GCG’s Q2 2021 Industrials Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.
Key findings include the following:
- In Q2 2021, public equities across most of the Industrials sector remained relatively flat and in line with the broader public equity market as measured by the S&P 500, with the exception of a few segments that either declined or experienced slight upticks.
- The volume of M&A activity in the Industrials sector trended down slightly in Q2 2021 with 289 deals closed, versus 298 during the previous quarter. However, the average deal value (based on reported transaction value) increased meaningfully, signaling that the market is continuing to pursue larger deals as the M&A environment remains strong.
- The General Industrial Manufacturing category led M&A activity, accounting for 26.2% of total Industrials transaction volume. The Polymers, Chemicals & Plastics segment continued to experience strong activity recording 21.4% of the total transaction volume
- Based on a representative set of publicly-traded companies in the Industrials sector, public companies traded at an average multiple of 15.3x EBITDA and 2.3x revenue.
Click here for the full update.