The pace of mergers and acquisitions continued to decline across the industrial products sectors during the first half of 2009 compared to the first half of 2008, according to a series of quarterly M&A reports released by PricewaterhouseCoopers LLP. Deal volume and value in the global transportation and logistics and industrial manufacturing industries slowed significantly in the first half of 2009 as economic uncertainties continued to dominate the global metals economy.

In industrial manufacturing, the pace of deal volume (measures by the number of deals with a disclosed value of at least $50 million) declined 71% to 26 deals in the first-half 2009. Only 12 deals were announced in the second quarter 2009, a steep drop from 47 in the prior year. Large deal activity (defined as deals with a disclosed value of at least $1 billion) has continued to be dramatically lower than historical levels. In first-half 2009, there were no large deals.

Total deal value in industrial manufacturing was $4 billion, down 85% from first-half 2008. Average deal value decreased by 48%.

Deal volume in the transportation & logistics sector was down 45% in the second quarter of 2009, and overall deal value dropped 55%.

During the first half of 2009, North American and Asia & Oceania buyers were responsible for 69 percent of M&A activity (as measured by deal volume) in the industrial manufacturing sector, a significant increase from 55 percent in the first half of 2008. Buyers in Asia & Oceania accounted for 42 percent of deal volume. For the transportation & logistics sector, BRIC countries led deal activity accounting for 20% of acquirers in the period.

The outlook on deal activity and deal value for the rest of 2009 is following along the same path we saw in the first half of the year," said Dean Simone, U.S. industrial products leader at PricewaterhouseCoopers. "Lack of financial investors, tight capital markets and the practically nonexistent large deal activity suggests we haven't turned the corner just yet in the industrial products sector. We are seeing some signs of hope in the Asia & Oceania region, but, by and large, we remain off the pace of 2007 and 2008 activity.