RKCA Investment Banking’s Post

(Building material) distributors: what’s the real story behind “QXO”? 1.       Rolling up the building-material distributor channel? Isn’t this a bit late in the game for what’s already been going on? There are some huge existing roll-ups already. But, 2.       Check out “the man”, Brad Jacobs on Wikipedia. He has an amazing track record of doing roll-ups. 3.       Go to QXO.com. They purport to be a value-added, tech-solution buyer. 4.       The top of this article is about the behind-the-scenes mechanics of creating a public company with $4.5 B in dry buying powder to pursue an audacious goal of $50B in sales. 5.       What do readers guess will happen with this biggest-ever plan for a distribution channel? 

Merger of Glatfelter and Berry with “Berry Common Stock” owners to own 90% of Glatfelter outstanding capital stock. EVANSVILLE, Ind. & CHARLOTTE, N.C.--(BUSINESS WIRE)--Feb. 7, 2024--  Berry Global Group, Inc. (NYSE:BERY) and Glatfelter Corporation (NYSE:GLT) announced today they have entered into definitive agreements for Berry to spin-off and merge the majority of its Health, Hygiene and Specialties segment to include its Global Nonwovens and Films business (“HHNF”) with Glatfelter, to create a leading, publicly-traded company in the specialty materials industry. The Boards of Directors of Berry and Glatfelter have unanimously approved the transaction. The transaction is being structured as a Reverse Morris Trust transaction and is intended to be tax-free to Berry, Glatfelter and their respective shareholders for U.S. federal income tax purposes. Key details of the transaction include: Ownership: Berry shareholders will own 90% of the combined company's common shares upon consummation of the transaction. Glatfelter shareholders will own the remaining 10% of the combined company. Cash Proceeds: Berry is expected to receive net cash proceeds of approximately $1 billion at close and intends to use these proceeds to repay existing debt. Berry expects to maintain its existing capital allocation priorities following this transaction. Financing: NewCo. has obtained committed financing from Citigroup and Wells Fargo Bank, N.A. and expects to raise permanent debt financing by transaction close, resulting in net leverage of approximately 4.0x, inclusive of Glatfelter’s $500 million 4.75% Senior Notes due 2029, which are anticipated to remain outstanding. Closing: Closing of the transaction is expected to occur in the second half of calendar 2024, subject to various customary closing conditions, including regulatory approvals and Glatfelter shareholder approval. No vote of Berry’s shareholders is required for the transaction. Employee representation will be involved where applicable. Pro Forma Impact to Berry: The transaction is expected to be leverage neutral to Berry. VIEW MORE DETAILS AT LINK BELOW:

Mergers and Acquisitions The 2024 buy-sell market: should dealers wait to sell? — John Davis | Haig Partners By Colin Velez The dealership buy-sell market has undergone significant changes in a short period of time, as the retail automotive sector has grappled with unprecedented innovations and transformations. As the industry enters a new year, it is important to understand both how the mergers-and-acquisitions market has shifted and how it has remained the same. #automotive #retail #dealerships https://lnkd.in/eRGT5525

December has arrived and as we close the books on another great year, there is again uncertainty for what is to come in 2024.  At the end of last year, I wrote that most likely your business strategies for 2023 might have included contemplating aspects such as consolidation and engaging in merger and acquisition endeavors as this was indeed a noteworthy trend highlighted by MHEDA for 2023. 

Did you hear the news? The FTC has challenged Tempur Sealy’s acquisition of Mattress Firm, alleging it will stifle competition and harm consumers. This high-stakes battle could have significant implications for the mattress industry. Want to learn more about the potential impact on retailers and consumers? Read our full article 👉 https://lnkd.in/egNBx-Hy #FTC #TempurSealy #MattressFirm #merger #competition #retail #mattressindustry

December has arrived and as we close the books on another great year, there is again uncertainty for what is to come in 2024.  At the end of last year, I wrote that most likely your business strategies for 2023 might have included contemplating aspects such as consolidation and engaging in merger and acquisition endeavors as this was indeed a noteworthy trend highlighted by MHEDA for 2023. 

McKinsey & Company: "Companies advance myriad strategies for creating value with acquisitions—but only a handful are likely to do so. There is no magic formula to make acquisitions successful." What may happen in next five years? #acquisitions #multinationalcompanies

📈 𝘋𝘦𝘢𝘭𝘦𝘳𝘴𝘩𝘪𝘱 𝘔&𝘈 - 𝘔𝘢𝘳𝘬𝘦𝘵 𝘜𝘱𝘥𝘢𝘵𝘦! 📈 Dealership mergers and acquisitions have surged during the first five months of 2024, with this trend expected to continue into next year. Stay informed on the latest industry trends and read the full Equipment Finance News article to gain insights into this dynamic market. 🌾🚜 #EquipmentDealers #MergersAndAcquisitions #IndustryTrends #PerformanceBrokerageServices #EquipmentFinanceNews #DealershipGrowth https://lnkd.in/ejeJJ9hn

The FTC is taking a stand against Tempur Sealy's $4 billion acquisition of Mattress Firm. This move could set a major precedent for how courts evaluate vertical mergers, where companies at different levels of the supply chain combine. The FTC argues that this deal could harm competition by blocking rival mattress brands from key retail channels. This is the first challenge since new merger guidelines were published last December, highlighting concerns about market access and fair competition. While Tempur Sealy denies the claims and highlights potential benefits like cost savings and improved product promotion, the outcome of this case will be closely watched. It could shape the future of vertical mergers and competition in the market. Stay tuned for more updates as this story develops! #MergersAndAcquisitions #FTC #Antitrust