Merger activity in region jumped 24% in '12
The 69 mergers and acquisitions in the Pittsburgh region in the fourth quarter were more than 20 percent above year-earlier levels and capped a year of heavy deal flow, said a report on Monday.
Data from Strategic Advisors Inc., an investment banking firm in Cecil Township, also showed median deal values increased significantly to $44 million in the October-December period from $16 million in the July-September period. Deal values are not available for many transactions, however.
For all of 2012, area companies closed 279 deals, which marked a 24 percent increase from 225 completed in 2011.
The most active buyers in the Pittsburgh region last year were Wesco International Inc. and Incline Equity Partners, both of which completed five acquisitions.
The prospect of higher capital gains taxes in 2013 probably pushed some sellers to close transactions before the end of 2012, senior associate Matt Steve said.
“A lot of this was driven by people trying to get their deals done before tax rates went up,” said Steve, whose firm advised on two deals last quarter. “Nationally, people were trying to get deals closed before the end of the year, too.”
Of last quarter's 69 deals, 32 involved local companies that were buyers, while 37 were sellers.
The four quarters of 2012 each averaged 70 deals — far higher than the quarterly average of 56 in 2011, the firm said.
The largest deal involving a company in this region last quarter — and the second-largest of 2012 — was a $1.16 billion acquisition by Wesco. The company, which distributes electrical and industrial supplies globally, acquired Calgary-based EECOL Electric Corp., which has a similar business.
The second-biggest deal last quarter — and the fourth-largest of the year — was Coraopolis-based Heckmann Corp.'s $531 million acquisition of Badlands Energy LLC, Watford City, N.D. Both companies provide environmental services.
Most of the deals closed in the October-December quarter involved industrial companies, followed by information technology companies, Steve said.
Strategic Advisors tracks M&A deals on companies from Altoona west to northeastern Ohio but excluding Cleveland.
Thomas Olson is a staff writer for Trib Total Media. He can be reached at 412-320-7854 or at firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Bond mutual funds continue to carry their weight
- First Niagara sets aside $45 million
- Amazon investors’ patience wears thin
- Toyota Yaris adds French flair for ’15
- Sell-off reins in complacency
- Mini goes mainstream
- Motoring Q&A: ‘Check engine’ light doesn’t reset itself
- Stocks rise broadly on earnings; Amazon sinks
- Rule to close coal royalty loophole
- PUC approves Columbia Gas pipeline extensions program for homeowners
- Education Management removes itself from Nasdaq listing