Last Updated: March 25, 2026

85+ Manufacturing M&A Statistics for 2025-2026

Global M&A deal value surged 40% in 2025, reaching an estimated $4.9 trillion. Manufacturing and industrials played a central role in that rebound. From the $88 billion Union Pacific-Norfolk Southern rail merger to hundreds of mid-market automation acquisitions, the manufacturing sector saw more deals, at higher valuations, than at any point since 2021.

We compiled over 85 data points from PwC, Bain & Company, KPMG, McKinsey, EY, Dealogic, R.L. Hulett, and other authoritative sources. This resource covers manufacturing industry M&A deal activity, EBITDA and revenue multiples by subsector, private equity trends, top deals and megadeals, AI-driven acquisitions, and post-merger success rates. Whether you're a buyer, seller, or advisor, every statistic links to its original source.

1. Global M&A Market Overview

Before diving into manufacturing-specific data, here's where the overall M&A market stands. These numbers provide context for why industrial dealmaking is accelerating.

• • Global M&A deal value hit an estimated $4.9 trillion in 2025, up 40% from the prior year, making it the second-highest year on record. (Bain & Company)
• • Deal volume grew 7% globally in 2025, with similar gains across strategic, private equity, and venture capital acquirers. (Bain & Company)
• • US M&A deal volume reached approximately $2.3 trillion in 2025, with deals over $100 million up 9% year-to-date. (Harvard Law School Forum)
• • In 2024, total global M&A deal value rose 12% to $3.4 trillion, while the number of companies changing hands increased 8% to 7,784 transactions. (McKinsey)
• • Average global deal value rose 4% in 2024, reaching $443 million per transaction, up from $424 million in 2023. (McKinsey)
• • Midsize deals (valued between $1 billion and $10 billion) accounted for 46% of global M&A activity in 2024, up from 41% in 2023. (McKinsey)
• • Megadeals greater than $5 billion represented more than 73% of incremental deal value in 2025's rebound. (Bain & Company)
• • Despite the rebound, M&A as a share of GDP remained near 30-year lows. The relative share of capital allocated to M&A sat at just 7% in 2025. (Bain & Company)
• • Nearly 59% of the most confident CEOs planned to pursue a transaction within 12 months of September 2024, compared to just 16% of the least confident CEOs. (EY Parthenon)

2. Manufacturing & Industrial Deal Activity

Manufacturing M&A activity accelerated through 2025 as inflation eased, financing conditions improved, and buyers moved from caution to action.

• • Global industrials and services M&A values rose 19% in 2025, while deal volumes increased by a more modest 3%. (PwC)
• • Manufacturing ranked third globally by megadeal count in 2025, with 11 megadeals announced. Technology led with 26, followed by banking with 13. (PwC Global M&A Trends)
• • The industrials sector recorded 442 deals in Q2 2025, up from 437 in Q1, a 1.1% quarter-on-quarter rise and 8.1% increase versus Q2 2024. (R.L. Hulett)
• • Capital invested in industrial deals reached $17.5 billion in Q2 2025, up 16.7% year-over-year. (R.L. Hulett)
• • Manufacturing deal activity grew 4% year-over-year in 2025. Aerospace and defense led subsectors with a 45% increase, followed by engineering and construction at 11%. (PwC)
• • Industrial manufacturing deal value rose approximately 32.8% year-over-year in Q2 2025 to about $78.1 billion, even as deal volume declined 11.4% quarter-over-quarter. The trend: fewer deals, but larger ones. (KPMG)
• • Strategic acquirers accounted for 69% of deal value in manufacturing M&A during Q2 2025. (KPMG)
• • In the Americas, industrials deal values surged 49% in 2025. Asia Pacific and EMEA both saw decreases of 2% and 6%, respectively. (PwC)
• • Europe was the most active region by deal count in industrials, recording 194 deals in Q2 2025. (R.L. Hulett)
• • Middle market M&A deal volume saw a 6.6% year-over-year increase starting in Q1 2025, marking the turn of the downcycle. (Capstone Partners)

3. Valuation Multiples by Subsector

What are manufacturing companies actually selling for? These EBITDA and revenue multiples show the range across subsectors and buyer types.

Strategic vs. Private Equity Multiples (1H 2025)

Private Sector Manufacturing EBITDA Multiples by Subsector

• • Private sector manufacturing EBITDA multiples climbed from 10.2x to 11.1x between H1 2024 and H1 2025, a roughly 9% increase. Average deal value within the sector more than doubled during the same period. (First Page Sage)
• • The median EBITDA multiple for private manufacturing companies ranged from 3.2x (25th percentile) to 10.4x (75th percentile), with a median of 5.4x across all deal sizes. (DHJJ)
• • Strategic buyers paid a massive premium over PE buyers in 1H 2025. The gap between strategic (14.7x) and PE (9.6x) EV/EBITDA multiples reflects strategic buyers paying synergy premiums while sponsors priced more tightly amid higher financing costs. (R.L. Hulett)
• • Industrial IoT and recycling/waste management companies commanded the highest multiples among manufacturing subsectors, reaching 11.0x and 11.1x respectively for firms with $5-10M EBITDA. (First Page Sage)

4. Private Equity in Manufacturing M&A

Private equity firms are sitting on record dry powder and aging portfolio companies. That's creating pressure to both buy and sell in the manufacturing sector.

