Overview of M&A activity
In Q3 2024, the automotive industry continued to face major challenges amplified by a global decline in consumer demand for light, medium, and heavy-duty vehicles. Despite lower interest rates and a decrease in inflation, there has been no increase in new car registrations during 2024, with July and August showing a significant decline compared to the previous year. Additionally, the EU’s provisional tariff hike on Chinese automotive imports is impacting both Chinese car manufacturers and European OEMs.
The automotive M&A deal count increased from Q2 2024 to Q3 2024 with 76 and 88 transactions, respectively. The cumulative deal value decreased in Q3 2024 (€4.0bn) compared to Q1 2024 (€6.7bn). In Q3 2024, M&A activity was driven by autonomous driving, distressed automotive suppliers, as well as financial sponsor-backed deals, such as the acquisition of Josef Lentner and freeglass by HANNOVER Finanz GmbH, and Marval SpA acquired by Azzurra Capital Management.
The automotive M&A deal count increased from Q2 2024 to Q3 2024 with 76 and 88 transactions, respectively.
Top M&A deals Q3 2024
- freeglass GmbH & Co KG, a leading developer and manufacturer of three-dimensional plastic components for the automotive industry, acquired by HANNOVER Finanz GmbH through its special situations division, HF Opportunities (HFO). The acquisition is part of HFO's strategy to invest in promising companies that are facing significant challenges, with the potential to restore their long-term profitability. HFO plans to support freeglass’s growth plans, particularly in sensor technology, and looking for strong prospects despite challenges in the automotive sector
- Polymerica Ltd Co LLC, a manufacturer of interior automotive components with product facilities in Mexico and the US, acquired by OKE Group GmbH through its US subsidiary, OKE USA Holding, Inc. This deal should secure OKE’s presence in North America and Eastern Europe, increase its overall production capacity, and represent an important step in OKE's global expansion efforts, enabling the company to further expand its market reach and enhance its international competitiveness
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Auto-Kabel Management GmbH, a producer and supplier of energy distribution systems for vehicles, which filed for insolvency at the end of 2023, acquired by FIT Voltaira Group GmbH, a subsidiary of the global operating contract manufacturer Hon Hai Precision Industry Co. Ltd., which manufactures electronic products including connectors and connection solutions for vehicles. This transaction marks a key milestone in FIT Voltaira Group GmbH’s journey to become a leading provider of intelligent energy distribution systems, electrification, sensor, and connectivity solutions
Across Europe, there was a decrease of 2.5% in EV/Sales valuation multiples observed from Q2 2024 to Q3 2024, while EV/EBITDA and EV/EBIT multiples increased by 1.2%, and 10.8%, respectively. The North American market demonstrated a moderate performance compared to Europe, with EV/Sales, EV/EBITDA, and EV/EBIT multiples increasing by 5.2%, 2.2%, and 4.1%, respectively, in Q3 2024. In Asia, a decrease was observed, with EV/Sales, EV/EBITDA, and EV/EBIT multiples decreasing by 8.0%, 6.8%, and 4.7%, respectively, compared to Q2 2024.
Despite negative press and lower-than-expected sales figures, a potential long-term improvement to the conditions across the automotive market remains possible. The industry continues to mitigate rising costs across the entire value chain while adapting to ongoing powertrain transitions. However, lower interest rates could potentially be a catalyst for investments, helping to adapt product portfolios to industry trends, as well as fostering strategic alliances and M&A opportunities.
Top M&A deals Q3 2024
- freeglass GmbH & Co KG, a leading developer and manufacturer of three-dimensional plastic components for the automotive industry, acquired by HANNOVER Finanz GmbH through its special situations division, HF Opportunities (HFO). The acquisition is part of HFO's strategy to invest in promising companies that are facing significant challenges, with the potential to restore their long-term profitability. HFO plans to support freeglass’s growth plans, particularly in sensor technology, and looking for strong prospects despite challenges in the automotive sector
- Polymerica Ltd Co LLC, a manufacturer of interior automotive components with product facilities in Mexico and the US, acquired by OKE Group GmbH through its US subsidiary, OKE USA Holding, Inc. This deal should secure OKE’s presence in North America and Eastern Europe, increase its overall production capacity, and represent an important step in OKE's global expansion efforts, enabling the company to further expand its market reach and enhance its international competitiveness
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Auto-Kabel Management GmbH, a producer and supplier of energy distribution systems for vehicles, which filed for insolvency at the end of 2023, acquired by FIT Voltaira Group GmbH, a subsidiary of the global operating contract manufacturer Hon Hai Precision Industry Co. Ltd., which manufactures electronic products including connectors and connection solutions for vehicles. This transaction marks a key milestone in FIT Voltaira Group GmbH’s journey to become a leading provider of intelligent energy distribution systems, electrification, sensor, and connectivity solutions
Our international automotive team
Tobias Schätzmüller
Managing Partner +49 172 670 45 43 tobias.schaetzmueller@clearwatercf.com ConnectInsights
