Deals in the global industrial manufacturing sector slowed in the third quarter 2008, according to the recent PricewaterhouseCoopers’ report, Assembling Value: Industrial Manufacturing Mergers &Acquisitions Analysis -Third Quarter 2008.
The number of third-quarter deals with a value of at least $50 million will not match last year’s level of 207, but will approach the number announced in 2006, 169. The total value of deals announced in the third quarter, $35 billion, is behind last year’s $88 billion at this time. This is due to a drop in large deals of more than $1 billion. Tight credit markets are mostly to blame for the decline in large-deal volume.
Interest in industrial machinery targets continued to lead activity in industrial manufacturing M&A, making up 42% of deals announced in the first nine months of 2008. Movement in this area can be attributed to high levels of fragmentation in the industry. Middle-market announcements drove improvements in deal values in Rubber and Plastic Products, and Electronic and Electrical Equipment segments.
The average deal value overall was $277 million, down from $425 million last year. No deals valued at more than $1 billion were announced in the third quarter; four large deals have been announced since the beginning of the year. Middle-market deals (defined as deals between $100 million and $1 billion) continued, with 25 announced in the third quarter.
Regionally, Asia and Oceania, UK and Eurozone, and North America led as target markets, making up 87% of all deals by number and 89% of deals by value. China continues to experience consolidation in the industrial manufacturing industry.
Industrial Manufacturing M&A Slows in 3Q
Deals in the global industrial manufacturing sector slowed in the third quarter 2008, according to the recent PricewaterhouseCoopers' report, Assembling Value: Industrial Manufacturing Mergers &Acquisitions Analysis -Third Quarter 2008.
The number of third-quarter deals with a value of at least $50 million will not match last year's level of 207, but will approach the number announced in 2006, 169. The total value of deals announced in the third quarter, $35 billion, is behind last year's $88 billion at this time. This is due to a drop in large deals of more than $1 billion. Tight credit markets are mostly to blame for the decline in large-deal volume.
Interest in industrial machinery targets continued to lead activity in industrial ...
The number of third-quarter deals with a value of at least $50 million will not match last year's level of 207, but will approach the number announced in 2006, 169. The total value of deals announced in the third quarter, $35 billion, is behind last year's $88 billion at this time. This is due to a drop in large deals of more than $1 billion. Tight credit markets are mostly to blame for the decline in large-deal volume.
Interest in industrial machinery targets continued to lead activity in industrial ...
Share this article
- Filed In: Subscriber Only, Research & Analytics, News, Free, Economic Trends
About the Author
Recommended Reading
Leave a Reply
Log In
Read the latest articles and see your reports.
Popular Now
MDM Directories
Sign Up for the MDM Update Newsletter
The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.