Industry Trends
Largest Transactions Closed
- Target
- Buyer
- Value($mm)
Advised Western Milling in their sale to the Western Milling ESOP Trust
Executive Summary
M&A activity in the Power & Energy sector slowed further in Q3 2025, with 258 transactions closed in the last twelve months (LTM), down from 323 in the prior year. Strategic buyers drove 78.3% of transactions, financial buyers 19.0%, and undisclosed buyers 2.7 %. This reflects a market still focused on consolidation and scale, even amid weak volume. Despite fewer deals, valuations remain resilient: the median TEV/EBITDA edged up to 10.73× (from 10.67×), and the median TEV/Revenue increased to 3.68× (from 3.34×). Buyers continue to compete aggressively for high-quality, contracted, and strategically important assets.1
Market Dynamics
Deal activity in Power & Energy declined 20.1% year-over-year. This continues the multi-year downtrend from the 2022 peak of 456 deals. High financing costs, regulatory uncertainty, and delays in grid interconnections and equipment supply have elevated execution risk and tempered deal activity. However, higher valuation multiples show a “flight to quality”: acquirers are paying up for assets with long-term contracts, regulated revenue, or strategic positioning in energy transition and reliability.1
Buyer Landscape
Strategic Acquirers: Leading with 202 deals (78.3%), strategic buyers targeted pipeline, energy transition, and grid infrastructure assets to corner critical capabilities in transmission and distribution. A signature deal was Brookfield Infrastructure Partners L.P.’s ~$9 billion acquisition of Colonial Enterprises, enhancing its pipeline/infrastructure footprint.1
Financial Buyers: Closed 49 deals (19.0%), with sponsors favoring regulated utility carve-outs and stable cash flows. The top financial deal was Bernhard Capital Partners’ acquisition of Entergy New Orleans’ gas business for $286 million.1
Industry Comparison
The sector’s ~20.1 % drop in deal volume is steeper than in many resilient sectors, but the presence of several large-scale strategic deals underscores that infrastructure imperatives (pipeline, grid, firm power) still override broad market caution. Rising or stable multiples suggest a bifurcation: premium, lower-risk assets attract aggressive bids; the broader field sees limited appetite.6
Geographic Expansion
Top U.S. States: Deal flow was concentrated in Texas (51 deals), California (22), and New York (10), reflecting a mix of oil & gas, renewables integration, and grid modernization in those states.1
Cross-Border Trends: Though most deals remained domestic, international capital continues to participate. Notable cross-border or foreign buyer activity includes Brookfield (Canada) acquiring Colonial, Rosebank Industries plc (UK) acquiring Electrical Components International, and Partners Group (Switzerland) investing in U.S. power platform deals.1
Notable Transactions
Largest Transactions Closed
| Target | Buyer | Value ($mm) |
| Colonial Enterprises, Inc. | Brookfield Infrastructure Partners L.P. | $9,000.00 |
| ChampionX Corporation | Schlumberger Limited | $8,634.25 |
| Electrical Components International, Inc. | Rosebank Industries plc | $2,028.89 |
| Four natural gas power generation facilities | CPS Energy, Inc. | $1,387.00 |
| Midland Basin gas gathering assets of Occidental Petroleum Corporation | Enterprise Products Partners L.P. | $580.00 |
| US Synthetic Corporation | USS HardTech, LLC | $300.00 |
| Gas Business of Entergy New Orleans, LLC | Bernhard Capital Partners Management, LP |
$285.50 |
| BridgeTex Pipeline Company, LLC | ONEOK, Inc. | $270.00 |
| Regulated Natural Gas Local Distribution Company Business of Entergy Louisiana, LLC | Delta North Louisiana Gas Company, LLC | $198.00 |
| Resilient Power Systems, Inc | Eaton Corporation plc | $150.00 |
Other Financial Buyer Transactions Closed
| Target | Buyer | Value ($mm) |
| Advanced Digital Cable LLC | Undisclosed | n/a |
| PowerTransitions LLC | Partners Group Holding AG (SWX:PGHN) | n/a |
| Copperweld Bimetallics, LLC | Rhone Group L.L.C. | n/a |
| Interconnect Solutions Company, LLC | Cogenuity Partners, LLC | n/a |
| Centerline Logistics Corporation | Maritime Partners, LLC | n/a |
Other Strategic Buyer Transactions Closed
| Target | Buyer | Value ($mm) |
| Servotronics, Inc. | TransDigm Group Incorporated (NYSE:TDG) | $123.88 |
| Roundhouse Electric & Equipment Co., Inc. | Longhorns Acquisition LLC | $22.35 |
| Heliogen, Inc. | Zeo Energy Corp. (NasdaqCM:ZEO) | $12.38 |
| ResMetrics, LLC | NCS Multistage Holdings, Inc. (NasdaqCM:NCSM) | $7.20 |
| Ocean State Oil, Inc. | RelaDyne, LLC. | n/a |
Source S&P Capital IQ as of 10/2/2025 and PCE Proprietary Data
Emerging Trends
Key trends shaping Power and Energy M&A:
- Grid Modernization & T&D Upgrades
Utilities are accelerating investment to relieve congestion, modernize networks, and support load growth, creating demand for M&A in grid equipment and service companies.4 - AI / Data Center Power Demand
Surging demand from hyper scalers is pushing buyers toward firm generation and grid interface assets.5 - Supply Chain and Equipment Constraints
Transformer and critical component scarcity is reshaping timelines, forcing prioritization of companies with supply chain strength.3 - Sponsor Focus on Regulated & Contracted Platforms
Private capital increasingly favors cash flows insulated from merchant exposure for lower underwriting risk.6 - Subsector Spotlight: Power Generation
This subsector is a focal point of M&A as utilities and investors seek to balance reliability with decarbonization. Assets with flexible generation capabilities that can support intermittent renewables are commanding premium valuations.7 - Subsector Spotlight: Energy Equipment & Services
Consolidation continues among service providers as companies aim to offer integrated solutions. Deals are focused on acquiring specialized technologies and expanding service offerings to support efficiency, from drilling to renewable project development.8
Outlook for Next Quarter
Opportunities: The acceleration of electrification, data center buildouts, and renewed federal infrastructure funding will likely sustain strategic demand for transmission, storage, and firm power assets.2
Risks: Execution risk is high. With permitting delays, interconnection backlogs, equipment supply constraints, and policy shifts, tariffs could substantially slow or scuttle deals.3
Predicted Activity: Expect continued divestitures of non-core assets by large corporations seeking to streamline their portfolios. Private equity firms, armed with significant dry powder, are expected to remain active, pursuing take-private deals and forming strategic partnerships to fund large-scale energy infrastructure projects.5
PCE Transactions
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