Investment Banking firm PMCF released its Q225 M&A Pulse Reports recapping merger & acquisition activity in both distribution and industrial manufacturing.

MDM’s September M&A Roundup (Premium)

Distribution

In Distribution, PMCF found that M&A volume was negatively impacted by tariff uncertainty, leading to declines in dealmaking as companies elected to focus on shoring up their own operations. Globally, 149 Distribution transactions closed in 2Q25, down from 217 in 2Q24.  In the U.S., deal volume dropped from 106 in 2Q24 to 65 in 2Q25, underscoring the near-term impact of macro and policy headwinds.

Financial buyers’ investment activity remained relatively steady, increasing in the U.S. and only a modest decline in activity globally. According to the report, sponsors continued to pursue high-conviction theses and invest selectively in attractive businesses despite the challenging macroeconomic environment.

While deal volume declined, average transaction sizes spiked to $275M in 2Q25, compared to just $53M in 2Q24, reflecting strong demand for high-quality assets. PMCF noted the $600 million KCG-Foundation Building Materials merger as an example of strong demand for companies with durable cashflows and strategic positions in desirable sectors.

Access the full report here.

Industrial Manufacturing

M&A activity in the U.S. Industrial Manufacturing market declined in 2Q25, PMCF found, with 368 transactions recorded over the trailing 12 months, down from 397 in 2024. Global activity followed a similar path, falling to 1,151 transactions from 1,257 in 2024.

Financial buyer transactions in the industrial manufacturing sector rose 32.1% globally and 22.2% in the U.S. in 2Q25 compared to the same quarter the previous year. PMCA said the increase reflects the continued abundance of available capital, improved financing conditions and growing interest from financial buyers in acquiring scalable industrial platforms, driven by both organic growth opportunities and inorganic consolidation potential.

It was a different story for global strategic buyer transactions, which declined 22.0% in 2Q25 compared to the same period in 2024. According to PMCF, many active acquirers put M&A plans on hold amid uncertainty around trade policy, an issue that directly affects deal pricing, supply chains and long-term integration planning.

You can access the full report here.

Stay tuned for MDM’s 3Q25 M&A Report, detailing dealmaking activity during 2025’s July-September period.