Studies & Reports
Global industrial manufacturing sector M&A volume significantly up
By Mary Del
The merger and acquisition (M&A) deal activity in the global industrial manufacturing (IM) industry showed marked improvement from the first quarter of 2010, with an increase in both deal volume and value in the second quarter of 2010, according to the PricewaterhouseCoopers LLP report, Assembling value: Second-quarter 2010 global industrial manufacturing mergers and acquisitions analysis.
In the second quarter of 2010, there were 33 announced deals worth $50 million US or more, which is more than double the 14 deals announced in Q1 2010. Deal value totalled $8.5 billion US in Q2, more than triple the $2.3 billion US in value announced in Q1 2010. Additionally, both deal volume and value saw an increase in a year-over-year basis, up from 12 deals with a total value of $3.2 billion US in Q2 2009.
Driving this activity, as global economic trends continue to improve, are smaller deals and transactions with undisclosed values, which stays on par with historical trends. However, middle-market, large and mega-deal activity continues to increase, and the near-term outlook points to sustained growth, the report says. Showcasing this trend are the two mega-deals (transactions of $1 billion or more) in Q2 2010, compared to Q1 2010 when no mega-deals were announced, and all of 2009 when only one mega-deal was announced.
For information on the full report, including the special section on capturing synergies to maximize deal value, visit the industrial manufacturing industry website at www.pwc.com/us/industrialproducts.
(c) 2010 PricewaterhouseCoopers LLP. All rights reserved.