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Capstone Partners Reports: Industrials M&A Gains as Industry Players Navigate Shifting Economy

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Capstone Partners has released its Annual Industrials M&A Report, revealing key insights into the sector's performance in 2024. The U.S. economy saw GDP growth of 2.8%, slightly down from 2.9% in 2023, primarily due to slower business investment.

Notable findings include:

  • Construction spending rose 4.3% YOY to $2.2 trillion, driven by Infrastructure Investment and Jobs Act
  • Strategic transactions dominated with 58.6% of deals, while private equity buyers accounted for 41.4%
  • M&A valuations averaged 9.0x EV/EBITDA, with the Dow Jones Industrial Average ending at 16.4x EV/EBITDA
  • Engineered Products (18.1x) and HVAC (17.1x) sectors showed strong performance, while Metals (7.5x) and Chemicals (7.3x) faced pressure

Capstone Partners ha pubblicato il suo Rapporto Annuale sulle M&A nel settore Industriale, rivelando importanti informazioni sulle performance del settore nel 2024. L'economia statunitense ha registrato una crescita del PIL del 2.8%, leggermente in calo rispetto al 2.9% del 2023, principalmente a causa di un rallentamento degli investimenti aziendali.

Tra i risultati più significativi troviamo:

  • La spesa per costruzioni è aumentata del 4.3% YOY a $2.2 trilioni, sostenuta dall'Infrastructure Investment and Jobs Act
  • Le transazioni strategiche hanno dominato con il 58.6% degli affari, mentre gli acquirenti di private equity hanno rappresentato il 41.4%
  • Le valutazioni delle M&A hanno avuto una media di 9.0x EV/EBITDA, con il Dow Jones Industrial Average che ha chiuso a 16.4x EV/EBITDA
  • I settori dei Prodotti Ingegnerizzati (18.1x) e HVAC (17.1x) hanno mostrato buone performance, mentre i Metalli (7.5x) e le Chimiche (7.3x) hanno subito pressioni

Capstone Partners ha publicado su Informe Anual sobre M&A en el sector Industrial, revelando información clave sobre el desempeño del sector en 2024. La economía de EE. UU. vio un crecimiento del PIB del 2.8%, ligeramente por debajo del 2.9% en 2023, principalmente debido a una desaceleración en la inversión empresarial.

Los hallazgos notables incluyen:

  • El gasto en construcción aumentó un 4.3% interanual a $2.2 billones, impulsado por la Infrastructure Investment and Jobs Act
  • Las transacciones estratégicas dominaron con el 58.6% de los acuerdos, mientras que los compradores de capital privado representaron el 41.4%
  • Las valoraciones de M&A promediaron 9.0x EV/EBITDA, con el Dow Jones Industrial Average cerrando en 16.4x EV/EBITDA
  • Los sectores de Productos Ingenierizados (18.1x) y HVAC (17.1x) mostraron un fuerte desempeño, mientras que Metales (7.5x) y Químicos (7.3x) enfrentaron presiones

Capstone Partners는 2024년 산업 부문 성과에 대한 주요 통찰력을 드러내는 연례 M&A 보고서를 발표했습니다. 미국 경제는 2.8%의 GDP 성장을 기록했으며, 이는 2023년의 2.9%에서 소폭 감소한 수치로, 주로 기업 투자 둔화에 기인합니다.

주목할 만한 발견 사항은 다음과 같습니다:

  • 건설 지출이 전년 대비 4.3% 증가하여 2.2조 달러에 이르렀으며, 이는 인프라 투자 및 일자리 법안에 의해 추진되었습니다.
  • 전략적 거래가 58.6%의 비율로 지배했으며, 사모펀드 구매자는 41.4%를 차지했습니다.
  • M&A 가치 평가는 평균 9.0x EV/EBITDA였으며, 다우 존스 산업 평균은 16.4x EV/EBITDA로 마감했습니다.
  • 엔지니어링 제품(18.1x)과 HVAC(17.1x) 부문은 강한 성과를 보였고, 금속(7.5x)과 화학(7.3x) 부문은 압박을 받았습니다.

