Livingstone Industrial Q2 Review & Outlook

The UK Industrial sector has had a roaring second quarter of 2018, with 127 deals completed, in line with the equally strong second quarter last year (126) and materially ahead of every quarter since.

In terms of average pricing, the greater sample size saw the average EBITDA multiple move back in line with the longer-term average of 8x-9x. Still very strong pricing by historical standards.

With UK economic growth picking up in the second quarter (0.4%), and the Q1 result upgraded from 0.1% to 0.2%, the wider economy continues to shrug off both the continuing political uncertainty and the ongoing bloodbath in certain areas of retail.

Reduced volatility in the £ in recent weeks and the PMI remaining strong at over 54% indicate the climate remains broadly benign, reflected in a mild improvement in new orders and solid employment growth across manufacturing.

That said, a rising oil price, shortages in certain raw materials and the now very real prospect of tariff growth is impacting on input costs. Where possible this is being passed on to customers but we can see margins in certain areas being impacted over the next six months.

Within M&A, despite the high number of completions to date we continue to have a strong pipeline and there is little sign of a slowdown in the next quarter.

Latest Industrial Transactions

Industrial Insights

Nice guys do finish first: Why the companies which protect our networks and data are valued so highly

The cyber security market is a “hot” sector and variably forecast to grow to over the next five years. Livingstone's Joe Austin discusses why the companies which protect our networks and data are valued so highly.

Growing pains: International expansion in Test, Measurement & Control

Livingstone has always has a strong affinity to the Test, Measurement & Control (TMC) sector and every year we complete multiple transactions for clients across a range of applications and technologies for use in the field and in the laboratory.

Test, Measurement & Control Newsletter

Positive momentum in the test, measurement & control sector shows no sign of abating. Strong underlying market growth continues to be a driver of M&A volumes and valuations. Tom Smith reviews recent M&A activity and the latest trends affecting the sector.

In the Press

Circular economy trends are boosting M&A in the waste management sector

In an article published this month in Recycling & Waste World, Ian Guilfoyle, Associate Director at Livingstone, explains how businesses, the wider industry, and the environment are all set to benefit from these developments.

Letter to the Editor: Gender diversity in manufacturing is improving, but leadership roles remain elusive

Graham Carberry, Partner at Livingstone, recently wrote to the editor of Manufacturing Management on this issue. Graham had examined the stats for female representation on boards across all FTSE100 manufacturing firms, with mixed results.

International Paper rules out fresh bid for Smurfit Kappa

"Smurfit Kappa is the logical European target for International Paper and we expect the open dialogue to continue. To the extent International Paper don’t succeed in their bid, we believe alternate European targets such as DS Smith or Europac, could also offer strong synergy potential.”

Contact Us

Graham Carberry

D: +44 (0)20 7484 4728

Patrick Groarke

D: +44 (0)20 7484 4707