Global industrial manufacturing M&A deals insights: 

Q3 2016 update
 

Executive summary

The following is an analysis of global industrial manufacturing deals with disclosed value greater than $50 million.

Global Industrial Manufacturing M&A deal value for the first nine months of 2016 decreased 10% compared to the first nine months of 2015. This was driven by a 22% decrease in volume period over period. 

When comparing Q3 2016 vs. Q2 2016 there was double digit growth in both deal value and volume. The current quarter was highlighted by 58 deals announced with a total disclosed value of $20.3 billion compared to 49 deals announced with total disclosed value of $12.3 billion in Q2, resulting in an 18% and 65% increase, respectively.

The largest deal announced in Q3 2016 was the deal between Emerson and Pentair PLC-Valves & Controls Business ($3.2 billion).

In Q3 2016, financial investor participation rates decreased to levels not seen since late 2013, with a deal value participation rate of 17% and deal volume participation rate of 21%.

The improvement in deal activity in Q3 2016 may be a sign that deal makers’ economic and geopolitical concerns, both in the US and globally, have begun to subside. We are cautiously optimistic that Q4 2016 and fiscal 2017 will continue to be a good environment for deal makers.

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

industrial manufacturing deal disclosed value

Key trends/highlights

  • Deal value for the first nine months of 2016 vs. the same period of 2015 was $64.8 billion and $72.4 billion, respectively, a 10% decline.
  • Deal volume for the first nine months of 2016 saw 155 deals compared to 199 in the same period of 2015, a 22% decline.
  • Deal value increased in Q3 2016 to $20.3 billion, a 65% increase from Q2 2016. 
  • There were five large deals ($1 to $5 billion) in Q3 2016 with total aggregate deal value of $9.9 billion, representing 45% of total deal value for the period.
  • Q3 2016 deal activity was highlighted by the Emerson Electrics’ acquisition of Pentair PLC-Valves & Controls Business ($3.2 billion) and Gree Electric Appliances’ acquisition of Zhuhai Yinlong Energy ($2.4 billion).
  • For Q3 2016 Industrial Machinery and Fabricated Metal Products sub-sectors continue to account for the bulk of total deal value with $6.8 billion and $4.4 billion of deal value, respectively.
  • Deal activity in Q3 2016 was dominated by strategic investors, as they drove 83% and 79% of transactions in both deal value and volume, respectively.

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: Q3 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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