Capstone Partners a publié son Rapport Annuel sur les M&A dans le secteur industriel, révélant des informations clés sur la performance du secteur en 2024. L'économie américaine a enregistré une croissance du PIB de 2.8%, légèrement en baisse par rapport à 2.9% en 2023, principalement en raison d'un ralentissement des investissements des entreprises.

Les résultats notables incluent :

  • Les dépenses de construction ont augmenté de 4.3% en glissement annuel pour atteindre 2.2 trillions de dollars, soutenues par l'Infrastructure Investment and Jobs Act
  • Les transactions stratégiques ont dominé avec 58.6% des accords, tandis que les acheteurs de capital-investissement représentaient 41.4%
  • Les évaluations des M&A ont en moyenne été de 9.0x EV/EBITDA, avec le Dow Jones Industrial Average se terminant à 16.4x EV/EBITDA
  • Les secteurs des Produits Ingénierisés (18.1x) et HVAC (17.1x) ont montré de bonnes performances, tandis que les Métaux (7.5x) et les Produits Chimiques (7.3x) ont subi des pressions

Capstone Partners hat seinen Jahresbericht über M&A im Industriesektor veröffentlicht, der wichtige Einblicke in die Leistung des Sektors im Jahr 2024 bietet. Die US-Wirtschaft verzeichnete ein BIP-Wachstum von 2.8%, leicht zurückgegangen von 2.9% im Jahr 2023, hauptsächlich aufgrund langsamerer Unternehmensinvestitionen.

Bemerkenswerte Ergebnisse umfassen:

  • Die Bauausgaben stiegen um 4.3% im Jahresvergleich auf 2.2 Billionen Dollar, angetrieben durch das Infrastructure Investment and Jobs Act
  • Strategische Transaktionen dominierten mit 58.6% der Deals, während Private-Equity-Käufer 41.4% ausmachten
  • M&A-Bewertungen lagen im Durchschnitt bei 9.0x EV/EBITDA, wobei der Dow Jones Industrial Average bei 16.4x EV/EBITDA endete
  • Die Sektoren für Ingenieurprodukte (18.1x) und HVAC (17.1x) zeigten eine starke Leistung, während Metalle (7.5x) und Chemikalien (7.3x) unter Druck standen
Positive
  • Construction spending growth of 4.3% YOY to $2.2 trillion
  • Strong strategic M&A activity with 58.6% of total deals
  • Dow Jones Industrial Average valuations increased to 16.4x from 14.7x
  • High valuations in Engineered Products (18.1x) and HVAC (17.1x) sectors
Negative
  • GDP growth declined to 2.8% from 2.9% in 2023
  • Overall M&A valuations decreased to 9.0x EV/EBITDA
  • Private equity participation declined to 41.4% from 43.7%
  • Supply chain disruptions from midyear port strikes
  • Valuation gap stalling transactions due to seller pricing expectations

BOSTON, March 18, 2025 /PRNewswire/ -- Capstone Partners, a leading middle market investment banking firm, released its Annual Industrials M&A Report, which shares insights into public market valuations, the macroeconomic climate, merger and acquisition (M&A) activity, and an outlook for 2025 industry activity. With extensive knowledge and transaction experience, Capstone Partners' Industrials Investment Banking Team provides unique commentary on nine key sectors: Chemicals, Engineered Products, Environmental Health & Safety, HVAC, Industrial & Environmental Services, Metals Manufacturing, Packaging, Precision Manufacturing, and Waste & Recycling.

