Global industrial manufacturing M&A deals insights: 

Q4 2016 update
 

Executive summary

The following is an analysis of Global Industrial Manufacturing deals with disclosed values greater than $50 million.

The Global Industrial Manufacturing sector closed 2016 with two strong quarters of deal activity. The deal market in the first half of 2016 was suppressed primarily due to geopolitical concerns such as Brexit, slowing growth in China, and the impending US presidential election.

Although 2016 finished strong, deal value ended down 3% and volume ended down 18% compared to 2015, principally driven by the softness in the deal market in the first half of the year.

The largest deal in 2016 was valued at $22.7 billion, which occurred in Q1 of 2016. This drove the average deal size to $404 million from $342 million in 2015.

With two consecutive quarters of improved deal activity (both value and volume), we are optimistic 2017 will likely be a good environment for deal makers. The speculation of reduced tax rates, infrastructure investment, health care reform, and reduced government regulation in the US are positive factors for many deal makers. Further, similar to 2016, deal making in 2017 will be driven by inorganic growth strategies focused on product and service differentiation through access to new markets, customers, and technologies.

industrial manufacturing deal value and volume
industrial manufacturing deal value and volume data
industrial manufacturing deal disclosed value

Key trends/highlights

  • Aggregate disclosed deal value for 2016 vs. 2015 was $91.3 billion and $93.7 billion, a 3% decrease.
  • Deal volume decreased by 18% in 2016 vs. 2015, with 226 vs. 274 total deals, respectively.
  • M&A activity showed signs of continued comeback as Q4 2016 had 65 deals with a total aggregate disclosed value of $25.1 billion vs. 60 deals and $20.2 billion of aggregate disclosed value in Q3 2016.
  • There were three transactions exceeding $1 billion in Q4 by financial buyers with a total aggregate value of $9.2 billion, 37% of total value for the period.
  • M&A activity continues to be driven by deals in the Industrial Machinery subsector. Value increased 6% compared to 2015 and doubled compared to Q3 2016. This was the only category that recorded year-over-year growth and contributed to 59% of deal value and 41% of deal volume in 2016.
  • Asia & Oceania remains as the region with the highest M&A activity. In 2016, acquirers in the region accounted for 41% of deal value and 61% of volume.

For our full report and additional information on the Top 10 Deals announced for the year, our regional and subsector analyses, and the Outlook for this sector, please remember to download our:

Global Industrial Manufacturing M&A Deals Insights: Q4 2016 update.

Contact us

Paul Elie
Industrial Products Deals Leader
Tel: +1 (313) 394 3517
Email

Bobby Bono
US Industrial Manufacturing Leader
Tel: +1 (704) 350 7993
Email

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