• • Private equity dry powder stood at $557 billion in mid-2025, with buyout funds sitting on roughly $1.2 trillion, much of it aging beyond four years. (League Park Advisors)
• • PE's share of industrial deal count fell to 38.5% in 1H 2025, a five-year low. Yet PE's share of invested capital rose to 42.1%, a five-year high. Translation: PE firms are making fewer deals but writing much larger checks. (R.L. Hulett)
• • Strategic acquirers represented roughly 61-62% of global deal volume in manufacturing and industrials, but PE buyers contributed nearly 42% of invested capital. (M&A Insights)
• • In the Americas, private equity contributed $398 billion to M&A volume in 2024, representing 22% of total deal activity. That was down sharply from $865 billion (28%) in 2021. (McKinsey)
• • PE activity in EMEA saw a significant decline. PE accounted for $243 billion (29%) of M&A activity in 2024, a sharp drop from $483 billion (32%) in 2021. (McKinsey)
• • Unrealized value in PE portfolios is at record highs, creating pressure for exits. Many PE-held manufacturing companies have been in portfolios for 4+ years. (Bain & Company)
• • PE firms in the manufacturing space are favoring recurring-revenue models, fragmented markets, and buy-and-build strategies that enable rapid scaling and platform expansion. (PwC)
• • In the diversified industrials space, strategic buyers accounted for 85% of closed transactions (1,219 of 1,434) in the trailing twelve months. (PCE Companies)

5. Manufacturing Megadeals (2025)

Several landmark manufacturing deals reshaped the sector in 2025. Here are the biggest transactions and what they signal about industry direction.

• • Industrials megadeals (transactions over $5 billion) rose from 7 in 2024 to 13 in 2025, nearly doubling. (PwC)
• • 40% of megadeals valued at more than $5 billion in the first 10 months of 2025 were categorized as transformative, meaning they represented more than 50% of the acquirer's market cap. (Bain & Company)
• • Scope deals (acquisitions driven by revenue growth into new markets) accounted for 60% of big deals in 2025, making it the biggest year on record for growth-driven M&A. (Bain & Company)
• • The advanced manufacturing and services sector was a major contributor to strategic M&A growth in 2025, alongside technology. (Bain & Company)

6. AI and Technology-Driven Acquisitions

Artificial intelligence is reshaping manufacturing M&A strategy. Companies are acquiring AI, automation, and digital capabilities at an accelerating pace.

• • Approximately one-third of the 100 largest corporate M&A transactions in 2025 cited AI as part of the strategic rationale. Technology, manufacturing, and power/utilities were the sectors where AI was mentioned most frequently. (PwC Global M&A Trends)
• • AI adoption for M&A processes more than doubled in 2025, reaching 45% of practitioners. Usage expanded from sourcing and screening into integration planning and execution. (Bain & Company)
• • One in five strategic dealmakers walked away from a deal in 2025 because of the anticipated impact of AI on the target's business. (Bain & Company)
• • The median percentage of industrials leaders who plan to use advanced technologies across their value chain over the next five years jumped to 68%, up from 26% in 2025. (PwC Future of Industrials Survey)
• • Dealmakers are prioritizing technology-driven targets that improve data utilization, operational resilience, and customer responsiveness. Digital readiness, data quality, and cybersecurity risk are now standard due diligence items. (PwC US Deals Outlook)
• • Tech M&A was up 77% in 2025, propelled by AI-related assets. Almost half of strategic technology deal value for deals greater than $500 million came from AI-native companies or deals citing AI benefits. (Bain & Company)
• • Robotics transaction activity in 2025 reflected the technology's deepening role across industrial and critical infrastructure markets, with PE investments in automation engineering firms and strategic acquisitions of robotic production systems. (RoboticsTomorrow)

7. M&A Trends by Manufacturing Subsector

Aerospace & Defense

• • Aerospace and defense deal activity increased 45% in 2025, the largest subsector increase. Rising global defense spending and geopolitical tension drove activity across rearmament, components, unmanned systems, space, and aftermarket services. (PwC)
• • Aerospace manufacturing companies with $5-10M EBITDA commanded an average 10.9x EBITDA multiple in private M&A deals. (First Page Sage)

Automotive

• • Automotive deal activity decreased 1% year-over-year globally. In the Americas specifically, automotive M&A declined 20%, while Asia Pacific and EMEA saw modest increases of 13% and 3%. (PwC)
• • Dealmaking in automotive remains selective due to overcapacity and capital constraints. OEMs and suppliers are favoring strategic alliances, joint ventures, and targeted acquisitions for electrification, software, and autonomous driving. (PwC)