The U.S. Industrials industry navigated a complex macroeconomic environment in 2024, shaped by evolving construction trends, Labor market dynamics, inflationary pressures, monetary policy adjustments, and geopolitical uncertainties. In 2024, the U.S. economy experienced a slight deceleration, with real gross domestic product (GDP) growing 2.8%, down from 2.9% in 2023. This moderation was primarily due to a slowdown in business investment, particularly in equipment spending. Despite this, consumer spending remained a strong driver of economic growth, with Personal Consumption Expenditure (PCE) Price index increasing 5.3% YOY fueled by rising incomes and improving Labor market conditions. The midyear port strikes in key global trading hubs disrupted supply chains and led to higher transportation and logistics costs. These strikes caused delays in the shipment of goods, increased backlogs, and created uncertainty for industries dependent on imports, such as Retail, Manufacturing, and Automotive. As a result, many companies faced inventory shortages, production slowdowns, and increased costs, exposing the overall fragility of global supply chains. The slowdown in inventory accumulations and a decrease in imports partially offset positive contributions to GDP growth from government spending. Construction spending remained a key driver, rising 4.3% YOY to $2.2 trillion, with significant spending from the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) fueling demand for roads, bridges, and energy projects, according to the U.S. Census Bureau.1

Private equity firms played an active role in the Industrials M&A market, leveraging uninvested capital to pursue platform and add-on acquisitions. However, geopolitical uncertainties, a strict regulatory environment, and supply chain disruptions continued to influence strategics' M&A decisions within the Industrials industry. Strategic transactions commanded the majority (58.6%) of 2024 deals, while financial buyers prevailed despite difficulties securing debt financing and banks demonstrating caution underwriting large deals. Private equity buyers accounted for 41.4% of deal activity versus 43.7% in 2023. At the same time, sellers were slow to adjust pricing expectations, leading to a valuation gap that stalled transactions.

Industrials M&A experienced a shift in valuations, reflecting a dynamic interplay of market forces and bullish investor sentiment. M&A valuations fell compared to the prior year, averaging 9.0x EV/EBITDA. The Dow Jones Industrial Average ended the year at 16.4x EV/EBITDA, up more than a full turn from 2023's average of 14.7x EV/EBITDA, with Engineered Products (18.1x) and HVAC (17.1x) capitalizing on upward market trends and finishing among the top of Capstone's coverage areas' indices. M&A pricing for high-demand segments buoyed the industry as sticky customer bases and accretive innovation transactions provided attractive opportunities for growth and diversification for acquirers. However, cyclical segments like Environmental Health & Safety (11.6x) and commodity-based manufacturing such as Metals (7.5x) and Chemicals (7.3x) faced pressure.

Also included in this report:

To access to full report, click here.

ABOUT CAPSTONE PARTNERS

For over 20 years, the firm has been a trusted advisor to leading middle market companies, offering a fully integrated range of investment banking and financial advisory services uniquely tailored to help owners, investors, and creditors through each stage of the company's lifecycle.  Capstone's services include M&A advisory, debt and equity placement, corporate restructuring, special situations, valuation and fairness opinions and financial advisory services.  Headquartered in Boston, the firm has 175+ professionals in multiple offices across the U.S. With 12 dedicated industry groups, Capstone delivers sector-specific expertise through large, cross-functional teams.  Capstone is a subsidiary of Huntington Bancshares Incorporated (NASDAQ:HBAN).  For more information, visit www.capstonepartners.com.

Cision View original content:https://www.prnewswire.com/news-releases/capstone-partners-reports-industrials-ma-gains-as-industry-players-navigate-shifting-economy-302404854.html

SOURCE Capstone Partners

FAQ

What were the key M&A valuation metrics for industrials sector in 2024?

M&A valuations averaged 9.0x EV/EBITDA, with Dow Jones Industrial Average at 16.4x EV/EBITDA, up from 14.7x in 2023.

How did strategic vs private equity buyers compare in 2024 industrial M&A?

Strategic buyers dominated with 58.6% of deals, while private equity buyers accounted for 41.4%, down from 43.7% in 2023.

Which industrial sectors showed the highest valuations in 2024?

Engineered Products (18.1x EV/EBITDA) and HVAC (17.1x EV/EBITDA) were the top performers.

What was the total construction spending growth in 2024?

Construction spending increased 4.3% year-over-year to $2.2 trillion, driven by Infrastructure Investment and Jobs Act.

Which industrial sectors faced valuation pressure in 2024?

Commodity-based manufacturing sectors including Metals (7.5x) and Chemicals (7.3x) faced valuation pressure.
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