Construction has consistently been a key area for mergers and acquisitions (M&A) activity as investors look to diversify their businesses and take advantage of synergies and economies of scale.
Cross-border M&A deals also offer investors opportunities to access new markets. However, cross-border deals are seen as more complex transactions when compared with their domestic equivalents, which explains why domestic deals outnumber the cross-border ones in several sectors, including construction.
Nevertheless, Investment Monitor has identified three cross-border deals that were key for the construction sector in 2022.
Chart Industries signs agreement to acquire Howden Group
Chart Industries, a US manufacturer of highly engineered equipment, has signed a definitive agreement to acquire Howden Group, a UK-headquartered provider of mission-critical air and gas-handling products and services, for $4.4bn (£3.62bn).
The acquisition is set to expand Chart’s equipment portfolio and process technology offering for multiple molecules and applications across high-growth areas.
“The offerings of Chart and Howden are highly complementary, bringing multiple cost synergies, commercial synergies and efficiencies in the first year, along with significant aftermarket, service and repair exposure, which lifts the margin profile of the combined business, adds resiliency and broadens our end markets,” said Jill Evanko, Chart’s CEO and president, in a press release.
She also explained that the two companies have shared customer-centric values and are both very committed to innovation, which will result in expanded reach into global markets and acceleration in product development.
Ho Bee Land enters into an agreement to acquire 34 Leadenhall Street
Ho Bee Land Limited, a Singaporean real estate development and investment company, has agreed to acquire 34 Leadenhall Street, which is based in UK and is the registered owner of the building The Scalpel in the City of London, for around £718m (S$1.18bn).
The Scalpel has approximately 406,000ft2 of best-in-class grade A office space spread over 36 storeys and three retail units at ground and basement levels. “The building is predominantly multi-let to reputable tenants from the insurance, financial, legal and technology sectors,” stated a press release. “The long tenancies of the leases offer secure ten-year passing rent of £29m, translating to an attractive yield of 4%.”
Kingspan Group acquires Ondura
Kingspan Group, an Irish manufacturer of insulation, building fabric and solar-integrated building envelopes, has signed an agreement to acquire the France-based provider of roofing and building waterproofing solutions Ondura for €550m.
The acquisition of Ondura is set to increase Kingspan Group earnings before interest, taxes, depreciation and amortisation by approximately 7% on a full-year basis, according to a press release. The release added that “the acquisition is fully aligned with Kingspan’s long-stated strategy to develop multiple technologies in roofing applications and will serve as our global platform for advancing these solutions”.