UK Manufacturing M&A Activity Remains Resilient, with Deals on the Rise

The UK manufacturing industry remained resilient in 2022, with 2023 also off to a promising start.

A challenging economic environment has cast uncertainty on the sector, but in a report by Irwin Mitchell that examined deal information from Experian’s Market IQ database, it revealed that 1,344 UK manufacturing businesses were the target of M&A activity in 2022, in comparison to 1,285 in 2021 and 1,231 in 2020, its highest level since 2016.

The UK manufacturing sector has also seen a continued interest from overseas investors, with 30% of deals coming from abroad. The US was the largest investor, accounting for 8% of deals, followed by Sweden, Germany and France.Factors that have contributed to this uptick in deals include investors looking at strategic opportunities as a means of securing supply chains; expanding product offerings; gaining access to new technology and service capabilities; recruiting new talent; and strengthening competitive positions, safeguarding their future and position for growth.

Q1 2023 has also had a positive start, with many manufacturers reporting that output volumes have increased.

This growth has been prevalent in the electronics, mechanical equipment and metal products subsectors.

Commenting on these trends, Emma Callow, corporate partner at Irwin Mitchell, said: “This latest analysis may look surprising, bearing in mind the challenges faced by the economy last year. Although activity dipped in the last quarter of 2022, these figures certainly reflect how resilient the manufacturing sector is.

“We have seen deal flow in the sector continue to be strong and early signs show that activity in 2023 may be even stronger than 2022.”

Europe: Michael Lawrie at +44 (0) 161 359 4400 / Lawrie@BenchmarkIntl.com

Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com

Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com

ABOUT BENCHMARK INTERNATIONAL

Benchmark International is a global M&A firm that provides business owners with creative, value-maximizing solutions for growing and exiting their businesses. Benchmark International has handled over $9.4 billion in transaction value across various industries from offices across the world. With decades of M&A experience, Benchmark International’s transaction teams have assisted business owners with achieving their objectives and ensuring the continued growth of their businesses. The firm has also been named the Investment Banking Firm of the Year by The M&A Advisor and the Global M&A Network as well as the #1 Sell-side Exclusive M&A Advisor in the World by Pitchbook’s Global League Tables.

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