The biggest of the Biggest Deals

Last year’s market for mergers and acquisitions slowed drastically in the second half of the year as interest rates rose and worries about the economy caused buyers to pull back and wait. But that doesn’t mean there weren’t some blockbuster deals. Here’s a look at the ve largest. The full list of Michigan’s Biggest Deals of 2022 starts on Page 11.

1Faurecia buys Hella, takes a new name: Two global auto suppliers with local North American headquarters joined when Faurecia acquired a controlling stake in lighting supplier Hella in a deal valued at $5.95 billion. The company later changed its name to Forvia.

M&A

From Page 8

M&A usually lulls in the beginning of the year due to a typical rush to close deals by the end of the year, Helminski said, but he isn’t sure when deals will pick back up.

“It feels like a softer start to the year than we’ve had historically,” Helminski said. “I do think it’s a bit of a question mark at this point.”

DeVito said he doesn’t expect the spigot to stay o for long. He said he has 10 active deals in the pipeline, on par with volume pre-COVID.

Even though capital is substantially more expensive than a year ago, deals are stacking up and likely to land with more frequency as the year goes on, he said.

“ e ones that tested the market in the fourth quarter and weren’t getting valuations that they wanted, they’re turning around and putting them back on the market in Q3, is what we’re hearing,” DeVito said. “ ey refresh the books and go back out to market.”

2Cummins adds Meritor: Industrial giant Cummins Inc. bought Troy-based for $3.8 billion to gain axle and brake technology for hybrid and electric power applications. The deal was completed in August.

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Aptiv’s tech deal: Aptiv PLC entered an agreement to acquire software maker Wind River Systems from private equity rm TPG Capital L.P for $3.5 billion. Alameda, Calif.-based Wind River, formed in 1983, develops software and cloud systems for several industries, including automotive, aerospace, defense and telecommunications. posal maker InSinkErator Inc. from Emerson Electric Co. for $3 billion.

Another dynamic, especially for manufacturers, is that the smoothing of the supply chain is expected to spur more deals. e volatility hasn’t stopped some big players from making moves — the biggest deals of 2022 are mostly in the manufacturing and auto sectors, including Faurecia’s $5.95 billion takeover of Hella, which topped the list.

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Garbage disposal addition: Benton Harbor-based appliance maker Whirlpool Corp. bought Wisconsin-based waste dis-

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Health tech in focus: Kalamazoo-based medical device maker Stryker Corp. acquired digital health technology company Vocera Communications Inc. for $2.99 billion, expanding its portfolio in a growing sector of health care.

MERGERS & ACQUISITIONS

But many companies are still dealing with supply chain disruptions and nancial anomalies over the past couple years, making it di cult to market their company for sale. Buyers want balance sheet consistency before pulling the trigger, DeVito said, and the next few quarters could bring that.

“My read on it, starting mid-2023 into 2024, as this supply chain disruption resolves itself, you’re going to see a number of automotive suppliers go to market,” he said.

Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl

Swiss company Holcim will buy Michigan PVC roo ng rm Duro-Last Inc. for nearly $1.3 billion.

| DURO-LAST INC.

Holcim buys Saginaw roo ng maker for $1.3B

CATHERINE KAVANAUGH PLASTICS NEWS

Swiss company Holcim will buy Michigan PVC roo ng rm DuroLast Inc. for nearly $1.3 billion. DuroLast generates net sales of about $540 million in North America’s highly pro table $40 billion roo ng market.

e world’s biggest cement maker, Switzerland’s Holcim Ltd., will acquire Saginaw-based Duro-Last Inc., a producer of single-ply roo ng systems that has seen double-digit growth, for $1.29 billion to strengthen its building product o ering.

Founded in 1976 as Tri-City Vinyl, the acquired company started out making pool liners. Two years later, owner John R. Burt found a new application: commercial roo ng systems. He grew the business with product innovations like factory-welded seams to reduce the potential for leaks. e pending transaction comes on the heels of three other acquisitions that support Holcim’s expansion into the North American roo ng market. In 2021, Holcim posted net sales of 26.8 billion Swiss francs ($29.87 billion). e company has 70,000 employees.

Duro-Last generates net sales of about $540 million in North America’s highly pro table $40 billion roofing market, according to a news release. e deal is expected to close by early in the second quarter of 2023. Duro-Last’s systems will complement Holcim’s integrated roo ng products and are expected to create synergies of $60 million per year, the release also says.

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MERGERS & ACQUISITIONS IN 2022