To date, Bluefield has recorded 103 deals in 2023, which is lower than the 174 deals recorded during the same period in 2022. This represents a 41% decrease in deal flow. Declines were consistent across the board in all segments, particularly in the Hardware and Infrastructure segment in the U.S.
While M&A activity in the water industry appears to be softening, it is not all negative. Several large-scale, high-value acquisitions have occurred in 2023, namely Xylem’s acquisition of Evoqua and Solenis’ acquisition of Diversey. More recently, the competing bids for Uponor by Georg Fischer and Aliaxis can now be added to the list.
Most water sector segments have reported easing supply chain constraints, inflation, and economic stagnation. Looking forward to the second half of the year when M&A activity is typically stronger, Bluefield expects that deal flow will hasten but continue below the five-year average.
In this Quarterly Review:
- Investor-owned utility confirmed deals slow, but the new application pipeline remains strong
- Digital water M&A continues at modest pace while top-line growth in the sector booms
- M&A activity among financial institutions slows slightly
