Test & Measurement Industry Update Fall 2024

Read more about M&A activity and trends in this sector

Test & Measurement Newsletter

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M&A Market Update and Commentary

Test & Measurement (“T&M”) M&A transaction volume and transaction value increased 59.1% and 337.6%, respectively, in Q3 2024 vs. Q3 2023 as several significant transactions were announced in Q3 with momentum continuing in early Q4 2024

Select Notable Transactions

  • Spectris announced the $630M (~18.0x EBITDA(1)) acquisition of Micromeritics, a provider of analytical instrumentation for the physical characterization of particles, powders, and porous materials across research, product development, and quality control, from SFW Capital in July 2024
  • KKR announced the acquisition of Marmic Fire & Safety, a provider of regulation-mandated fire equipment inspection, testing, and maintenance services, from HGGC in July 2024
  • Spectris announced the $260M (~21.5x EBITDA1) acquisition of SciAps, a specialist provider of handheld instruments for identifying compounds, minerals, and elements in materials, from Rand Capital in July 2024
  • Bureau Veritas announced the €360M divestiture of its food testing business to Mérieux NutriSciences in October 2024

Continue to see record interest and strong activity in the TICC sector despite persistent lethargy in the broader M&A market

KPMG CF2 closed three T&M transactions globally in September and October 2024 as leading test & measurement companies continue to garner significant attention in the current market environment

Sector Spotlight | Predictive Maintenance is Emerging Growth Vector

Predictive maintenance is revolutionizing the way industries approach machinery and equipment upkeep, harnessing the power of data analytics and IoT technologies to predict equipment failures before they occur. This foresight not only enhances operational efficiency but also significantly reduces downtime and maintenance costs for customers, while creating significant new commercial opportunities for providers across the T&M landscape

Key Takeaways

  • Customers are finding significant value in predictive maintenance. On average, operators achieve only ~30% of the equipment optimal useful life due to excessive wear driven by lack of preventative maintenance
  • This customer value creation is driving a large, rapidly growing market opportunity
  • Advancements in technology are enabling increased adoption and commercialization of predictive maintenance tools and services
  • Dynamics are creating attractive opportunities for innovation and new recurring revenue streams across the T&M landscape
  • These key themes are attracting strong strategic and financial buyer interest

We hope you find this information valuable, and as always, feel free to reach out if you would like to discuss in further detail. To read the full report, download the PDF below.

Footnotes:

  1. Non-synergy adjusted
  2. Represents the global Corporate Finance practices of KPMG International’s network of independent member firms.
    Notes: M&A analysis based on deals announced during the respective periods. Deal value represents aggregate deal value for disclosed transactions during the respective periods

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