M&A activity in the diversified industrials sector remained strong in Q2 2025, with transaction volume reaching a five-year high of 1,434 deals in the LTM period. Valuation multiples showed modest improvement, with median TEV/EBITDA rising to 11.15x and TEV/Revenue increasing to 1.74x—signaling renewed buyer confidence amid stabilizing market conditions. Strategic buyers continued to dominate the landscape, accounting for over 85% of total deal flow. Notable megadeals and continued geographic breadth underscored the sector’s attractiveness. Looking ahead, consolidation, operational synergies, and international interest are expected to sustain healthy momentum into the second half of 2025.
Q2 2025 saw continued resilience in the diversified industrials space, with deal volume reaching 1,434—up slightly from the prior year. Median TEV/EBITDA multiples edged up to 11.15x, while revenue multiples rose to 1.74x, reflecting renewed appetite for quality assets. Strategic buyers led activity, targeting companies with strong operational fundamentals and scalable platforms. Investors favored consolidation plays and defensible market positions amid ongoing macroeconomic uncertainty.
Strategic Acquirers: Strategic buyers remained the dominant force in Q2 2025, accounting for 87% of closed transactions (1,219 of 1,398) in the LTM period. Activity was broad-based, with heightened interest in industrial automation, packaging, and building products. Buyers focused on vertical integration, supply chain efficiencies, and category leadership, underscoring a continued push for scale and resilience.
Financial Buyers: Financial sponsors represented 13% of deal flow (179 of 1,398) in the LTM period, maintaining a disciplined investment approach. Target selection favored asset-light models, proven EBITDA performance, and opportunities for bolt-on acquisitions. Sponsors showed strong interest in engineered components and niche manufacturing, where growth and value creation potential aligned with fund strategies.
Diversified Industrials continued to demonstrate resilience amid macroeconomic uncertainty, with M&A activity benefiting from stable demand in infrastructure and manufacturing subsegments. However, valuation multiples moderated slightly due to rising interest rates and cautious buyer sentiment, reflecting broader market volatility. Compared to high-growth tech and healthcare sectors, the industrials space remains steady with strong focus on operational efficiencies and supply chain optimization.1 2
Top U.S. States: Texas led all states with 136 transactions, followed by California (119) and Florida (99), reflecting strong deal flow in industrial hubs with robust infrastructure and manufacturing bases.
Cross-Border Trends: U.S.-based targets continued to attract steady international interest, with cross-border buyers pursuing scale, innovation, and strategic footholds in key U.S. markets.
| Target | Buyer | Value |
| WestRock Company | Smurfit Westrock Plc | $21.3B |
| Berry Global Group, Inc. | Amcor plc | $18.0B |
| Beacon Roofing Supply, Inc. | QXO, Inc. | $11.4B |
| Pactiv Evergreen Inc. | Novolex Holdings, LLC | $7.1M |
| Encore Wire Corporation | Prysmian S.p.A. | $4.8M |
| Target | Buyer | Value |
| H&E Equipment Services, Inc. | Herc Holdings Inc. | $3.9B |
| Barnes Group Inc. | Apollo Global Management, Inc. | $3.6B |
| Copeland LP | Blackstone Inc.; GIC Private Limited; Abu Dhabi Investment Authority | $3.4B |
| Sundyne LLC | Honeywell International Inc. | $2.2B |
| Battery Cell Plant located in Lansing, Michigan of Ultium Cells LLC | LG Energy Solution, Ltd. | $2.1B |
| Target | Buyer | Value |
| Berry Specialty Tapes, LLC | Nautic Partners, LLC | $540M |
| Airtron Heating & Air Conditioning, Inc. | Gamut Capital Management, L.P. | $500M |
| Wilsonart International Holdings, LLC | Clayton, Dubilier & Rice, LLC | $398M |
| Milacron LLC | Bain Capital Credit, LP | $286M |
| Crane Composites, Inc. | KPS Capital Partners, LP | $208M |
Source S&P Capital IQ as of 7/7/2025 and PCE Proprietary Data
Opportunities: Growing infrastructure investments under federal programs are expected to stimulate M&A in construction and heavy equipment sectors, with strategic buyers seeking scale and innovation.8
Risks: Inflationary pressures and rising raw material costs may constrain margins, impacting deal valuations and deal flow.9
Predicted Activity: Expect elevated PE activity focusing on platform builds in niche industrial automation and ESG-compliant manufacturing firms, coupled with selective divestitures by conglomerates streamlining portfolios.10
Michael Rosendahl |
Ken Sommers |
Michael Poole |
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Data Assumptions This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only. Glossary EBIT - Earnings Before Interest and Taxes Sources:
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