CHICAGO and CLEVELAND and PHILADELPHIA, Oct. 20, 2016 /PRNewswire/ -- Positive growth in global manufacturing and end user market demand are stimulating M&A activity in Industrial Consumables, according to the Industrials Insider, an industry report released by Brown Gibbons Lang & Company (BGL) www.bglco.com. Lubricants is among the active markets, as investors target manufacturers of engineered products and materials that cater to specialized markets and applications.
The BGL report, now available online HERE, documents economic growth, continued increases in industrial production, and lower base oil prices as drivers of revenue and profit growth for lubricants manufacturers. Demand for higher value-added specialty lubricants is growing with the increasing use of advanced materials and technologies in manufacturing processes.
Future consolidation is expected as industry participants look to build scale in a fragmented market. Strategic rationale for recent acquisitions has centered on expanding technology and engineering resources, broadening product portfolios, and diversifying into growing end markets:
- Germany-based FUCHS Group acquired Ultrachem in August, its seventh buy in six years, to expand its reach in the specialty lubricants market in the U.S. The deal came within months of its purchase of Chevron's White Oils and Food Machinery Specialty Lubricants Business, announced in May.
- Houghton International was looking to boost its metalworking capabilities with the acquisition of Wallover Enterprises in July, a move that would broaden its product portfolio and tap Wallover's track record of innovation to enhance its customer value proposition.
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, Environmental & Industrial Services, Healthcare & Life Sciences, Industrials, and Real Estate. BGL has offices in Chicago, Cleveland, and Philadelphia and real estate offices in Chicago, Cleveland, Irvine, and San Antonio, 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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SOURCE Brown Gibbons Lang & Company