Industrials Strength: Acceleration in Global Industrials M&A

Jul 2024

Lincoln Industrials closed 28 transactions globally thus far in 2024. Across our industrials offering – from aerospace and defense to mobility, engineered components to building products, and infrastructure to specialty chemicals – our expertise has catalyzed growth and innovation for our clients.

In the below perspective, Lincoln International outlines several subsectors where our advisory professionals are seeing strong deal activity.

Summary

  • Lincoln's Industrials Group outlines momentum of global M&A transactions in various sectors, showcasing expertise and contribution to client growth and innovation.

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Power

The power sector is experiencing record growth and mergers and acquisitions (M&A) activity driven by greater electricity demand; aging infrastructure and grid hardening; generation mix shift including rapid growth in renewable energy; expanding distributed energy resources; electrical infrastructure for data centers and the electrification of everything.

Building Products

The tide is turning in building products M&A in 2024, offering investors attractive end-market dynamics after 18+ months of uncertainty. Though the adjustment to higher interest rates has taken time, the industry has found its footing given low levels of inventory for new residential construction, building deferred project activity for residential repair and remodel markets and continued GDP growth supporting nonresidential construction activity.

Leonard Green Partners TenCate Grass Holding B.V. Crestview Partners 2024

Tools

Continued reshoring of manufacturing has buoyed the tools industry due to increased demand for high-quality, locally produced equipment. This trend has sparked investments and innovation in tool manufacturing, facilitating sector growth. The growth of automation directly benefits the CNC world and high-precision manufacturing by enhancing production efficiency and achieving unparalleled accuracy in component fabrication.

What does H2 2024 have in store for Industrials?

Inflation is causing input costs to rise, posing challenges and necessitating consistent adjustments to customer pricing. While many companies have successfully passed along these price increases, there has often been a timing lag resulting in short-term margin contraction.

Amidst recent periods of economic uncertainty, Lincoln observes businesses focusing efforts on operational efficiency, driving long-term sustainable growth and harnessing technological advancements – a positive sign for future M&A activity.

Connect with a Lincoln industrials expert below to learn how we can partner to take your business to its next success.

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