Market overview
In Q3 2025, the automotive industry continued to face uncertainty due to the tariffs imposed by the US government on cars, automotive parts, and other key imports such as steel and aluminium, alongside stagnating short-term production forecasts. At the same time, diverging regional preferences in powertrain technologies are prompting OEMs and suppliers to strengthen their global presence and deliver more tailored solutions.
The number of automotive M&A deals increased from 64 in Q2 2025 to 67 in Q3 2025. In Q3 2025, M&A activity was primarily driven by transactions in the automotive aftermarket, new vehicle solutions, and the commercial vehicle segment.
Across Europe, valuation multiples showed a positive performance in Q3 2025, compared to Q2 2025. EV/Sales, EV/EBITDA, and EV/EBIT increased by 1.1%, 5.1%, and 1.5%, respectively. In North America, all key multiples increased significantly, with EV/Sales up by 18.8%, EV/EBITDA up by 16.6%, and EV/EBIT up by 22.7%. In Asia, a significant growth was observed, with EV/Sales, EV/EBITDA, and EV/EBIT increased by 25.5%, 25.4%, and 23.3%, respectively.
Despite the ongoing challenges and uncertainties surrounding US tariffs, companies are preparing for long-term impacts. Strategic alliances and M&A activity may be leveraged, as companies aim to strengthen their global footprint to build resilient supply chains, diversify across end markets, and broaden product portfolios in response to geopolitical and industry-specific challenges.
The number of automotive M&A deals increased from 64 in Q2 2025 to 67 in Q3 2025.
Top M&A deals Q3 2025
- LKQ Corporation Inc. (LKQ), a leading US-based provider of recycled OEM automotive parts and aftermarket collision replacement products, sold its self-service segment to Pacific Avenue Capital Partners LLC (Pacific Avenue). Through this acquisition, Pacific Avenue expands its portfolio in the automotive industry. LKQ’s divestiture of its self-service segment enables the company to sharpen its strategic focus on core offerings, while providing Pacific Avenue a strong entry point to scale within the automotive space
- Fernride GmbH (Fernride), a German-based software company engaged with developing logistics and automation solutions for moving cargo in container terminals, manufacturing facilities, and distribution centres, including autonomous driving and driverless logistics, sold a stake to an investor group led by venture capital firm Helantic GmbH & Co. The acquisition is an extension of Fernride’s Series A financing round and will further strengthen the company by leveraging the strategic expertise and industry knowledge of its new investors. Fernride aims to accelerate innovation, expand its customer base, and reinforce its leadership in autonomous logistics solutions
- KSR International Co (KSR), a Canada-based manufacturer and developer of automotive interfaces that supplies driver control systems primarily for OEMs in the transportation sector, was acquired by Angstrom Automotive Group LLC (Angstrom), a US-based automotive parts manufacturer. Through this acquisition, Angstrom will leverage the capabilities of KSR and increase its product offerings, while strengthening its market-leading position as an automotive parts supplier
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Automotive Lead
Tobias Schätzmüller
Managing Partner
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Tobias Schätzmüller
Managing Partner +49 172 670 45 43 tobias.schaetzmueller@clearwatercf.com Connect