Search Insights

Following a global market slowdown in the first half of 2020 due to the COVID-19 pandemic, M&A activity in the North American agriculture industry continued its rebound in Q1 2021, with quarter-over-quarter increases in disclosed transaction value from $4.6 billion to $5.1 billion and transaction volume from 98 to 113.

Oil prices continued to increase in Q1 2021, as bullish forecasts on recovering demand this summer outweighed concerns about the impact of rising COVID-19 cases in India, Japan, and Brazil.

In Q1 2021, transaction volume in the North American manufacturing sector rose back to over 100 deals, while transaction value fell compared to the previous quarter. Total disclosed transaction value increased 22% from $45.9 billion to $56.1 billion year-over-year (YoY), but still remained below the quarterly five-year average of $87.2 billion. The number of disclosed deals during the quarter slightly decreased to 106 from 108 YoY, also below the quarterly five-year average of 134.

M&A activity in the North American food and beverage industry continues to experience significant growth, achieving transaction values and volumes seen prior to the onset of the COVID-19 pandemic. Transaction volumes increased from 203 deals in Q4 2020 to 217 deals in Q1 2021, marking the impressive comeback of the food and beverage industry. Total transaction value in Q1 2021 remains robust, however it fell from $20.5 billion in Q4 2020 to $11.6 billion in Q1 2021. The decrease in transaction value from the preceding quarter was primarily attributable to Inspire Brands Inc.’s $12.3 billion acquisition of Dunkin’ Brands Group Inc. in Q4 2020.

2020 was a strong year for M&A activity in the North American dealership industry. From 2019 to 2020, disclosed transaction value increased from $925 million to $3.3 billion, and the number of transactions increased from 23 to 43.

Engineering and construction merger and acquisition (M&A) activity in Q1 2021 exceeded $1.3 billion in disclosed transaction value across 165 deals in Canada and the US. US transactions accounted for 148 of these deals, representing the largest quarterly volume in the past four years. The largest transaction in the quarter was US based, and involved Leidos Holdings Inc.’s acquisition of Gibbs & Cox Inc. for $478 million. In the last 12 months,95% of acquirers have been strategic parties while 5% have been financial buyers. Strategic acquisitions continue to drive industry activity, as participants target expansion into new markets and mitigating skilled labour shortages.