Whenever we transact in a sector, we enjoy keeping an interest on further M&A activity.
The acquisition of ATOM by Pacific Equity Partners (PEP) is a noteworthy move in the industrial and safety supplies sector, a field we at EP Advisors know well due to a past role of merging five independent businesses in this sector, culminating in a sale to a world leading player in Axel Johnson International, leading to the formation of Certex Australia. This strategic move not only consolidated the market but also set the stage for further bolt-ons, including another of our clients, Dynamic Rigging and Lifting.
Businesses in the industrial and safety supplies sector are attractive in M&A due to their essential role in supporting a wide range of industries. These companies often have robust, diversified customer bases in sectors like mining, construction, and infrastructure, which provides stability and resilience. Moreover, their products and services are in constant demand due to ongoing safety regulations and the need for industrial maintenance, making them lucrative targets for acquisitions. The potential for growth through geographic expansion and the integration of smaller, specialized players further adds to their appeal. Companies like ATOM, Certex Australia, Blackwoods and Bunzl Safety and Lifting exemplify the dynamic nature of this market.
These are what businesses in the space are all about:
1. Certex: Specializes in lifting, rigging & safety equipment. Their product range typically includes wire ropes, lifting gear, hoists, and fall protection equipment. Providing solutions for heavy lifting applications and known for expertise in providing safe and reliable lifting systems.
2. Bunzl Safety and Lifting: offers a wide range of safety and lifting products. Their product lineup includes personal protective equipment (PPE), workwear, safety gear, lifting and rigging equipment, and other safety-related products.
3. ATOM: Offers a broad range of industrial and safety products. Their inventory includes tools, safety equipment like protective clothing and eyewear, lubricants, and cleaning supplies. They cater to industries such as mining, infrastructure, and defense, providing a wide array of industrial consumables and safety items.
4.Blackwoods: As a subsidiary of Wesfarmers, offerings include hand and power tools, safety gear, PPE, workwear, industrial fasteners, and maintenance, repair, and operations (MRO) supplies. They serve a diverse clientele across various industries, from construction to manufacturing.
Want to know more about the sector or M&A activity in the industrial space, then feel free to reach out.
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Director of Sales & Business Development - Everlast Welding and Power Equipment
4moStuart, this is great news for both your companies. Congratulations.!