Overview of M&A activity
In Q1 2025, the automotive industry continued to face major challenges, and this is expected to intensify due to the recent tariffs imposed by the US government on cars, automotive parts, and other imports such as steel and aluminium. In addition to higher uncertainty, stagnating short-term production forecasts and a slower-than-expected transition to EVs are forcing companies to be more cautious with investments.
The automotive M&A deal count decreased from Q4 2024 to Q1 2025, with 74 and 57 transactions, respectively. The cumulative deal value decreased in Q1 2025 (€1.6bn) compared to Q1 2024 (€6.7bn). In Q1 2025, M&A activity was driven by transactions in the areas of the automotive aftermarket, interior components suppliers, and distressed automotive suppliers.
Capacity adjustments, supply chain security and risk diversification are driving market consolidation and thus M&A activity and strategic alliances.
Top M&A deals Q1 2025
- Megatech Industries AG, a manufacturer of interior parts such as door panels, pillars, headliners, trunk components, and other plastic parts, acquired by SAPA S.p.A. (SAPA), an Italian-based automotive supplier and specialist in thermoplastic components in a variety of high value-added processes. With this acquisition, SAPA will further consolidate its long-standing relationships with major OEMs and continue a diversification across customers, products, and geographies. With this takeover, SAPA will approach €700m in revenue
- Schumag AG, a specialist in the production of highly complex precision components for combustion engines and various other industrial applications, acquired by Active Capital Company (ACC) as well as Nomainvest, TPPI, and CoDa. After financial difficulties due to a challenging market environment, reduced revenues, and a cyberattack, the company initiated a reorganisation in October 2024. ACC formed a strategic partnership with the existing shareholders to support the company’s objective of strengthening its business prospects and expanding its strong client relationships
- Experica S.p.A., an Italian-based distributor of spare parts for industrial and commercial vehicles, trailers, and buses, acquired by Europart Group GmbH, a leading European partner for commercial vehicle workshops and operators of truck, trailer, transport, and bus fleets in the European aftermarket. The acquisition is expected to create significant operational and commercial synergies, strengthening the company's presence in the Italian market and leading to further consolidation in a fragmented sector
Across Europe, a negative performance in valuation multiples was observed from Q4 2024 compared to Q1 2025, with EV/Sales, EV/EBITDA, and EV/EBIT multiples decreasing by 5.2%, 0.3%, and 1.0%, respectively. The North American market demonstrated a strong negative performance, with EV/Sales, EV/EBITDA, and EV/EBIT multiples decreasing by 16.2%, 11.1%, and 20.1% in Q1 2025, respectively. Also, in Asia, an overall decrease was observed, with EV/Sales, EV/EBITDA and EV/EBIT multiples decreasing by 5.0%, 6.2%, and 5.5%, respectively, compared to Q4 2024.
Although the magnitude and impact of the US tariffs are not yet foreseeable, companies will be forced to respond in the long term. Secured supply chains, diversified end-markets, and product portfolios will be essential when responding to geopolitical and industry-specific challenges. A favourable financing environment remains a catalyst for investments as well as a key driver for strategic alliances and M&A activity.
Top M&A deals Q1 2025
- Megatech Industries AG, a manufacturer of interior parts such as door panels, pillars, headliners, trunk components, and other plastic parts, acquired by SAPA S.p.A. (SAPA), an Italian-based automotive supplier and specialist in thermoplastic components in a variety of high value-added processes. With this acquisition, SAPA will further consolidate its long-standing relationships with major OEMs and continue a diversification across customers, products, and geographies. With this takeover, SAPA will approach €700m in revenue
- Schumag AG, a specialist in the production of highly complex precision components for combustion engines and various other industrial applications, acquired by Active Capital Company (ACC) as well as Nomainvest, TPPI, and CoDa. After financial difficulties due to a challenging market environment, reduced revenues, and a cyberattack, the company initiated a reorganisation in October 2024. ACC formed a strategic partnership with the existing shareholders to support the company’s objective of strengthening its business prospects and expanding its strong client relationships
- Experica S.p.A., an Italian-based distributor of spare parts for industrial and commercial vehicles, trailers, and buses, acquired by Europart Group GmbH, a leading European partner for commercial vehicle workshops and operators of truck, trailer, transport, and bus fleets in the European aftermarket. The acquisition is expected to create significant operational and commercial synergies, strengthening the company's presence in the Italian market and leading to further consolidation in a fragmented sector
Transactions
Not just numbers on a balance sheet, our transactions represent over 20 years’ commitment to our clients’ future. Helping them change the game. Even before it was ready to be changed.
Forming a true European leader in plastic injection moulding for the mobility industry
Adviser to the shareholders of Megatech on its sale to SAPA
A decisive step towards European leadership in vehicle spare parts, creating a €650m industry leader
Adviser to the shareholders of Experica on its sale to Europart Group
Innovator in autonomous driving solutions secures funding to support the growth of logistics automation solutions
Adviser to Embotech on its new funding
Leading machinery specialist strengthens position with strategic sale
Adviser to DVS TECHNOLOGY GROUP on the sale of DVS Production and DVS Production South to Accursia Capital
Our international automotive team
Tobias Schätzmüller
Managing Partner +49 172 670 45 43 tobias.schaetzmueller@clearwatercf.com Connect