Insight

Test & Measurement Newsletter – Q3 2019

KPMG Corporate Finance LLC’s Q3 Test & Measurement M&A update

Chrisanne Corbett

Chrisanne Corbett

Managing Director, KPMG Corporate Finance LLC

+1 312-665-2779


Test & Measurement Market Commentary

Trading multiples for Test & Measurement (T&M)(1) as of Q3 2019 recorded an overall mean EV/LTM EBITDA of 17.3x; with the mean EV/LTM EBITDA for Life Science Instrument companies at 19.3x, Testing, Inspection, and Certification (TIC) at 13.7x, and Instrumentation at 17.9x

Announced transaction volume increased by 4.0% in Q3 2019 over Q3 2018, while announced transaction value increased 127.3% to $2.5B in Q3 2019, primarily driven by two large transactions:

  • Agilent Technologies $1.2B acquisition of BioTek Instruments
  • AMETEK’s $925M acquisition of Gatan from Roper Technologies

Strategic buyers continued to be highly active in Q3 2019, participating in approximately 90% of announced deals, led by SGS SA and Eurofins Scientific with three and two transactions, respectively.

(1) T&M includes: Testing, Inspection & Certification (TIC); Instrumentation; and Life Sciences Instruments
 
 

Valuation Trends (EV / LTM EBITDA) for Public T&M Companies


Global T&M Industry Announced Deal Volume and Value


Source: Capital IQ, Mergermarket, press releases
Notes: M&A analysis based on deals announced and/or closed during the respective periods. Deal value represents aggregate deal value for disclosed transactions for the time periods noted on the above graph



 

Subscribe

Get the latest updates to KPMG Corporate Finance LLC industry insights

 

Related content

Industrial markets group

Learn more about our transaction and advisory services.