Industrials M&A Update
- Deal volume in the Industrials sector declined 9.6% in Q1 to 461 transactions from 510 in Q4 2021. However, compared to 407 deals in Q1 of the prior year, deal volume was up 13.3% year-over-year.
- The Industrials industry index declined 5.8% in Q1 2022 and underperformed the S&P 500 index, which decreased 5.6% in the same period.
- Total capital invested decreased 30.9% in Q1 2022 to $17.2B from $24.9B in Q4 but increased 104.8% from $8.4B in the same period of the prior year.
- Faurecia’s $6 billion acquisition of Hella, a German-based manufacturer of electronic auto components, represented the largest transaction in the sector in Q1 2022.
- In Q1 2022, valuation multiples generally trended higher while stock prices declined after peaking in the second half of Q4 2021.