Industrials M&A Update

RESOURCE HIGHLIGHTS

• In Q1, the S&P 500 Industrials Index increased by 4.1%, and outperformed a 4.6% decrease in the S&P over the same period.
• The median EV/EBITDA multiple for reported private equity deals in the Industrials sector increased to 18.7x in Q1 2026 from 9.0x in 2025, but decreased for strategic deals to 10.2x from 10.9x in the prior year.
• M&A deal volume in the sector increased 10.0% in Q1 to 583 deals from 530 deals in Q4, and increased 33.4% from 437 deals in Q1 of the prior year.
• Europe was the most active region in Q1 with 244 deals in the sector. Most notably in Europe was Apollo Global Management’s $2.3 billion acquisition of Kelvion, a German-based manufacturer of industrial heat exchangers.
• Total capital invested in M&A transactions increased 145.3% in Q1 to $93.7B from $38.2B in Q4, primarily due to Toyota Motor’s $37.4 billion acquisition of Toyota Industries, an automotive components and industrial equipment supplier.