Engineering growth: Fourth-quarter 2013 engineering & construction industry mergers and acquisitions analysis

February 2014
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Engineering growth: Fourth-quarter 2013 engineering & construction industry mergers and acquisitions analysis

At a glance

Merger and acquisition deal size in the engineering and construction industry remained steady as the year ended. Emerging markets continued to lead, but buyers and sellers exercised more caution. The construction materials segment continued the consolidation trend, especially in concrete and cement sectors.

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Explore the data

Engineering growth is a quarterly analysis of global merger and acquisition (M&A) activity in the engineering & construction industry. Each edition includes an overview of M&A results for the quarter, the significant drivers of these results, and expectations for deal activity in the quarters to come. 

Global engineering and construction industry M&A analysis: Q4 2013

Our analysis reveals that deal activity in the engineering and construction (E&C) industry rebounded in the fourth quarter of 2013, boding well for increased M&A activity in 2014. Fourth-quarter deal volume and value increased to 48 transactions (with values of $50 million or more) totaling $13.2 billion, compared to 41 deals worth $10.6 billion in the third quarter of 2013. There was also a slight uptick in average deal size ($276 million) compared to the previous quarter ($259 million).

Following are a few more highlights from the report:

  • Despite the reduced overall level of activity in 2013, deal size remained steady and was more diversified across industries than the prior year
  • Emerging markets continued to be the main drivers of global growth, but potential acquirers were more cautious as they reassessed the magnitude of the deceleration in Asia
  • Transactions in the construction materials category led early in the year, continuing the 2012 trend of consolidation of the cement and concrete sectors
  • Acceleration of activity is expected among home builders following the Toll Brothers acquisition of California-based Shapell Industries

Download the latest Engineering growth report to read more about the Q4 2013 results.

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