Corporate Finance

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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.

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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.

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The mergers and acquisitions (M&A) market in the packaging industry: trends and prospects for 2024 and beyond.

In the first half of 2024, a decline in mergers and acquisitions (M&A) transactions was observed in the packaging industry. However, due to the growing need for companies in the sector to adapt to regulatory changes related to sustainable packaging, a significant uptick in M&A activity is expected in the coming years. This outlook is driven by stringent environmental regulations and increasing consumer expectations around sustainability.

Indicators of a growing market

Notably, EBITDA trading multiples have increased compared to the second half of 2023, reaching 8.6x in the first half of 2024. This increase reflects the renewed interest in companies with the ability to innovate and adapt to a constantly evolving market.

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The packaging industry in the Iberian Peninsula: outstanding operations

In the Iberian packaging market, one of the most relevant deals in the fourth quarter of 2024 was the acquisition of Alucan Entec, a company specialized in the manufacture of aluminum containers and bottles, by Ball Corporation, a leading U.S. manufacturer of metal packaging. This transaction was worth 82 million euros, marking an important milestone in the sector.

EV/EBITDA multiples in the packaging industry during 2024 show material-specific trends:

  • Plastic: 8.1x
  • Paper and cardboard: 10.1x

These multiples reflect the valuation of companies with a clear focus on sustainability and technological innovation, key factors for standing out in today's competitive market.

Factors driving the growth of M&A in the packaging industry

The future of the M&A market in the packaging industry looks promising thanks to several key trends:

  1. Sustainability regulations: Legislation at the European level, such as the directive on packaging and packaging waste, is driving companies to invest in greener technologies and materials.
  2. Technological innovation: The development of reusable, biodegradable and recyclable packaging increases the attractiveness of companies leading this change.
  3. E-commerce growth: The expansion of e-commerce continues to generate increased demand for efficient and sustainable packaging solutions.
  4. Market consolidation: Large companies seek to strengthen their position through strategic acquisitions, especially in high-potential regions such as the Iberian Peninsula.

Conclusion

The packaging industry is at a crucial moment of transformation. Mergers and acquisitions will play a key role in adapting to new regulations and market demands. Companies such as Ball Corporation and Alucan Entec are examples of how the market continues to evolve towards more sustainable and cost-effective solutions.

As companies continue to adapt, interest in the packaging sector in the Iberian Peninsula and globally will continue to grow, consolidating itself as a strategic market in the coming years.

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Global chemical industry resumes growth in 2024 after two years of decline

The global chemical industry has shown clear signs of recovery during the first half of 2024, after facing two consecutive years of contraction. This positive change is reflected in a slight but significant increase in merger and acquisition transactions, marking a revival of dynamism in this key sector for the global economy.

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Increase in chemical sector EBITDA multiples

One of the metrics highlighting this recovery is the increase in EBITDA trading multiples, which reached 18.4x during the second quarter of 2024. This figure slightly exceeds the values observed in the same period of 2023, evidencing greater investor confidence in the chemicals sector and a more favorable valuation of companies in global markets.

Major operation in the Spanish chemical sector

The fourth quarter of 2024 brought with it an emblematic operation in the Iberian chemical sector: the ADI Group, based in Spain and recognized for its leadership in the production and distribution of chemical products, acquired WET (World Elastomers Trade). WET is a company specialized in the marketing of specialty chemicals, which is a strategic move to strengthen ADI's position in the elastomers and specialties segment. This agreement not only reflects the company's interest in expanding markets, but also its commitment to innovation and diversification in its product offering.

Change in EV/EBITDA multiples by sub-sector

EV/EBITDA multiples for fiscal 2024 have significant variations depending on the chemical sub-sector. Performance by key categories is detailed below:

> Agrochemicals: x11.7

> Flavors and fragrances: x16,5

> Inks and coatings: x9.3

> Carbon and composite materials: x5.5

> Chemical specialties: x6.6

> Polymers: x9.8

These figures reflect both global trends and segment-specific dynamics, with notable performance in flavors and fragrances, driven by growing demand in the food and cosmetics industries.

Outlook for the future

Factors such as innovation in sustainable materials, the transition to greener processes and economic recovery in key markets could continue to strengthen the sector in 2025.

The transaction between ADI Group and WET stands out as an example of the transformative potential of strategic mergers and acquisitions in the chemical industry environment.

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Global automotive industry trends in the first half of 2024

The automotive industry faced significant challenges in the first half of 2024, mainly marked by a decrease in consumer demand for different types of vehicles. This scenario has directly impacted market activity, reflected in a lower number of mergers and acquisitions (M&A) transactions compared to the same period in 2023.

Financial indicators

In terms of financial indicators, EBITDA trading multiples showed a decrease compared to the previous half year, standing at x6.7 during the second quarter of 2024. This behavior reflects a market characterized by challenging conditions and increased caution on the part of investors and companies in the sector.

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Dynamics of the Spanish automotive sector

In the Iberian region, the automotive sector was highlighted by the acquisition of AKT Plásticos by Cie Automotive. Cie is a Spanish company known for its dedication to the manufacture of automotive components, while AKT Plásticos specializes in thermoplastic injection molding. This agreement highlights the trend towards greater specialization and consolidation in the sector.

Therefore, for the remainder of the year, EV/EBITDA multiples for 2024 are expected to be as follows:

> Multiproduct: x4.0

> Engines: x3.5

> Chassis: x4.7

> Finishes: x4.3

These multiples reflect significant differences between the different areas of the sector, highlighting the particularities and opportunities of each segment.

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Strategic investors at the forefront of operations in the global pharmaceutical sector

In the global healthcare sector, strategic investors are positioned at the forefront of deal activity, with a clear focus on acquiring both capacity and innovation. During the first half of 2024, a slight decrease in global mergers and acquisitions (M&A) activity was observed compared to the second half of 2023. This behavior reflects a cautious M&A environment, with investors preferring to wait for potential interest rate cuts before committing to significant transactions.

Despite this caution, EBITDA trading multiples increased compared to the previous half-year, driven by relevant industry trends. This phenomenon highlights the resilience of the sector and its ability to adapt to macroeconomic challenges.

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Dynamics in the Iberian region


In the Iberian pharmaceutical sector, there was significant activity on the part of private equity funds. One of the most significant transactions in fiscal 2024 was the acquisition of a minority stake in Grifols by Flat Footed, a US investment management firm. This deal, valued at approximately 111 million euros, underlines the continued attractiveness of healthcare assets in the region for international investors.

In terms of EV/EBITDA valuation multiples, the healthcare sector averaged 12x, while the veterinary sector stood at 10.5x for fiscal 2024, reflecting differences in market dynamics and growth expectations within the two segments.

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