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Flow control: sector update

Flow control: sector update

Insight into current market themes, notable M&A transactions and valuation trends in the global flow control sector with a focus on original equipment manufacturers (OEMs).

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Flow control: sector update, Outline of factory in front of orange sky

Insights in this publication are derived from an analysis of a selected Flow Control Peer Group (FCPG), which comprises listed businesses considered to be key players in the global flow sector.

Notable themes impacting the flow control sector

Our FCPG exhibited a year of volume growth across most end markets as rationalisation activities, initiated over the last few years, started to come to an end. For many operators internal priorities pivoted towards a focus on medium to long term value creation for shareholders, through a range of factors, a selection of which comprised:

  • Market diversification
  • New product developments
  • Leadership and skills gaps 
  • Supply chain reassessment
  • Focus on value enhancing M&A

M&A activity, valuation trends and outlook

The FCPG was highly active in 2017, with 17 out of 28 companies conducting M&A in the year. The majority of this activity was represented by transactions in North America, across industrial technology, oil and gas, water and general industrial markets.

Transformational M&A activity will be a significant feature of 2018. Key market themes of Industry 4.0, diversification strategies and shifting end market focus will be expected to underpin acquisition strategies going forward.

Download our Flow control: sector update to find out more.

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