Capital Equipment News December 2022

MARKET REVIEW

One of the biggest deals of 2021 was Hyundai Heavy Industries Holdings’ acquisition of Doosan Infracore. Doosan will be working diligently to commercialise Concept-X and develop innovative products such as electric excavators, battery packs, hybrid fuel cells and other next-generation products.

Filling the gaps As digital transformation continues apace, leading global original equipment manufacturers (OEMs) are hunting for deals at their fastest pace in years, racking up acquisitions and strategic investments in smaller technology firms to fill gaps and expand their offering. The acquisition trend, which has taken centre stage in the past two years, enables large OEMs to position themselves as equipment and technology leaders and one-stop shops for all their customers’ needs. By Munesu Shoko. T o fortify their stables and grow their offerings, large OEMs across the capital equipment sector are seizing opportunities to buy smaller technology companies. According to Bain & Company’s Machinery as several companies reshaped their portfolios in the face of evolving industry dynamics. The average deal size shot up to US$179-million on average in 2020 and US$161-million in 2021. Last year’s US$63 billion global deal value was the sector’s second highest annual total of the past decade, behind only 2020’s US$72-billion, according to Bain & Company. Market fundamentals such as digitalisation and

M&A: Reshaping Portfolios and Hunting Growth report, mergers and acquisitions (M&A) in the indus trial machinery and equipment manufacturing sector continue to rise as companies pursue transformative scale, scope and capability deals in a low-growth environment. After trending down since 2017, M&A deals in the sector jumped to decade highs during the pandemic,

electromobility are seemingly driving the need for machinery companies to maintain a robust and evergreen portfolio strategy. The past two years have been particularly deal centric, with big corporations such as Epiroc, Sandvik and Caterpillar,

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