2024 is anticipated to witness significant growth in merger and acquisition (M&A) activities in the Personal Protective Equipment (PPE) sector. According to a report by ISEA and ArkMalibu, large cash reserves held by strategic and financial buyers and confidence in economic conditions are driving this increase. The $2.6 trillion in private equity reserves and increased spending on local infrastructure are key factors behind this trend.
By the end of 2024, strategic buyers will use their excess cash to boost M&A volumes. Risks related to inflation and interest rates will raise valuation multiples for mid-sized companies. Government investments in local infrastructure will increase demand for PPE and industrial safety equipment as a byproduct of large projects.
This trend will lead to the acquisition of small and medium-sized companies by major safety equipment players. In 2024, private equity deals will make up about 50% of the sector’s transactions, continuing thanks to record levels of private equity accumulation and the aforementioned factors.
Compared to a slow start in 2023, M&A transaction volume will increase by 20% across all US industries in 2024. Several notable acquisitions have taken place in the PPE sector. Lakeland Industries acquired Jolly Safety Footwear for $9.6 million, strengthening its position in the first responder footwear market. Cadre Holdings acquired ICOR Technology for $40.3 million, expanding its product range. Lawson Products entered the PPE market by acquiring Emergent Safety Supply for $9.9 million.
The PPE market is expected to continue its M&A activity growth. Infrastructure spending and geopolitical tensions are increasing demand for PPE and industrial safety equipment. These factors are driving strategic and financial buyers to seek opportunities to expand market share and diversify product portfolios. In 2024, the PPE sector will sustain its growth through strong merger and acquisition activities.
Understanding and preparing for potential M&A opportunities in this dynamic market environment will be crucial for companies to progress successfully.
For detailed information: Safetyequipment
