Engineering growth: Fourth-quarter 2015 engineering & construction industry mergers and acquisitions analysis

Février 2016

Deal activity remained strong in the E&C sector for 2015 with 227 deals, while average deal value declined as a result of the acquisition of smaller players in deals aimed at enhancing product offerings and expanding geographic coverage.

Engineering growth is PwC’s quarterly analysis of merger and acquisition (M&A) activity in the global engineering and construction (E&C) industry. It provides an overview of the most recent M&A results and our expectations for future deal activity.

Highlights of what this quarter's analysis revealed:

  • Construction firms primarily continued to remain focused on enhancement of their core competencies
  • In the fourth quarter, building material companies were active in M&A activity to strengthen their market position and business operations
  • Non-core businesses were shed as companies focused on core business operations either for strategic alignment or as a result of government pressure
  • Despite a rocky start in the beginning of the year resulting from harsh winter weather conditions, construction output in 2015 was expected to increase by 6%
  • The non-residential segment is booming, mainly driven by demand from industrial, office, and commercial construction
  • While, the deal value of civil engineering and construction machinery categories declined by more than half, to $23.1 billion (from $49.9 billion in 2014) and $20.9 billion (from $45.7 billion in 2014), respectively

Février 2016 – 12 pages – En anglais

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Benjamin Ribault
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Associé responsable du secteur Ingénierie et Construction
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