2018年-普华永道全球_Global_industrial_manufacturing_deals_insights_Q1_2018_6页_1mb

PwC Deals Summary: Global Industrial Manufacturing Q1 2018

Core Content

This report provides insights into the global Industrial Manufacturing (IM) M&A activity in Q1 2018, highlighting trends, deal values, and regional activity. It also outlines the outlook for 2018 and the role of PwC in advising on M&A strategies.

Key Findings

Deal Activity Overview

• Total deal value: $20.5 billion in Q1 2018, a 6% decrease from Q1 2017 and a 10% decrease from Q4 2017.
• Total deal volume: 591 deals in Q1 2018, 9% lower than Q1 2017 and 12% lower than Q4 2017.
• Average deal size: $84 million, a 4% decrease from Q1 2017 and 9% decrease from Q4 2017.

Megadeals

• No megadeals were announced in Q1 2018.
• Megadeals are defined as transactions with disclosed value of $5 billion or more.
• Since Q1 2016, there has been a dry spell in megadeals in the sector, unlike other sectors that saw six megadeals between 2014-2015 with a total value of $47.8 billion.

Largest Transactions

• Spectrum Brands’ $3.6 billion merger with HRG Group was the largest deal in Q1 2018.
• Other notable deals include:
  • A pending sale of Spectrum's battery business to Energizer Holdings for $2 billion.
  • Compagnie Generale des Etablissements Michelin SCA’s $1.7 billion acquisition of Fenner PLC.

Sector Category Analysis

• Electronic and Electrical Equipment was the most active category, with 4 of the top 10 deals.
• Rubber and Plastic Products also showed increased activity.
• Industrial Machinery experienced a decline, but was partially offset by growth in other categories.

Investor Activity

• Strategic investors dominated deal activity, accounting for 74% of the deal value and 64% of the deal volume.
• Financial investors had a smaller share, indicating increased corporate interest in M&A.

Regional Activity

• Asia and Oceania was the most active region in terms of deal volume (40%).
• North America accounted for 29% of the volume but 59% of the deal value, the highest among all regions.
• The US tax reform is believed to be contributing to increased deal value in North America, with 9 of the top 10 deals involving a US participant.

Outlook for 2018

• While megadeals have not yet returned, the positive GDP growth outlook and low cost of borrowing suggest a favorable environment for deal making.
• The lower deal volume may reflect increased conservatism due to US tax reform, political uncertainty, and the potential global trade war.
• The report remains optimistic about deal activity in the sector for the remainder of 2018.

Enablers for Deal Making

Supply Side

• Many large industrials have announced strategic realignment, leading to future divestitures.
• Lower tax costs to divest will increase the supply of assets for sale.

Demand Side

• Global GDP growth is expected to be around 3%, providing a strong foundation for deal making.
• High share values may encourage the use of stock as currency.
• Repatriation and lower corporate tax rates will increase capital availability.
• The "full expensing" provision of the new tax code is expected to shift focus towards asset deals.
• Technological change and the need for innovation will continue to drive M&A activity.

Top 10 Industrial Manufacturing Deals Q1 2018

About PwC Deals Practice

• PwC's Deals group provides M&A advisory services to Industrial Manufacturing companies and private equity firms.
• They offer services including deal identification, due diligence, transaction structuring, and post-deal integration.
• With over 20,000 practitioners globally, PwC can provide local market expertise and industry-specific knowledge to support deal execution.

Contact Information

• Paul Elie: US Industrial Manufacturing Deals Leader, Detroit, Michigan
• Bobby Bono: US Industrial Manufacturing leader, Tampa, Florida
• Barry Misthal: Global Industrial Manufacturing leader, Lausanne, Switzerland

Data Sources

• The data is sourced from Thomson Reuters and includes transactions with SIC codes in 111 industrial manufacturing groups.
• Adjustments were made to exclude non-specific transactions and include relevant ones not captured by SIC codes.
• The report includes all types of transactions (mergers, acquisitions, divestitures, etc.) with statuses such as completed, pending, and pending regulatory.