Mergermarket has released its Global Industrials M&A Trend report for the first quarter (Q1) of 2015.
· Following a spike in Industrial M&A in 2014 (US$ 157bn, 1896 deals), which saw the highest deal count for the sector since the 1,905 deals in 2007, it was predicted that 2015 will bring similar results. However, Q1 2015 failed to deliver, registering only 374 deals valued at US$ 28.3bn, a 17.8% drop in deal count and a 44.3% decrease in deal value from the previous quarter
· Consequently, Q1 saw the lowest number of deals since Q1 2011 (US$ 38.1bn, 365 deals), when the Industrial sector was only beginning to show signs of recovery following the recession
· The automation (US$ 722m and 34 deals in Q1 2015) and the electronics sub-sectors (US$ 1.5bn, 47deals) were affected the most, losing more than 75% of their value and close to 30% of their deal count since Q4 last year. The largest automation deal so far in 2015 was the acquisition of Distech Controls, a Canadian developer of building automation systems, by US-based Acuity Brands for US$ 252m