• Corporate Finance Transactions

BGL Industrials Insider: M&A Accelerating in the Coatings, Adhesives, Sealants, and Elastomers(CASE) Markets

August 28 2018

Cleveland, OHAugust 28, 2018 – Industry fragmentation is high and consolidation a key theme in the coatings, adhesives, sealants, and elastomers (CASE) markets, where M&A is accelerating across all verticals, according to the Industrials Insider, an industry report released by Brown Gibbons Lang & Company (BGL).  

The CASE markets have experienced steady growth against a backdrop of global economic expansion; gains in industrial and automotive production; and strengthening recovery in the construction markets. Acquisitions are occurring across areas of expertise, technologies, and geographies, as industry players look to gain entry or increase penetration in fast-growing niches, with highly strategic assets attracting premium valuations in the current environment.

Corporates are actively pursuing acquisitive growth, with large targets such as Valspar (Sherwin-Williams), Royal Adhesives & Sealants (H.B. Fuller), and A. Schulman (LyondellBasell) illustrative of an aggressive posture. Bolt-on activity has also been robust with Axalta Coating Systems and PolyOne among the industry players to complete serial buys. Private equity groups have been equally aggressive illustrated by an increasing level of new investments and add-on acquisitions.  U.C. Coatings (High Road Capital Partners), Innovative Chemical Products (Audax Group), Valentus Specialty Chemicals (Huron Capital Partners), and Meridian Adhesives Group (Arsenal Capital Partners) are among the platforms looking to consolidate the market. 

Liquidity will continue to fuel deal-making as buyers look to deploy surplus capital.

BGL publishes periodic Insider research publications on a variety of industries including automotive; building products and construction materials; business services; consumer and retail; environmental and industrial services; healthcare and life sciences; industrials; metals; and plastics and packaging.  Download BGL Insider reports at https://www.bglco.com/research.

About Brown Gibbons Lang & Company

Brown Gibbons Lang & Company is a leading independent investment bank serving the middle market. BGL specializes in mergers and acquisitions advisory services, debt and equity placements, financial restructuring advice, and valuations and fairness opinions, with global industry teams in Business Services, Consumer & Retail, Environmental & Industrial Services, Healthcare & Life Sciences, Diversified Industrials, Metals & Metals Processing, and Real Estate. BGL has offices in Atlanta, Chicago, Cleveland, Denver, Philadelphia, San Antonio, and San Diego, in addition to Global M&A partner offices in more than 50 countries across 5 continents. BGL is able to deliver to our clients unparalleled access to strategic relationships, investors, and opportunities globally. For more information, please visit www.bglco.com.

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