The latest issue of our Cold Chain HVACR Industry Report, highlighting trends in M&A, financing, IPOs and capital markets for private and public companies in the HVACR sector, is now available. 

Highlights from this report include:

  • Rapid market growth expected. Cold storage is estimated to grow at a fast clip through 2020, reaching $118bn in global demand and registering a 9.8% CAGR. Creating a global footprint is the key theme for acquisitions in the space as companies continue to aggressively build out worldwide infrastructure.
  • Increased consolidation to gain market share. Since 2012, the top 20 acquirers in the space have completed 80 acquisitions, with 25% of transactions occurring in 2016, making it difficult for smaller players to compete. Average multiples have remained steady since 2012, with transactions trading at 0.9x EV/Rev LTM and 6.1x EV/EBITDA LTM on average.
  • Environmental regulations enforce changes in manufacturing processes. EPA and DOE regulations pose a challenge for cold storage as the agencies continue to impose increasingly stringent environmental controls. This is heating up as new regulations go into effect this year.