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Worldwide Cross-Border Transactions Play Major Role in Industrial Manufacturing Industry, Says New PwC Report

A new PricewaterhouseCoopers (PwC) quarterly report reveals global cross-border transactions comprised a majority of global industrial manufacturing merger and acquisition activity in Q3 2011. During that period 16 cross-border deals were made worth more than $50 million, and representing 55 percent of total deal volume. According to Assembling Value, companies are looking to new, more stable markets to grow their businesses and offset concerns of an uncertain global economic environment. Some of the key findings about third-quarter activity include:

  • U.S.-affiliated deals also led M&A activity with 17 deals worth more than $50 million, totaling $5.9 billion, and comprising over half of total deal volume and value.

  • Strategic investors continued to dominate deal activity, contributing 72 percent of deals worth more than $50 million.

  • The industrial machinery sector led activity by contributing 52 percent of deals, followed by fabricated metal products, and electronic and electrical equipment.

"Optimism around a manufacturing renaissance in the U.S. and the continuing trend of consolidation in mature markets are among the factors driving the robust activity in the U.S.," said Barry Misthal, PwC's global industrial manufacturing leader.

In a recent survey of executives at large, multinational U.S. industrial manufacturing companies, PwC found that 62 percent of respondents expect to participate in new business initiatives, he added, with 35 percent planning merger and acquisition activity over the next 12 months. "Of that number, all are looking at purchasing another business, demonstrating that U.S. industrial manufacturers are looking to M&A to drive revenues and offset any weaknesses in organic growth."

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