PwC: Industrial Products M&A Activity Increases Modestly

By Rob Starr, Content Manager, Big4.com

According to a series of quarterly M&A reports released recently  by PwC ,  overall merger & acquisition (M&A) activity in the global industrial products (IP) industry rose modestly on a sequential basis during the fourth quarter of 2012.

Across the entire IP industry, there were 238 transactions worth $50 million or more, totaling $89.1 billion in the fourth quarter of 2012, compared to 164 deals and $84 billion in total value during the third quarter of 2012. In the fourth quarter of 2011, there were 191 announced transactions, totaling $74 billion in total value. Looking at the full year, there were 789 transactions worth $50 million or more, totaling $333.7 billion in 2012, down from 846 deals and $383.1 billion in total value during 2011.

While Asia and Oceana remained the most active region, the U.S. performed well in select IP sectors, with local deals driving the majority of activity PwC reports. There were 163 local transactions worth $50 million or more totaling $75.5 billion in the U.S. during 2012, up from 157 such deals totaling $40.9 billion in 2011. The majority of growth came in the fourth quarter, with the number of local U.S. deals rising to 52.

M&A market activity increased sequentially in the fourth quarter of 2012 in several sectors including A&D, metals, transportation & logistics and engineering & construction. The increase in M&A activity in the metals market was particularly notable, with both total transaction value and average deal value more than doubling over the third quarter of 2012 according to PwC.