Market overview
In Q4 2025, the automotive industry continued to face uncertainty driven by geopolitical and sector-specific challenges. Moderate production volume forecasts, coupled with marginal regional shifts and the growing impact of geopolitical factors, are shaping the industry landscape. The continued regionalisation of global manufacturing networks remains a key consideration for both suppliers and OEMs.
The number of automotive M&A deals increased from 67 in Q3 2025 to 95 in Q4 2025. The cumulative deal value increased in Q4 2025 (€15.1bn) compared to Q3 2025 (€6.2bn). In Q4 2025, M&A activity was primarily driven by transactions in the automotive aftermarket, distressed automotive suppliers, and commercial vehicle component suppliers, as well as financial sponsor-backed transactions such as the sale of Frauenthal Automotive to SteelCo.Tech, a portfolio company of RCP.
Across Europe, EV/Sales and EV/EBITDA valuation multiples increased by 6.4% and 7.8%, respectively, from Q3 2025 to Q4 2025, while EV/EBIT multiples decreased by 16.6%. In North America, all key multiples decreased, with EV/Sales down by 2.5%, EV/EBITDA down by 3.3%, and EV/EBIT down by 14.0%. In Asia, significant growth was observed, with EV/Sales, EV/EBITDA, and EV/EBIT increased by 16.1%, 16.9%, and 8.6%, respectively.
Ongoing geopolitical uncertainties and industry-specific challenges and trends are forcing companies to build more resilient supply chains, diversify across end markets, and broaden product portfolios. At the same time, market consolidation and the drive to strengthen global footprints remain key catalysts for strategic alliances and M&A activity.
The number of automotive M&A deals increased from 67 in Q3 2025 to 95 in Q4 2025.
Top M&A deals Q4 2025
- Frauenthal Holding AG (Frauenthal), an Austria-based diversified industrial group with operations across Europe, sold its automotive division to SteelCo.Tech Germany GmbH (SteelCo.Tech), a portfolio company of RCP. The automotive division comprises the Frauenthal Gnotec and Frauenthal Airtank businesses, specialising in the manufacture of metal-pressed and welded components as well as compressed air tanks for the automotive industry. For SteelCo.Tech, the acquisition represents a further step in expanding and diversifying its industrial platform in metal processing, creating opportunities for operational synergies, efficiency improvements, and sustainable growth. For Frauenthal, the transaction enables it to focus on its remaining business activities
- IFA Holding GmbH (IFA Group), a Germany-based developer and manufacturer of drive shafts and joints, acquired by Neapco LLC (Neapco), a US-based provider of innovative driveline solutions. AEQUITA acquired IFA Group in 2022. Since then, the company has undergone a comprehensive realignment, including the introduction of innovative manufacturing technologies and the modernisation and restructuring of all production sites. With this acquisition, Neapco aims to leverage its expertise, innovative strength, and global presence to further expand its market position
- Georg Fischer AG (GF), a Switzerland-based industrial group, sold its Leipzig iron casting facility to Linamar Corporation (Linamar), a Canada-based global manufacturer of mobility and industrial solutions. Through this acquisition, Linamar expands its European manufacturing footprint and has access to solid growth opportunities in highly complex cast components for a broad range of end markets. With this divestment, GF continues its strategic transformation into a pure-play flow solutions company
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Tobias Schätzmüller
Managing Partner +49 172 670 45 43 tobias.schaetzmueller@clearwatercf.com Connect