inc Xtralis Pty Ltd Business Services 480.0
04/08/16 Crown Castle International Tower Development Corp Communications Equipment 461.0
04/21/16 Owens Corning InterWrap Inc Paper and Allied Products 450.0
04/14/16 Insight Venture Partners LLC Diligent Corp Prepackaged Software 445.3
04/28/16 American Air Filter Co Inc Flanders Corp Machinery 430.0
04/01/16 Coronado IV LLC CONSOL Energy Inc-Coal Assets Mining 420.0
04/04/16 Vista Outdoor Inc BRG Sports Inc-Action Sports Miscellaneous Manufacturing 400.0
04/14/16 Veolia Environnement SA Kurion Inc Public Administration 350.0
04/01/16 Shareholders Armstrong World Inds-Flooring Miscellaneous Manufacturing 332.9
04/12/16 WS Atkins PLC EnergySolutions- Projects,Prod Sanitary Services 318.0
04/08/16 Gannett Co Inc Journal Media Group Inc Printing, Publishing, and Allied Services 292.9
04/01/16 ADESA Inc Brasher's Auto-Auctions(8) Wholesale Trade-Durable Goods 283.2
04/21/16 Investor Group Nova KBM dd Commercial Banks, Bank Holding Companies 281.0
04/06/16 BlueStone Natural Resources II Quicksilver Resources Inc-US Oil and Gas; Petroleum Refining 245.0
04/18/16 AmTrust Financial Services Inc Republic Cos Group Inc Insurance 233.0
04/11/16 Kimco Realty Corp Oakwood Plaza,Hollywood,FL Real Estate; Mortgage Bankers and Brokers 215.0
04/08/16 Albany International Corp Harris Corp-Aerostructures Bus Communications Equipment 210.0
04/01/16 Sykes Enterprises Inc Clear Link Technologies LLC Business Services 207.0
04/15/16 EMCOR Group Inc Ardent Services LLC Construction Firms 205.0
04/22/16 Dechra Pharmaceuticals PLC Putney Inc Drugs 200.0
04/13/16 PVH Corp TH Asia Ltd Textile and Apparel Products 172.0
04/08/16 Aquiline Capital Partners LLC AnaCap Finl Partners-Simply Insurance 168.7
04/14/16 Mesirow Realty Sale-Leaseback Bob Evans Farms-Restaurants Retail Trade-Eating and Drinking Places 163.4
04/01/16 CyrusOne Inc CME Grp Inc-Data Construction Firms 130.0
04/04/16 InvenTrust Properties Corp Renaissance Ctr,Durham,NC Real Estate; Mortgage Bankers and Brokers 129.2
04/07/16 Envision Healthcare Hldg Inc Emergency Physicians Medical Health Services 120.0
04/19/16 McCormick & Co Botanical Food Co Pty Ltd Food and Kindred Products 116.2
04/22/16 JF Lehman & Co API Technologies Corp Electronic and Electrical Equipment 111.7
04/07/16 Atlas Air Worldwide Holdings Southern Air Holdings Inc Air Transportation and Shipping 110.0
04/01/16 DiNapoli Capital Partners Oasis Apartment Complex Real Estate; Mortgage Bankers and Brokers 106.5
04/15/16 Beneficial Bancorp Inc Conestoga Bancorp Inc Commercial Banks, Bank Holding Companies 105.0
04/14/16 Opus Bank PENSCO Trust Co Investment & Commodity Firms,Dealers,Exchanges 103.7
04/01/16 Schoeller-Bleckmann Oilfield Downhole Technology LLC Measuring, Medical, Photo Equipment; Clocks 103.0
04/20/16 Western Alliance Bank Gen Elec-Hotel Loan Portfolio Credit Institutions 98.0
04/01/16 Real Matters Inc Linear Title & Closing Ltd Insurance 96.0
04/06/16 ARMOUR Residential REIT Inc JAVELIN Mortgage Invstmnt Corp Investment & Commodity Firms,Dealers,Exchanges 85.2
04/20/16 Oxford Industries Inc Southern Tide LLC Textile and Apparel Products 85.0
04/21/16 Allergan PLC Topokine Therapeutics Inc Drugs 85.0
04/07/16 Invesco Ltd Religare Invesco Asset Investment & Commodity Firms,Dealers,Exchanges 80.4
04/01/16 CenterPoint Energy Svcs Inc Continuum Ret Energy Svcs LLC Electric, Gas, and Water Distribution 77.5
04/04/16 Vtech Holdings Ltd LeapFrog Enterprises Inc Miscellaneous Manufacturing 73.3
04/20/16 InvenTrust Properties Corp Stevenson Ranch Plaza Real Estate; Mortgage Bankers and Brokers 72.5
04/22/16 UBM PLC Business Journals inc Textile and Apparel Products 69.0
04/04/16 The Cooper Cos Inc Genesis Genetics LLC Health Services 60.0
04/15/16 Charter Financial Corp CBS Financial Corp Commercial Banks, Bank Holding Companies 58.8
04/01/16 Renasant Corp KeyWorth Bank,Atlanta,Georgia Commercial Banks, Bank Holding Companies 58.7
04/29/16 United Insurance Holdings Corp Interboro Insurance Co Inc Insurance 57.0
04/05/16 GigOptix Inc Magnum Semiconductor Inc Electronic and Electrical Equipment 55.1
04/12/16 EW Scripps Co Demand Media Inc-Cracked Bus Business Services 39.0
04/14/16 National Retail Properties LP Bob Evans Farms-Restaurants Retail Trade-Eating and Drinking Places 36.6
04/08/16 TerraForm Global Inc Alto Cielo SA Electric, Gas, and Water Distribution 35.4
04/05/16 RetailMeNot Inc Giftcard Zen Inc Miscellaneous Retail Trade 33.0
04/25/16 TIO Networks Corp Softgate Systems Inc Business Services 30.4
04/06/16 CareDx Inc Allenex AB Measuring, Medical, Photo Equipment; Clocks 27.4
04/14/16 Sunbeam Products Inc Sunbeam Corp Ltd Electronic and Electrical Equipment 26.9
04/08/16 3D Medical Ltd Mach7 Technologies Pte Ltd Aerospace and Aircraft 25.7
04/25/16 Golden Entertainment Inc Amusement Services LLC Business Services 25.0
04/29/16 Rotork PLC Mastergear Worldwide Machinery 25.0
04/21/16 TravelCenters of America LLC Quaker Steak & Lube Retail Trade-Eating and Drinking Places 25.0
04/01/16 Repligen Corp Atoll Gmbh Drugs 24.6
04/04/16 American Addiction Centers Inc Wetsman Forensic Medicine LLC Health Services 21.3
04/27/16 Data Device Corp Maxwell Tech Inc-MicroElectns Electronic and Electrical Equipment 21.0
04/20/16 Corporate Travel Mgmt Ltd Travizon Inc Transportation and Shipping (except air) 21.0
04/01/16 Zayo Group Holdings Inc Clearview International LLC Business Services 18.9
04/22/16 Capella Education Co Hackbright Academy Educational Services 18.0
04/04/16 Samson Oil & Gas USA Inc Williston Basin Ppty,N Dakota Oil and Gas; Petroleum Refining 16.5
04/01/16 Entegra Financial Corp Oldtown Bank,Waynesville,NC Commercial Banks, Bank Holding Companies 13.5
04/29/16 Mackinac Financial Corp First Natl Bk of Eagle River Commercial Banks, Bank Holding Companies 12.5
04/04/16 Saicon Consultants Inc AurionPro Solutions Ltd-IT Prepackaged Software 10.0
Source: Thomson Reuters        
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