1st Half 2021 Industrial Services M&A update

Read more about the M&A activity in the industrial services sector.

Stephen Guy

Stephen Guy

Managing Director, KPMG Corporate Finance LLC

+1 443-946-9789

Engineering and Construction services sector landscape

M&A activity & aggregate deal value: Q2-19 – Q2-21

  • Global aggregate M&A deal value for the Engineering & Construction sector increased  to $14.9bn in Q2-21, up from $6.2bn in Q1-21, however, over the same period, M&A  deal volume for the sector witnessed a slight decline of 2.9%
  • In Q2-21, reported U.S. Engineering & Construction aggregate M&A deal value totaled $1.3bn, down from $2.0bn in Q1-21. Over the same period, Aggregate U.S. M&A deal  volume decreased 2.2%
  • The U.S. accounted for 34.1% of global Engineering & Construction M&A activity  during Q2-21, slightly up from 33.8% in Q1-21
*In Q4-21, China Energy Engineering Corporation Limited (SEHK:3996) acquired a 57.16% stake of China Gezhouba Group Company Limited (SHSE:600068) for $18.6bn, which comprised 59.6% of global aggregate deal value for the Engineering & Construction  sector during the quarter.
** In Q2-21, Brookfield Business Partners L.P. (NYSE:BBU) agreed to acquire Modulaire Group, for $5bn, representing 33.6% of global aggregate deal value for the Engineering & Construction sector during the quarter.

Engineering & Construction services public company sector overview 

LTM Trading Multiples Description
EV /
EV /
Construction Contractors 0.38x 9.9x Providers of construction and general contracting services
Diversified Engineering & Construction 1.16x 14.2x Professional services firms offering a  range of engineering, construction, and  construction management services
Infrastructure Services 0.88x 11.4x Civil and infrastructure construction and engineering services
Specialty Engineering and Construction 1.38x 12.7x Electrical, mechanical, industrial, and environment engineering and construction services
Utility Services 0.96x 11.1x Electric power, energy, and utility engineering and construction services

Transportation & logistics services sector landscape

M&A activity & aggerate deal value: Q2-19 – Q2-21

  • Aggregate global Transportation & Logistics sector M&A deal value totaled $68.6bn in Q2-21, up from $27.5bn in Q1-21
  • Relative to the first quarter of 2021, global M&A deal volume increased 2.7% in the  second quarter of 2021
  • U.S. aggregate M&A deal value increased from $2.6bn in Q1-21 to $44.4bn in Q2-21,  while U.S. M&A deal activity increased 2.8% over the same period
  • In Q2-21, the U.S. accounted for 27.1% of global Transportation & Logistics M&A activity during Q2-21, which remained flat compared to Q1-21
*In Q2-21, Canadian National Railway Company acquired Kansas City Southern for $33.8bn, which comprised 76.1% of the U.S. aggregate deal value and 49.3% of global aggregate deal value for the Transportation & Logistics sector.

Transportation & Logistics Services public company sector overview 

LTM Trading Multiples Description
EV /
EV /
Logistics providers 1.55x 13.8x Third-party logistics providers offering  warehouse management, order  fulfillment, and shipment services
Marine 3.16x 14.4x Ocean and marine freight  transportation and logistics services
Rail and Rail Services 6.38x 16.0x Rail-based freight transportation  services
Trucking 2.06x 9.4x Companies offering truckload  transportation services


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