Lithium Prices Dip Nearly 20% Since January
The price of lithium, a key material in electric vehicle batteries, has declined by nearly 20% since January, despite analysts’ expectations for prices to stay high. Some analysts attribute the price drop to short-term factors like slowing sales growth in electric vehicle sales, while others suggest that new mines and processing plants have solved the lithium problem. Additionally, the U.S. government has allocated billions of dollars to encourage the development of lithium mines and refineries.1
Falling Oil Prices Continue to Decline Through Q1
Oil futures saw further drops after the largest weekly decline of 2023, with West Texas Intermediate (WTI) crude down 1.3% to $65.85 a barrel and Brent crude down 1% to $72.21 a barrel. Economic weakness due to banking jitters and oversupply concerns contribute to the pressure. Goldman Sachs has lowered its outlook for WTI and Brent crude for the next year, citing higher-than-expected inventories and moderately lower demand. Market uncertainty remains as the Federal Reserve’s fight against inflation continues to develop.2
U.S. Manufacturing PMI Beats Preliminary Estimates
U.S. manufacturing PMI rose to a five month high of 49.1 in March 2023.The index is up from 48.4 in December 2022, but still below 50, indicating a contraction in the sector. There was an increase in production and a softer fall in new orders, while inflationary pressures eased due to lower supplier price hikes and moderation in raw material costs. Suppliers' delivery times improved remarkably, allowing firms to replenish stocks and work through backlogs, and employment continued to rise modestly.3
Abandoned Hard Rock Mines Become More Costly
New restrictions and legislation may be on the horizon for hard rock mining on federal land, as abandoned mines lead to serious environmental concerns. The federal government has taken responsibility for the cleanup costs of abandoned mines, among others, which has increased federal environmental liabilities by over 32% since 2017. Federal agencies are urging congress and the public to understand these mines' financial and environmental liabilities.4
Largest Transactions Closed
- Altra Industrial Motion Corp.
- Regal Rexnord Corporation
- Wittichen Supply Company Inc.
- Beijer Ref AB
- HydraForce, Inc.
- Bosch Rexroth AG
- Liqui-Box Corporation
- Sealed Air Corporation
- Air Treatment business of SPX FLOW, Inc.
- Ingersoll Rand Inc.
- Storage Solutions, Inc.
- Jungheinrich Aktiengesellschaft
- Metal-Fab, Inc.
- Olympic Steel, Inc.
- Schultes Precision Manufacturing, Inc.
- Helios Technologies, Inc.
- Noltex Holdings, Inc.
- Builders FirstSource, Inc.
- Paragon Tank Truck Equipment, LLC
- Ingersoll Rand Inc.
Other Financial Buyer Transactions Closed
- Garlock Pipeline Technologies, Inc.
- Branford Castle Partners, L.P.
- Martin Pallet, Inc.
- Burlington Capital Partners LLC
- Kubota of Omaha
- LDI Ltd., LLC
- JM Test Systems, Inc.
- Kanbrick LLC
- Container Services, Inc.
- Shore Capital Partners, LLC
- Magnum Systems, Inc.
- 3 Rivers Capital, LLC
- Womack Machine Supply Co.
- PRV Management, LP
- Buse Timber & Sales, Inc.
- Lynx Equity Limited
- Oceanwide Repair, LLC
- Fletch Equity
- FloWorks International, LLC
- Wynnchurch Capital, L.P
Other Strategic Buyer Transactions Closed
- LED Supply Co., LLC
- Applied UV, Inc.
- West Coast Aluminum & Stainless, LLC
- Hakudo USA Inc.
- Texas Precious Metals LLC
- A-Mark Precious Metals, Inc.
- NRG Equipment LLC
- Titan NRG Inc.
- Empire Drone Company, LLC
- Volatus Aerospace Corp.
- Freedom Holdings, Inc.
- Medcann Industries, Inc.
- Digested Organics LLC
- Mott Corporation
- Triangle Landscape Supplies, Inc.
- SiteOne Landscape Supply, Inc.
- Northern Sound & Light, Inc.
- AlarMax Distributors, Inc.
- AddiFab Inc.
- Nexa3D Inc.
Source S&P Capital IQ as of 4/10/2023 and PCE Proprietary Data
This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.
EBIT - Earnings Before Interest and Taxes