Merger and acquisition activity in the industrial manufacturing sector is primarily being driven by the need to strengthen core competencies and the desire to increase market share and expand into new geographical markets.
We have initiated and completed transactions for companies ranging from foundries casting metal, to forges, general machining companies and electronic equipment businesses, serving end markets including automotive, marine, power, energy and oil and gas as well as aerospace & defence and general industrial.
Common characteristics of businesses involved in transactions in this sector are:
- high capital expenditure
- significant investment in R&D
- asset rich factories
- manufacturing processes that require skilled personnel.
The main drivers of merger and acquisition activity in this area are:
- the need to realise economies of scale
- the evolution of the supply system
- a decision to specialise in a particular activity
- the internationalisation of business
- general consolidation.
Our knowledge of industrial manufacturing worldwide combined with our relationships with businesses active in the sector enable us to pursue optimum outcomes for our clients.