Citizens M&A Advisory’s Post

Last week's acquisition of Electric Supply Center (ESC) by Sonepar USA's NorthEast Electrical operating company not only was significant due to its size, but in considering a key dynamic in the Boston, and greater New England, market. The deal is about density and market share. It helps NorthEast increase share in the Boston MSA and provides an entry into some of the larger electrical contractors in the marketplace. It also highlights that 9 distributors in New England now represent about 60% of the market! From a financial viewpoint it will quickly be accretive for Sonepar as there is the potential for many synergies. This makes is a good deal for all as I shared in these observations https://lnkd.in/eEdvsi4N Consolidation continues to remake the electrical distribution landscape (as further evidenced by the AD / IMARK merger which I'll touch on next week.) One takeaway is that manufacturers will need to be more intentional with their initiatives to increase sales. Increasing share by simply calling on distributors and asking for conversions will be more difficult going forward. What do you see as other takeaways for the Boston market? For the industry? #channelmkt #electricaltrends #sonepar #electricsupplycenter #electricaldistribution

NEWS OF THE DAY! Hubbell to Acquire Systems Control for $1.1 Billion, Strengthening Grid Reliability Solutions 1. Acquisition Details:   - Hubbell Incorporated (NYSE: HUBB) has entered into a definitive agreement to acquire Northern Star Holdings, Inc., commercially known as Systems Control.   - Systems Control is currently a portfolio company of Comvest Partners.   - The acquisition is valued at $1.1 billion in cash, subject to customary adjustments.   2. Systems Control's Expertise:   - Systems Control specializes in the manufacturing of substation control and relay panels.   - They also provide turnkey solutions for substation control buildings.   - These products are highly engineered and play a critical role in ensuring the reliability of the electrical grid.   3. Grid Reliability and Functionality:   - The offerings provided by Systems Control are essential for grid reliability.   - They allow utility customers to protect and control their substation infrastructure.   - Additionally, these products aid in the detection of faults and in regulating the flow of electricity.   4. Projected Sales for 2024:   - Systems Control estimates their sales for the year 2024 to be approximately $400 million.   5. Financing the Transaction:   - Hubbell plans to finance the acquisition through a combination of cash reserves and debt.   6. Financial Advisors and Legal Advisors:   - For Hubbell:     - Financial Advisor: Morgan Stanley & Co. LLC     - Legal Advisor: Wachtell, Lipton, Rosen & Katz   - For Systems Control:     - Financial Advisors: Harris Williams LLC and Lincoln International LLC     - Legal Advisor: McDermott Will & Emery LLP   =>Please follow #Finplate and stay updated with the latest #mergersandacquisitions news. Thanks in advance.

Assessing Acquisition Opportunities A strategic acquisition can present a compelling opportunity for an energy business to expand its market share, enhance operational capabilities, and gain a competitive edge. However, identifying and evaluating the right acquisition opportunities requires a comprehensive approach that considers both financial and strategic factors. Read more from Marty Kirschner of Gray, Gray & Gray LLP here: https://lnkd.in/gpmkQFpW

“This year’s Top 100 ranking highlights just how big a deal mergers and acquisitions are in the electrical market. By our count, more than 60 firms previously ranked on our list since 1980 have been acquired.” Always insightful information in this annual Electrical Wholesaling top rankings report. Special shoutout to Jim Lucy…I know this can’t be an easy report to pull together! #sonnhalterb2t #electricaldistribution

The electrical distribution industry has had 23 distributors acquired so far this year. Over 80 since 2021. There is one overriding reason why independents sell ... lack of a passionate next generation in the business. For those independents committed to growth, selling is not the only answer. There are plenty of ways to compete in this changing market. Lots of opportunities. Check out this article I wrote for IMARK Electrical - their magazine and members, which is the largest group of independent distributors in the US. Do you feel independent's can compete in their local markets vs national chains? #channelmkt #imarkelectrical #imark #independentdistributors #distribution #electrical

The latest Kroll Canadian M&A Industry Insights is out: Canadian M&A deal volume has slightly declined for the second consecutive year, but has increased in disclosed implied enterprise value (EV) – mostly accredited to a few megadeals that closed during the period. Even with high levels of inflation, increased interest rates and reduced access to capital, transaction volume has stayed relatively consistent. In 2023, 1,606 Canadian companies were sold, with the total disclosed EV amounting to CA$112.1 billion, indicating a 47% increase in deal value compared to 2022. https://lnkd.in/eHnBwgye

SPAC Feed: Power & Digital Infrastructure Acquisition II Corp. Reports Earnings … – Marketscreener.com - https://lnkd.in/eMyCA6S5 Power & Digital Infrastructure Acquisition II Corp. Reports Earnings …  Marketscreener.com Source: Power & Digital Infrastructure Acquisition II Corp. Reports Earnings… #SPACs #SPACNews #SPAC #IPO #markets #news #capitalmarkets #trends #goingpublic

When acquiring a power generation asset, it is important to know that independent engineering reports typically overlook the personnel aspect of plant performance. During due diligence site visits, discussions with current staff uncover vital operational insights beyond what reports offer. Even if discouraged by sellers/deal brokers, advocate for staff interaction. On-site personnel insights ensure well-informed acquisitions. Then, as plant requirements change, staffing must adapt to ensure safe, reliable and efficient operations. To learn more about the crucial role of personnel and how it impacts your investments, visit https://ow.ly/uNiW50Qi6Tz

🔋 DEAL COMPLETION 🔋 We are thrilled to announce that the CP Deals team powered another deal in the energy services sector, advising the shareholders of Green Power Hire Ltd on their sale to Speedy Services 💥 Green Power Hire is a recognised industry leading sustainable power solutions specialist, that owns and supplies battery storage units to the UK rental market 💪 The deal was led by Tom Summers, Alex Ydlibi, CFA and Mark Brockway and supported by Steve Round and Louise Meldrum on the transaction tax You can read more about the transaction, and what various members involved had to say in the comments below 👇 #Acquisition #Deals #CorporateFinance #energyservices

The Engineering Services market is experiencing a new consolidation cycle against a backdrop of accelerating investor interest and powerful sector fundamentals, according to a new industry report released by BGL’s Services investment banking team. The report features exclusive interviews with leading industry executives from Parsons, Trilon Group, DCCM, Arora Engineers, and The Office of Milo Riverso, who share compelling insights on high-growth infrastructure markets that are fueling demand for services and driving a highly active engineering services M&A market. To download your complimentary copy of this Insider and learn more about the trends predicted to keep Engineering Services M&A strong in the coming years, visit: https://lnkd.in/etyVXzQD #InvestmentBanking #MergersAndAcquisitions #Infrastructure #Industrial #EngineeringServices  cc: Eliott Musick