Remarks
Industrials Defy Deal Doldrums With Strategic Acquisitions
Higher borrowing costs have slowed private equity transactions, making takeover prices more attractive.
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Dealmaking is off to a slow start this year, because of rising interest rates and brewing economic concerns, but there’s one niche that’s booming: industrial takeovers of industrial assets.
So far in 2023, manufacturing and materials companies have proposed or announced deals valued at more than $110 billion for businesses that operate under the industrial umbrella, according to data compiled by Bloomberg. The second quarter is already the busiest period in a decade for acquisitions of that kind involving at least one North American company, apart from some outliers that were dominated by a single, blockbuster transaction.