Mergers and acquisitions in the Mechanical Engineering sector in 2024
In the first half of 2024, the global mechanical engineering sector has shown resilient demand, although M&A activity has seen a slight decline. During this period, 82 M&A deals were recorded, representing a decrease of 11.8% compared to the previous year. However, strategic acquisitions have been the main driver of this activity, accounting for 61% of total transactions. As for trading multiples over EBITDA, these have increased compared to 2023, reaching a value of 5.6x.
Overview of the mechanical engineering sector in the Iberian Peninsula
Within the mechanical engineering sector in the Iberian region, one of the most relevant transactions in fiscal year 2024 was the acquisition of Navacel by Grupo Amper. Grupo Amper, a Spanish company specialized in telecommunications solutions, acquired 100% of Navacel, a company specialized in the manufacture of capital equipment, steel machining and fabrication for the global offshore wind energy and offshore oil and gas markets. The total value of the transaction amounted to 23.8 million euros.
From a valuation perspective, estimated EV/EBITDA multiples for 2024 stand at 5.4x in the machine tool segment and 5.8x for the forging and stamping sector. These metrics reflect the attractiveness of the sector and its growth potential, driven by demand for advanced precision manufacturing solutions and technological evolution in industrial production.
Download the Iberian M&A Report - Mechanical Engineering Sector
A complete report on trends in the mechanical engineering sector. Our team of experts in the M&A area at PKF Attest has been analyzing for several years the evolution of this sector detecting trends, data, sector movements, EBITDAs...
Trends and prospects for the sector
The global precision manufacturing market continues to evolve with digitalization and automation as key factors to improve operational efficiency and competitiveness. In the Iberian Peninsula, interest in the modernization of the industry and the adoption of advanced technologies, such as additive manufacturing and robotics, continues to grow.
As companies seek to improve their positioning in the industrial value chain, mergers and acquisitions will continue to be a key strategy for consolidating capabilities and expanding markets. Factors such as the growth of the renewable energy sector, especially offshore wind energy, and the rise of smart manufacturing will play a crucial role in the evolution of the mechanical engineering sector in the region.
In conclusion, although M&A activity in precision manufacturing has shown a slight slowdown in terms of transaction volume, strategic acquisitions and rising multiples indicate a dynamic market with significant investment and growth opportunities in the coming years.
