Metals Update: Third Quarter 2011
Deloitte Corporate Finance LLC
This quarter’s Metals Update, produced by Deloitte Corporate Finance LLC (DCF),summarizes the most recent transactions within this industry along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.
- Metal price volatility experience in Q3 2011 has forced companies focus on near-term financial results, rather than longer-term strategic objectives.
- Despite recent metal price volatility, notable M&A transactions were announced in Q3 2011, including Reliance Steel & Aluminum Co.’s acquisitions of Continental Alloys & Services, Inc. and OneSteel Ltd.’s acquisition of Southern Iron Pty. Ltd.; Central Iron Pty. Ltd.; and Cooper Pedy Resources Pty. Ltd. From WPG Resources Ltd.
- Despite relatively flat M&A transaction volume in Q3 2011 when compared to quarterly volumes observed in the last twelve months, strong balance sheets, coupled with low interest rates, are anticipated to drive M&A activity, as companies consider opportunities for growth through acquisitions.
Download the Metals Update below.