Industrials M&A Update

RESOURCE HIGHLIGHTS

• In Q3, the S&P 500 Industrials Index increased by 12.4% and outperformed the S&P 500, which increased by 5.3% over the same period.
• The median EV/EBITDA multiple for reported private equity deals decreased to 11.01x in YTD Q3 from 11.89x in 2023, but increased for strategic deals to 7.21x from 6.75x in the prior year.
• M&A deal volume in the Industrials sector increased 4.6% in Q3 to 428 deals from 409 deals in Q2, and increased 1.2% from 423 deals in Q3 of the prior year.
• As a % of total capital invested in M&A transactions, PE participation decreased YTD through Q3 to 19.6% from 39.3% in 2023.
• Europe was the most active region in Q3 with 185 deals. Most notably in Europe was Apollo Global Management and Rettig’s $425.7 million leveraged buyout of Purmo Group, a Finnish manufacturer of indoor climate solutions, in August 2024.