Engineering & construction services sector landscape
M&A Activity & Aggregate Deal Value: Q3-19 – Q3-21
- Global aggregate M&A deal value for the Engineering & Construction sector decreased to $8.3bn in Q3-21, down from $14.9bn1 in Q2-21.
- Relative to Q2-21, Q3-21 global M&A deal volume witnessed a decline of 5.0%
- In Q3-21, reported U.S. Engineering & Construction aggregate M&A deal value totaled $3.2bn, up from $1.3bn in Q2-21. U.S. M&A deal volume increased 9.6% on a quarter-over-quarter basis
- The U.S. accounted for 39.3% of global Engineering & Construction M&A activity in Q3-21, up from 34.1% in Q2-21
In Q4-20, 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
Sector | LTM Trading Multiples | Description | |
---|---|---|---|
TEV / Revenue | TEV / EBITDA | ||
Construction Contractors | 0.37x | 10.8x | Providers of construction and general contracting services |
Diversified Engineering & Construction | 1.16x | 13.6x | Professional services firms offering a range of engineering, construction, and construction management services |
Infrastructure Services | 0.85x | 12.3x | Civil and infrastructure construction and engineering services |
Specialty Engineering and Construction | 1.30x | 11.4x | Electrical, mechanical, industrial, and environment engineering and construction services |
Utility Services | 0.95x | 11.0x | Electric power, energy, and utility engineering and construction services |
Transportation & logistics services sector landscape
M&A Activity & Aggregate Deal Value: Q3-19 – Q3-21
- Aggregate global Transportation & Logistics sector M&A deal value totaled $84.5bn2 in Q3-21, up from $34.7bn in Q2-21
- Over the same period, global M&A deal volume for the sector declined 7.5%
- U.S. aggregate M&A deal value increased from $10.5bn in Q2-21 to $39.5bn2 in Q3-21, while U.S. M&A deal volume witnessed a decline of 8.3% during the quarter
- In Q3-21, the U.S. accounted for 26.6% of global Transportation & Logistics M&A activity, which was down slightly from 26.9% in Q2-21
In Q3-21, Canadian Pacific Railway Limited (TSX:CP) submitted a proposal to acquire Kansas City Southern (NYSE:KSU) for $31.7bn, which comprised 80.3% of the U.S. aggregate deal value and 37.5% of global aggregate deal value for the Transportation & Logistics sector.
Transportation & Logistics Services Public Company Sector Overview
Sector | LTM Trading Multiples | Description | |
---|---|---|---|
TEV / Revenue | TEV / EBITDA | ||
Logistics Providers | 1.44x | 12.9x | Third-party logistics providers offering warehouse management, order fulfillment, and shipment services |
Marine | 3.09x | 11.7x | Ocean and marine freight transportation and logistics services |
Rail and Rail Services | 5.81x | 15.0x | Rail-based freight transportation services |
Trucking | 2.11x | 9.5x | Companies offering truckload transportation services |
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Footnotes
- 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.
- In Q3-21, Canadian Pacific Railway Limited (TSX:CP) submitted a proposal to acquire Kansas City Southern (NYSE:KSU) for $31.7bn, which comprised 80.3% of the U.S. aggregate deal value and 37.5% of global aggregate deal value for the Transportation & Logistics sector.