Engineering & Construction

• • Engineering and construction deal activity increased 11% in 2025. Infrastructure, clean energy, and data center investment supported M&A in specialty contractors and industrial services. (PwC)

Energy & Grid Infrastructure

• • AI-scale compute and the energy transition are reshaping industrial M&A. Hyperscale AI adoption is driving investment in data centers, grid interconnection, and reliability upgrades across Asia, Europe, and North America. (PwC)
• • M&A activity is increasingly drawn toward differentiated component platforms, field services networks, and software-enabled solutions focused on switchgear, transformers, backup power, advanced cooling, and digital energy management. (PwC)

Automation & Robotics

• • Megadeals in manufacturing are concentrated in automation, electrification, and energy infrastructure, taking a larger share of total deal value as corporates accelerate technology capabilities. (PwC US)
• • Portfolio reshaping, reshoring, and AI infrastructure demand are driving selective large-scale deals and bolt-ons in automation, energy storage, and life-sciences-adjacent niches. (PwC)

8. M&A Success and Failure Rates

Despite the volume of M&A activity, the track record for successful integrations remains sobering. These statistics apply across industries, including manufacturing.

• • Between 70% and 90% of acquisitions fail to deliver expected value, according to most studies. Integration problems are the most commonly cited reason. (Harvard Business Review)
• • McKinsey's research puts the failure rate at roughly 70%, a figure that has remained consistent across decades. (McKinsey)
• • KPMG research found that 83% of merger deals failed to boost shareholder returns. Six key factors were identified for success: synergy valuation, integration project planning, due diligence, management selection, communication, and cultural integration. (ResearchGate / KPMG)
• • More than 85% of M&A executives said they refreshed their M&A pipeline in 2025, pointing to shifts in technology and strategy as the primary catalyst. (Bain & Company)

9. Manufacturing M&A Outlook for 2026

What's ahead for manufacturing M&A in 2026? Multiple factors are converging to keep deal activity elevated. Both buyers and sellers are becoming more resilient in the face of disruption, and the desire to diversify through strategic deals is accelerating. Companies are looking to strengthen balance sheet positions, build scalable platforms, and gain supply chain control. Deal value growth in the first quarter of 2025 set the tone for what's coming.

• • PwC expects deal activity to increase in 2026 as labor shortages, geopolitical pressure, and supply chain risk push companies to acquire automation, digital, and productivity-enhancing capabilities. (PwC)
• • Corporates are divesting legacy or non-core operations and reallocating capital toward higher-growth, technology-enabled, and service-oriented businesses aligned with digitalization and the energy transition. (PwC)
• • Stabilization of policy, regulatory, and rate environments is resetting dealmaker confidence. Manufacturers that delayed transactions due to valuation uncertainty are preparing to reengage. (PwC US)
• • Policy incentives tied to clean energy, domestic capacity, and supply chain resilience are creating targeted M&A opportunities in components, automation, and critical infrastructure. (PwC US)
• • The mid-market is expected to see a meaningful pickup as financing becomes easier to secure and buyers look to capture value ahead of potential rate cuts. (PwC US)
• • Global M&A volumes in H1 2025 fell 9% compared to H1 2024, while deal values rose 15%. This "fewer but bigger" trend is expected to continue into 2026. (CJPI)
• • Trade and tariff uncertainty had limited impact on 2025 M&A plans. Less than half of executives said trade restrictions affected their overall M&A plans, and 70% said policies would not affect divestiture plans. (Bain & Company)

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Sources

1. Bain & Company, "Looking Back at M&A in 2025: Behind the Great Rebound," 2026 M&A Report
2. PwC, "Global M&A Trends in Industrials and Services: 2026 Outlook"
3. PwC, "Global M&A Industry Trends: 2026 Outlook"
4. PwC, "Industrial Manufacturing: US Deals 2026 Outlook"
5. McKinsey & Company, "Top M&A Trends"
6. KPMG, "M&A Trends in Industrial Manufacturing"
7. EY Parthenon, "M&A Outlook 2026"
8. Harvard Law School Forum on Corporate Governance, "Mergers and Acquisitions: Reviewing 2025"
9. R.L. Hulett, "Industrials M&A Update Q2 2025"
10. First Page Sage, "Manufacturing EBITDA & Valuation Multiples 2025 Report"
11. DHJJ, "Business Valuation Multiples by Industry"
12. League Park Advisors, "2025 Manufacturing M&A Trends"
13. M&A Insights, "Manufacturing & Industrials M&A Multiples, Trends & Statistics"
14. PCE Companies, "Diversified Industrials Q2 2025 Report"
15. Capstone Partners, "Merger and Acquisition Outlook 2026"
16. Harvard Business Review, "Don't Make This Common M&A Mistake"
17. McKinsey, "Merger Management Compendium"
18. ResearchGate, "Mergers and Acquisitions Failure Rates"
19. RoboticsTomorrow, "Automation Solutions M&A Update"
20. CJPI, "Mergers & Acquisitions Trends for 2026"
21. Manufacturing Dive, "Industrial M&A Ramps Up"