Overview of M&A activity
In Q2 2024, small and medium-sized automotive suppliers continued to face many challenges with a shortage of skilled labour, refinancing costs, and price increases. Together with savings in research and development as well as shortened development times, this poses a major challenge for the entire ecosystem. Additionally, margin pressure on OEMs drives cost-cutting in procurement, affecting suppliers across the supply chain, while the automotive industry continues to focus on the shift towards electromobility.
The automotive M&A deal count decreased slightly from Q1 2024 to Q2 2024 with 86 and 76 transactions, respectively. M&A activity in Q2 2024 was mainly driven by transactions in the areas of EV, automation, and the commercial vehicle segment as well as non-core divestments of Tier- 1s and financial sponsor-backed transactions such as the Dayco Propulsion Solution acquisition by Aurelius Private Equity.
The automotive industry continues to focus on the shift towards electromobility.
Top M&A deals Q2 2024
- Dayco Propulsion Solution, a subsidiary of Dayco Group, acquired by Aurelius Private Equity through its mid-market buyout fund. Dayco Propulsion Solution is a leading supplier of power transmission systems for commercial, off-highway, and lightweight vehicle OEMs. This acquisition underscores Aurelius' commitment to increasing investment activities in North America and positions the company to unlock new growth opportunities as a leader in hybrid systems
- Wilhelm Schwarzmüller GmbH, a manufacturer of utility vehicles, enters into a strategic partnership through the investment of Fahrzeugwerk Bernard KRONE GmbH & Co KG, a German-based manufacturer of commercial trailers and agricultural machinery. With this cooperation, the two family-owned companies are strengthening the joint expansion of production networks and the establishment of comprehensive service offerings through a complementary product range
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SWTCH Energy Inc., a leading provider of electric vehicle charging solutions, secured €26.5m in a Series B funding round. The funding led by Blue Earth Capital with contributions from Alantra's Energy Transition Fund and GIGA Investments Corp, among others. SWTCH's proprietary technology, SWTCH Control, enhances the electrical efficiency and reliability of chargers. Through the new funding, SWTCH intends to further refine its cutting-edge SWTCH Control technology, expand its service offering and incorporate more advanced machine learning and artificial intelligence capabilities
Across Europe, a decrease in valuation multiples was observed from Q2 2024 compared to Q1 2024, with EV/Sales, EV/EBITDA, and EV/EBIT multiples decreasing by 4.8%, 5.9%, and 6.0%, respectively. The North American market demonstrated a more resilient performance compared to Europe, with EV/Sales increasing by 1.2%, while EV/EBITDA and EV/EBIT multiples decreased by 1.4% and 3.5%, respectively, in Q2 2024. In Asia, a similar trend was observed as in Europe, with EV/Sales, EV/EBITDA, and EV/EBIT multiples decreasing by 5.6%, 3.9%, and 2.6%, respectively, compared to Q1 2024.
Despite the current negative press and lower-than-expected sales figures in the EV sector, many suppliers continue to face significant demands in transformation. The current interest rate level, coupled with ongoing uncertainties in the field of electromobility, looks to result in a delay or cancellation of necessary investments.
Top M&A deals Q2 2024
- Dayco Propulsion Solution, a subsidiary of Dayco Group, acquired by Aurelius Private Equity through its mid-market buyout fund. Dayco Propulsion Solution is a leading supplier of power transmission systems for commercial, off-highway, and lightweight vehicle OEMs. This acquisition underscores Aurelius' commitment to increasing investment activities in North America and positions the company to unlock new growth opportunities as a leader in hybrid systems
- Wilhelm Schwarzmüller GmbH, a manufacturer of utility vehicles, enters into a strategic partnership through the investment of Fahrzeugwerk Bernard KRONE GmbH & Co KG, a German-based manufacturer of commercial trailers and agricultural machinery. With this cooperation, the two family-owned companies are strengthening the joint expansion of production networks and the establishment of comprehensive service offerings through a complementary product range
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SWTCH Energy Inc., a leading provider of electric vehicle charging solutions, secured €26.5m in a Series B funding round. The funding led by Blue Earth Capital with contributions from Alantra's Energy Transition Fund and GIGA Investments Corp, among others. SWTCH's proprietary technology, SWTCH Control, enhances the electrical efficiency and reliability of chargers. Through the new funding, SWTCH intends to further refine its cutting-edge SWTCH Control technology, expand its service offering and incorporate more advanced machine learning and artificial intelligence capabilities
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Tobias Schätzmüller
Managing Partner
As one of the co-founders of the German Clearwater office, I lead our international Automotive & Mobility sector team as a Partner. I have always been fascinated by the mobility sector due to its innovative capacity and constant technological change. We realise significant, usually cross-border M&A transactions in all (automotive) mobility sub-segments for family businesses, corporations and private equity investors. I am also responsible for the Financial Services division in the DACH region. I started my corporate finance career in 2000 at Dresdner Kleinwort Benson, before co-founding Clearwater. Besides the mobility industry, I am passionate about progressive rock, and Bayern Munich and I love spending time with my wife and our three children.
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