Metals Update: Fourth 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.
- Total fourth quarter deal volume increased 17% over the third quarter and average EV/EBITDA multiples increased from 6.5x in Q3 to 9.3x in Q4, suggesting renewed interest in deal activity.
- Despite recent metal price volatility, notable M&A transactions were announced in Q4 2011, including Worthington Industries Inc.’s acquisition of Angus Industries and AK Steel Holding Corp’s acquisition of Solar Fuel Co. Inc.
- As the economic outlook improves, metals M&A activity is expected to follow. Capital markets will play an important role, especially related to large deals, but strong cash balances will ultimately drive middle market deal activity. M&A is expected to continue to be a competitive advantage for many metals subsectors.
Download the Metals Update below.