Automotive Newsletter Q2 2018
M&A and financial market statistics in the automotive industry
In Q2 2018, M&A activity increased compared to Q1 2018. The number of completed deals grew by more than 40% and the aggregated deal value of completed deals also increased.
While the market for traditional ICE related product segments and technologies undergoes further consolidation, we observe ever increasing M&A and capital raising activity in the areas of electric vehicles, autonomous driving and connectivity solutions, driven by automotive OEMs and Tier 1s, tech companies and financial investors alike.
Overall, automotive multiples have decreased throughout all regions. EV/EBITDA multiples declined by 9% in Europe, by 5% in North America and by 11% in Asia. EV/EBIT multiples contracted by 5% in Europe, by 11% in North America and by 7% in Asia.
Top M&A Deals Q2 2018
- Blackstone Group LP, the listed US-based private equity firm, has agreed to acquire Comstar Automotive Technologies Pvt. Ltd (CAT), an India-based company engaged in the design and manufacture of starting and charging systems for passenger cars and commercial vehicles.
- CTEK Sweden AB, a Sweden-based manufacturer and designer of battery chargers, has acquired ChargeStorm AB, a Sweden-based developer of intelligent charging stations for electric vehicles, for an undisclosed consideration. The transaction is in line with CTEK’s strategy to expand its business by entering the electrical vehicle sector.
- Bharat Forge Ltd., the listed India-based manufacturer of automotive components, has acquired a 35.26% stake in Tevva Motors Limited, the UK-based company engaged in developing and producing hybrid range extended electric trucks, for a consideration of €11.4m.
- Luxshare Precision Industry Co., Ltd., the listed China-based company engaged in the provision of automotive interconnection products, has agreed to acquire the Global Body Control Systems (BCS) business, from ZF Friedrichshafen AG, a Germany-based manufacturer of automotive components, for an undisclosed consideration.