Manufacturing M&A Expected to Grow, Driven by Medical Device Makers & Others

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Dealmakers predict solid growth for M&A in the manufacturing sector over the next year, according to Mergers & Acquisitions’ Mid-Market Pulse (MMP). The MMP is a forward-looking sentiment indicator, published in partnership with CT, a provider of business compliance and deal support services. (Read the full report).

The MMP survey participants polled in September gave the manufacturing sector a score of 59.5 for the three-month outlook and 57.9 for the 12-month outlook, outpacing the scores for overall M&A in the same timeframes, which were 56.2 and 57.0 respectively.

September saw several deal announcements by medical device companies, including Boston Scientific (NYSE: BSX), which agreed to purchase EndoChoice Holdings Inc. (NYSE: GI); and Natus Medical Inc. (Nasdaq: BABY), which agreed to buy a division of GN Store Nord A/S.

“U.S. manufacturing should see some tailwinds once the election cycle concludes,” said one survey participant. 

“We’re expecting a more friendly (e.g., reasonable) regulatory environment with the next administration, regardless of the winner,” said another dealmaker who responded to our survey.

While the manufacturing scores were certainly respectable, they fell short of the ones generated by the tech, media and telecommunications (TMT) industry. With a 3-month score of 78.0 and a 12-month score of 72.6, the TMT sector came in first place among the six high-growth sectors measured each month by the MMP.

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