Andy Hinz, Managing Director, Grace Matthews11.05.18
The current structure of the adhesives and sealants industry is highly-conducive to M&A activity. While five companies account for about a third of the $50 billion global adhesives market, the balance of the market is highly fragmented, consisting of hundreds of small- and medium-sized companies. Most of these companies have revenues under $100 million, allowing buyers to pursue multiple, highly-strategic “bite-sized” targets without taking on excess risk. Large companies are using M&A to bolster their product offerings, expand their geographic reach and optimize their production network, allowing them to more effectively serve customers and also improve their cost structure.
We expect consolidation to continue for the foreseeable future. While many high-quality companies have already been acquired over the last several years, a large number of small and mid-sized companies remain privately held. In some ways, consolidation can put pressure on smaller players as the majors use their increasing size and scale as a competitive advantage in the market. On the other hand, smaller companies can often be more nimb
We expect consolidation to continue for the foreseeable future. While many high-quality companies have already been acquired over the last several years, a large number of small and mid-sized companies remain privately held. In some ways, consolidation can put pressure on smaller players as the majors use their increasing size and scale as a competitive advantage in the market. On the other hand, smaller companies can often be more nimb
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