The pace of deals in the global industrial manufacturing industry has slowed significantly during the first three quarters of 2008, according to a report released by PricewaterhouseCoopers LLP.
The report found that the number of deals with a disclosed value of at least $50 million announced during the first three quarters of 2008 (126 deals), is not likely to match last year’s level (207 deals) but is on pace to approach the number of deals announced during 2006 (169 deals).
The majority of deals that took place so far this year in the industrial manufacturing sector involved industrial machinery targets (42%), which is consistent with previous years. Interest in electronic and electrical equipment targets accounted for 20% of deals while rubber and plastic products categories accounted for 15% through the third quarter of 2008. In addition, acquisitions of public and subsidiary entities led all deal targets over $50 million (68%) during the first three quarters of 2008 while deals for privately-owned targets continue to increase steadily over time, accounting for 30% of all targets in the first three quarters of the year, rising from 27% in 2007 and 23% in all of 2006.