This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
This Website Uses Cookies
By closing this message or continuing to use our site, you agree to our cookie policy. Learn More
This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
Quality Magazine logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Quality Magazine logo
  • Home
  • The Magazine
    • Current Issue
    • Digital Edition
    • Archives
    • How To Guide
    • Industry News
    • Subscribe
  • Web Exclusives
    • Blogs
    • NDT Exclusives
    • Quality Exclusives
    • Vision & Sensors
  • New Products
  • Channels
    • Management
    • Measurement
    • NDT
    • Quality 101
    • Software
    • Test & Inspection
    • Vision & Sensors
  • Markets
    • Aerospace
    • Automotive
    • Electronics
    • Energy
    • Green Manufacturing
    • Medical
    • Plastics
  • More
    • Leadership 100 Survey
    • Plant of the Year
    • Professional of the Year
    • Job Board
    • White Papers
    • Quality Store
    • Software Downloads
    • eCards
    • Product Spotlights
    • Industry Links
    • Sponsor Insights
    • Market Research
  • Multimedia
    • eNewsletter
    • Podcasts
    • Videos
    • Webinars
    • Showcases
    • Image Galleries
    • Interactive Spotlights
  • Events
    • IMTS
    • Event Calendar
    • Quality Show
  • InfoCenters
    • Manage Quality, Risk & Compliance
    • Material Science Quality within Microscopy
    • Modern Quality Control with SPC
    • Process Control in Manufacturing
  • Directories
    • Buyers Guide
    • NDT Sourcebook
    • Take a Tour
  • Contact
    • Contact Us
    • Advertise
Home » Global Industrial Manufacturing Sector M&A Activity Shows Strong Momentum in Q2 2010
Industry Headlines

Global Industrial Manufacturing Sector M&A Activity Shows Strong Momentum in Q2 2010

August 13, 2010
Reprints
No Comments

NEW YORK-The merger and acquisition (M&A) deal activity in the global industrial manufacturing (IM) industry showed marked improvement from the first quarter of 2010, with an increase in both deal volume and value in the second quarter of 2010, according to the PricewaterhouseCoopers LLP report, Assembling value: Second-quarter 2010 global industrial manufacturing mergers and acquisitions analysis.

In the second quarter of 2010, there were 33 announced deals worth $50 million or more, which is more than double the 14 deals announced in Q1 2010. And, deal value totaled $8.5 billion in Q2, more than triple the $2.3 billion in value announced in Q1 2010. Additionally, both deal volume and value also saw an increase in a year-over-year basis, up from 12 deals with a total value of $3.2 billion in Q2 2009.

Driving this activity, as global economic trends continue to improve, are smaller deals and transactions with undisclosed values, which stays on par with historical trends. However, middle-market, large and mega-deal activity continues to increase and the near-term outlook points to sustained growth. Showcasing this trend are the two mega-deals (transactions of $1 billion or more) in Q2 2010, compared to Q1 2010 when no mega-deals were announced and the entirety of 2009 when only one mega-deal was announced.

"Looking ahead, we expect the deal environment will continue to improve as credit access eases, equity markets advance and economic growth rates stabilize. However, although many factors have improved, others remain weak, such as stubbornly high levels of unemployment and weak residential construction activity," said Barry Misthal, U.S. industrial manufacturing leader, PricewaterhouseCoopers. "Nevertheless, we believe that buyers are becoming increasingly optimistic in their near-term economic outlooks."

Transactions including U.S. targets and/or buyers continued to drive deal activity during Q2 2010 with 36% of the total transactions over $50 million involving a U.S. entity. This compares with an average of 61% over the past 4 years (2006-2009). Additionally, the level of activity affiliated with BRIC (Brazil, Russia, India, China) countries grew with China serving as the key driver. This contributed to targets located in Asia and Oceana taking the lead in deal activity, as 45% of all transactions valued at $50 million or more were announced in the region. Capturing Synergies to Maximize Deal Value

The second quarter Assembling value report takes a closer look at the importance of the merger integration planning process, especially in today's recovering economy. Industrial manufacturing (IM) companies must balance a desire to quickly reach the finish line with a need to systematically leverage synergies and contain costs.

Because the IM industry was hit hard by the recession, opportunities to acquire undervalued assets abound. However, organizations focused on outpacing their competitors through acquisitions can lose sight of the deal's objectives during the often difficult integration phase.

Closing deals is tough, but capturing deal value is even tougher, according to the report. In some ways, deciding whether to go forward with a merger or acquisition is the easy part, and the act of "owning" after the transaction is complete is the real challenge. In the end, the market will reward or punish shareholders of the combined company depending on how well its management succeeds at achieving stated deal objectives. For this reason, it is imperative that synergies are realized, deal value is captured, and the resulting performance is communicated to all those with a stake in the outcome.

For information on Assembling value and to access the full report, including the special section on capturing synergies to maximize deal value, visit the industrial manufacturing industry website at http://www.pwc.com/us/industrialproducts.  

subscribe to Quality Magazine

Related Articles

China Leads Increased Interest in Q2 in Industrial Manufacturing M&A Activity

Industrial Manufacturing M&A Activity Rebounds in Third Quarter

Industrial Manufacturers Show Confidence in a Sustained Recovery in 2010

PwC: Global Industrial Manufacturing M&A Value Increases 70% in Second Quarter of 2011

You must login or register in order to post a comment.

Report Abusive Comment

Subscribe For Free!
  • Print & Digital Edition Subscriptions
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • Mobile Help

More Videos

Popular Stories

Lean manufacturing

Lean In to 5S

Automation in manufacturing

Automated Metrology: Manufacturing Trend of the Future

RoyalPower

Royal Power Solutions Opens Innovation Center

ASNT

ASNT Annual Conference Brings NDT to Las Vegas

EdmundsED

Edmund Optics Announces 2019 Educational Award, Norman Edmund Award Recipients

Quality Leadership 100 Survey

Poll

Topics to Talk About

What topics would you like to see Quality cover more?
View Results Poll Archive

Products

Quality Brain Teasers: Real World Challenges to Build Your Manufacturing Skills (ebook)

Quality Brain Teasers: Real World Challenges to Build Your Manufacturing Skills (ebook)

Assessments and Training in the following areas...

See More Products

SoftwareDownloads

Quality Magazine

Quality December 2019

2019 December

Check out the December 2019 edition of Quality: Quality 4.0 for medical device manufacturing, automated metrology, gage trends, plastics, materials analysis and much more!
View More Create Account
  • Resources
    • Market Research
    • Custom Content & Marketing Services
    • List Rental
    • Partners
    • Manufacturing Group
    • Polls
    • Privacy Policy
    • Survey and Sample
  • Want More
    • Connect

Copyright ©2019. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing