Industrial M&A Update
- Deal volume in the Industrial sector continued its upward momentum in Q2 2021 at 384 deals. YTD volume through 1H 2021 is up 102% to 791 completed transactions from 392 deals in the same period of the prior year.
- Despite of the increase in deal volume, total capital invested in the Industrial sector declined from prior year levels as the mix shifted to a larger % of smaller deals compared to prior year.
- Through 1H 2021, PE investors contributed 41.5% of total capital invested compared to 58.5% for strategic buyers in the Industrial sector.
- The $3.1 billion public-to-private LBO on May 25, 2021 of Cubic Corp by Veritas Capital, Evergreen Coast Capital Corp and Elliott Management represented the largest completed transaction this quarter.
- Valuation multiples on M&A transactions have trended higher in Q2 2021 from prior year levels.