Private equity deal activity in the machinery industry has effectively leveled off since 2011, according to the PitchBook Platform. 2013 recorded the same amount of deals in machinery-focused companies based in the U.S. or Canada as 2012 did (43), which was only one off what PitchBook recorded for 2011 (44). Compared to the 66 deals completed in 2008, the last three years have maintained about two-thirds the deal activity.
One standout reversal from 2012 to 2013 regards add-ons, of which there were three times as many last year (18) versus the year prior (6). That came close to the timeframe's high-water mark of 22 recorded in 2008. There's also been an increasing number of minority investments in the industry since 2011, rising from only three deals that year to eight deals in 2013. Combined, add-ons and minority investments made up 45% of all deal activity last year, compared to the 25% they combined to represent in both 2011 and 2012.