Merger deals hit 4-year low
By Alex Nixon
Published: Saturday, June 1, 2013, 12:01 a.m.
Merger and acquisition activity involving companies in the Pittsburgh region hit a nearly four-year low in the first quarter, according to a report from Strategic Advisors, a Cecil investment banking firm.
There were 46 deals in the January-March quarter, down from 72 in the same quarter last year, as companies scrambled to complete deals at the end of 2012 before tax changes this year made them less profitable, said Matt Steve, senior associate at Strategic Advisors.
“The deal level last year may have been artificially inflated,” said Steve, who noted he was not surprised to see a dip in deal activity in the first part of this year.
There were 42 deals in the third quarter of 2009 — during the financial and economic crisis — the last time so few deals were completed, Steve said.
It's likely just a short-term dip, he said.
“Activity for the remainder of 2013 will most likely settle at a more normalized level,” he said.
The firm's quarterly report compiles data on what it calls the greater Pittsburgh area, which includes Western Pennsylvania and parts of Ohio, West Virginia and Maryland.
The median value of deals in the first quarter fell to $27 million, down from $70.8 million last year. There were only six transactions in which values were publicly disclosed, compared with 14 last year.
The largest transaction was PPG Industries Inc.'s $2.1 billion sale of its commodity chemical business to an Atlanta-based company in January. PPG's commodity chemicals unit, which produces chlorine, caustic soda and other chemicals, was merged with Georgia Gulf Corp., and the combined company was renamed Axiall Corp.
Activity by investment firms also hit its lowest level since the end of 2009, Steve said. The lone purchase was completed by local investment firm PNC RiverArch Capital, which acquired a controlling interest in LawLogix Group, Inc., an Arizona company that makes immigration compliance software.
Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or email@example.com.
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.
- More women seize opportunities to start businesses
- Meat prices drain barbecue budgets
- Record cold facilitates coal’s comeback
- Lawsuit challenges Hollywood standard of unpaid internships
- Pa. unemployment rate falls to lowest since 2008; 12,000 more enter workforce
- Squeezed by competition, Chobani to expand offerings
- Low pay, commutes among top stressors
- Pandora sued by record companies
- Investment in Western Pa. startups reaches 5-year high
- Retailers tailor store experience to phones
- Salad dressing company manages growth