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Race to Acquire New Technology Fuels Rising M&A Transactions

Date: May 22, 2018

Annual report from the Automotive Aftermarket Suppliers Association and Jefferies LLC shows record M&A transaction driven by new technology acquisitions

RESEARCH TRIANGLE PARK, N.C. – The race to acquire technology fueled a rising number of M&A transactions in 2017, according to the annual report from the Automotive Aftermarket Suppliers Association (AASA) and Jefferies LLC: Automotive Aftermarket Investment Report.

OEMs, tier 1 suppliers, non-automotive technology companies, private equity firms, and select aftermarket players all placed bets on various auto-tech companies in 2017, according to the report. These acquisitions highlight four main auto-technology themes:

  • Changing Personal Mobility
  • Autonomous Driving
  • Vehicle and Driver Connectivity
  • Increased Vehicle Electrification

Six of the last seven years have posted more than 100 M&A aftermarket transactions, and 2017 was a strong year for M&A transaction volume with more than 160 transactions occurring in North America and Europe. The industry remains attractive to both strategic and financial buyers due to favorable industry tailwinds which include growing and aging car parc, increasing vehicle utilization and miles driven, and low fuel prices (although gas prices are now on the rise). Complementing these are a healthy U.S. economy, rising disposable income and inexpensive debt.

In 2017, approximately 83 percent of transactions involved a strategic buyer, a level of strategic involvement that is in line with the last five years’ average. Of that 83 percent, approximately 40 percent of the acquirers were private equity-backed. Of deals completed in 2017, 37 had disclosed prices -- 19 of which had total transaction value exceeding $250 million.

The 2017 Automotive Aftermarket Investment Report is annual review of automotive aftermarket mergers and acquisitions, and equity activity is provided to AASA members by Jefferies LLC and AASA. The purpose of this publication is to touch on notable transactions that occurred in 2017 and discuss deal trends in the aftermarket landscape.

For more information about AASA’s industry analysis offerings, contact Philip Atkins, AASA director, strategic research and planning.

Media Contact: Margaret Beck, 919-406-8828 or media@mema.org

About AASA

AASA (www.aftermarketsuppliers.org) exclusively serves manufacturers of aftermarket components, tools and equipment, and related products, an important part of the automotive parts manufacturing industry which supports 871,000 American jobs. AASA is a recognized industry change agent – promoting a collaborative industry environment, providing a forum to address issues and serving as a valued resource for members. AASA is the light vehicle aftermarket division of the Motor & Equipment Manufacturers Association (MEMA). “AASA, The Voice for the Automotive Aftermarket Supplier Industry”

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