Industrial Services M&A Update

RESOURCE HIGHLIGHTS

• In Q1, the S&P 500 Industrial Services Index decreased by 1.4%, but outperformed a 4.4% decrease in the S&P 500 over the same period.
• No EV/EBITDA or EV/Revenue multiples were reported in the industrial services sector during this period.
• M&A deal volume in the Industrial Services sector decreased 19.4% in Q1 to 145 deals from 180 in Q4 of 2024, and decreased 27.5% from 200 deals in Q1 of the prior year.
• As a % of total capital invested in M&A transactions in the sector, PE participation increased significantly in Q1 to 90.4% from 58.3% in 2024.
• North America was the most active region in Q1 with 84 deals. Most notably in North America was Permira’s $1.8 billion acquisition of Encore Fire Protection, a Rhode Island-based provider of fire protection services, in January 2025.