The Diversified Industrials sector closed 1,415 transactions (LTM) in Q1 2025, reflecting a modest increase from 1,372 deals in Q1 2024, but below the peak of 1,762 in Q1 2022. Strategic buyers drove 88.3% of transactions, while financial buyers accounted for 11.7%, consistent with longer-term trends. Valuations continued to compress, with median TEV/EBITDA at 10.4x and TEV/Revenue at 1.6x, down from 12.1x and 1.7x in Q1 2024. M&A volume was supported by reshoring trends, digital transformation, and manufacturing reinvestment driven by policy and tariffs.
Valuations trended downward YoY, with TEV/EBITDA declining to 10.4x and TEV/Revenue to 1.6x, reflecting normalized investor sentiment after 2022–2023 highs. Buyers are increasingly targeting companies with digital capabilities, supply chain resiliency, and regulatory tailwinds. Industrial acquirers are repositioning portfolios around reshoring, infrastructure, and automation, amid global economic recalibration and volatile input pricing.1 2 4
Strategic Acquirers: Strategic buyers accounted for 1,250 of 1,415 transactions (88.3%), with activity focused on automation, digital manufacturing, and vertical integration. Notable deals included EMCOR’s $865M acquisition of Miller Electric Company and Symbotic’s $550M acquisition of Walmart’s robotics unit.
Financial Buyers: Financial sponsors represented 165 deals (11.7%), with a focus on platforms in component manufacturing, energy equipment, and precision machining. Firms like Bain Capital Credit and Nonantum Capital pursued opportunities to scale within industrial and logistics verticals.
Diversified Industrials represented 10.2% of overall M&A volume, a slight decline from its peak but still a key contributor to overall deal flow. The sector is outperforming tech and consumer discretionary segments in valuation stability and deal consistency, driven by its foundational role in infrastructure, logistics, and reshoring. Investors continue to prioritize supply chain-adjacent targets and digitally-enabled operations, supporting steady multiples despite cyclical pressures.
Top U.S. States: California (111), Florida (102), and Texas (124) led transaction volume, consistent with their concentration of manufacturing, logistics, and diversified industrial activity.
Cross-Border Trends: Domestic activity remained dominant, but cross-border interest was sustained, particularly from European buyers targeting U.S. suppliers with exposure to clean manufacturing and supply chain technology.3
| Target | Buyer | Value ($mm) |
| Barnes Group Inc. | Apollo Global Management, Inc. | $3,600.00 |
| Miller Electric Company, Inc. | EMCOR Group, Inc. | $865.00 |
| Motivair Corporation | Schneider Electric S.E. | $850.00 |
| Walmart Advanced Systems | Symbotic Inc. | $550.00 |
| Berry Specialty Tapes, LLC | Nautic Partners, LLC | $540.00 |
| Target | Buyer | Value ($mm) |
| Nexans AmerCable | Mattr Corp. | $280.00 |
| Moser Engine Service, Inc. | Atlas Energy Solutions Inc. | $221.00 |
| Manitex International, Inc. | Tadano Ltd. | $216.00 |
| Florida Can Manufacturing, LLC | Ball Corporation | $160.00 |
| Target | Buyer | Value ($mm) |
| All Glass & Windows Holdings | Cross Rapids Capital LP | n/a |
| Dun-Rite Machining, Inc. | Fresh Water Ventures | n/a |
| MSI Express, Inc. | Nonantum Capital Partners, LLC | n/a |
| Gavitt Wire and Cable Co. | Weinberg Capital Group | n/a |
Source S&P Capital IQ as of 4/17/2025 and PCE Proprietary Data
Key trends shaping Diversified Industrials M&A:
Opportunities: Domestic policy (IRA, CHIPS, IIJA) continues to drive manufacturing reinvestment, with M&A expected to rise across packaging, contract manufacturing, and industrial automation. Tariffs on foreign components are further boosting domestic consolidation, encouraging investment in local supply chains and warehousing.2 1
Risks: Persistent supply chain gaps, inflation, and retaliatory tariffs—especially from China—may raise input costs for OEMs. Industrial firms remain vulnerable to price shocks in energy, steel, and electronic components, limiting expansion in cost-sensitive verticals.4 5
Predicted Activity: Middle-market transactions will dominate, with financial buyers doubling down on platform roll-ups in packaging, metal fabrication, and logistics infrastructure. Strategic buyers will continue portfolio rotation in energy transition and smart factory solutions.1 5
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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