Automotive Newsletter Q3 2018
M&A and financial market statistics in the automotive industry
In Q3 2018, M&A activity decreased compared to Q2 2018. The number of completed deals declined by approx. 30% and the aggregated deal value of completed transactions reduced to c. €2bn.
M&A and capital raising activity in the areas of electric vehicles, autonomous driving and connectivity solutions is steadily increasing, not only by strategic investors, but also driven by financial investors such as private equity funds, venture capital, family offices and private investors.
In Q3 2018, automotive multiples increased slightly in Europe with EV/EBITDA multiples rising 3% and EV/EBIT multiples increasing by 1%. In North America and Asia multiples decreased: EV/EBITDA declined by 2% in North America and by 2% in Asia whilst EV/EBIT stayed the same in North America and contracted by 1% in Asia.
From a sub-sector perspective, automotive engineering multiples developed best between Q2 and Q3 2018 given a 16% increase in EV/EBITDA and are predicted to rise 29% during 2019.
Due to the current political tensions between the US and Chinese administration in terms of trade tariffs, we are observing an even increasing focus of Chinese strategic acquirers on European companies.
Top M&A Deals Q3 2018
- Grok Ventures and Blackbird Ventures, an Australian private investment company and an Australian venture capital firm respectively, have acquired an undisclosed stake in Zoox, Inc., the US autonomous vehicles developer, for a consideration of €428m.
- An undisclosed China-based investor has agreed to acquire an undisclosed stake in Dearcc, a China-based new energy vehicle startup, for a consideration of €252m (CNY 2bn).
- Ring International Holding AG, an Austria-based company engaged in manufacturing and marketing of stationery and special coatings products, has acquired BOA Group, the German manufacturer of flexible, mechanical components for exhaust systems and engine management, for an undisclosed consideration.
- Shanghai Lantu Information Technology Co., Ltd., the Chinese company providing an online platform for automotive peripheral parts, has been acquired by an investor group led by Tencent Holdings, Ltd., Carlyle Asia Growth Partners Group and Sequoia Capital China, for a consideration of €387m.