Q1 2025 Industrials M&A: Rail Sector Impact

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Introduction

In the first quarter of 2025, the industrials sector saw a surge in mergers and acquisitions (M&A), with 838 transactions totaling $99 billion in announced value. This represents a 10% increase quarter-on-quarter and a 7% increase year-on-year, according to a report.

Market Overview

Industrials M&A activity in Q1 2025 reached a total announced value of $99 billion across 838 transactions. This represents a 10% rise compared to the previous quarter and a 7% increase year-over-year.

Mega-Deals and Strategic Transactions

Mega-deal activity experienced a 58% increase quarter-on-quarter, with 20 transactions each exceeding $1 billion, accumulating $69 billion. One deal accounted for nearly a quarter of total industrials M&A value for the quarter and exemplified the convergence of infrastructure scale, geopolitical positioning, and supply chain strategy.

• Blackstone’s $5.7 billion acquisition of Safe Harbor Marinas, focusing on premium marina and superyacht infrastructure in the US.
• Bain Capital’s $4.2 billion purchase of Apleona Group, a Germany-based integrated facilities management firm.
• Apollo Global Management, Inc. and BC Partners’ $4.3 billion buyout of GFL Environmental Inc.’s environmental services business.

Thematic Drivers of Dealmaking

Supply chain considerations were the leading thematic catalyst, driving deals totaling $14 billion. ESG (Environmental, Social, and Governance) considerations, particularly environmental sustainability, were the second most influential theme, driving several substantial deals.

• Blackstone Infrastructure’s strategic entry into maritime infrastructure with Safe Harbor Marinas.
• AAM – American Axle & Manufacturing’s $2.6 billion acquisition of Dowlais Group plc.
• Mitsui O.S.K. Lines, Ltd.’s $1.7 billion acquisition of LBC Tank Terminals.
• Apollo Global Management and BC Partners’ $4.3 billion acquisition of GFL Environmental’s environmental services business.
• Aquarion Water Authority’s $2.4 billion acquisition of Aquarion Water Company from Eversource Energy.
• Haitian Water Group’s $2.2 billion acquisition of Sichuan Zhenxing Industrial Park.

These deals underscore how environmental considerations have moved from peripheral concerns to core business strategies, with companies actively acquiring capabilities to meet growing regulatory requirements and stakeholder expectations.

Conclusion

In Q1 2025, the industrials sector saw a rise in M&A activity, with 838 transactions totaling $99 billion. Supply chain and ESG considerations were key drivers behind these transactions.

Company Summary

AAM – American Axle & Manufacturing: A company that acquired Dowlais Group plc.

Apollo Global Management, Inc.: A company that was involved in the buyout of GFL Environmental Inc.’s environmental services business.

Aquarion Water Authority: A company that acquired Aquarion Water Company from Eversource Energy.

Aquarion Water Company: A company acquired by Aquarion Water Authority from Eversource Energy.

Bain Capital: A company that purchased Apleona Group.

BC Partners: A company involved in the buyout of GFL Environmental Inc.’s environmental services business.

Blackstone: The company that acquired Safe Harbor Marinas.

Blackstone Infrastructure: A company involved in maritime infrastructure with Safe Harbor Marinas.

Dowlais Group plc: A company acquired by AAM – American Axle & Manufacturing.

Eversource Energy: A company that Aquarion Water Authority acquired Aquarion Water Company from.

GFL Environmental Inc.: A company whose environmental services business was bought out by Apollo Global Management and BC Partners.

Haitian Water Group: A company that acquired Sichuan Zhenxing Industrial Park.

LBC Tank Terminals: A company acquired by Mitsui O.S.K. Lines, Ltd.

Mitsui O.S.K. Lines, Ltd.: A company that acquired LBC Tank Terminals.

Safe Harbor Marinas: A company acquired by Blackstone and Blackstone Infrastructure.

Sichuan Zhenxing Industrial Park: A company acquired by Haitian Water Group.

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