A new report on $1.2B of Australian manufacturing M&A reveals 35 key mid-market deals and the features driving premium sale outcomes.
QUEENSLAND, QLD, AUSTRALIA, February 23, 2026 /EINPresswire.com/ — Australian manufacturing is undergoing a decisive reshaping of ownership, with fresh analysis of $1.2 billion in disclosed M&A activity showing where capital is flowing and which businesses are commanding the strongest prices. The 2025 Australian Manufacturing M&A Report from Morgan Business Sales examines 35 major deals under AUD$200 million completed between 2024 and 2025, providing visibility into mid-market transaction values, multiples and buyer behaviour. Positioned as a practical guide for owners, directors and investors, the report moves beyond headlines to unpack the operational and strategic traits that separate premium assets from the rest of the market.
The study highlights a sector demonstrating resilience despite significant macro and cost headwinds. Rising energy prices, margin pressure and a contractionary manufacturing environment have not prevented committed acquirers from pursuing high-quality manufacturing platforms. At the same time, federal initiatives such as the “Future Made in Australia” agenda are accelerating localisation, onshoring and investment in advanced production, setting the backdrop for continued deal activity. Within this environment, the report notes that not all vendors are achieving equal outcomes, with a clear divide between technology-enabled manufacturers and more traditional operators.
Across the dataset, valuation multiples generally sit in the mid to high single digits, but technology-led businesses with stronger margins and clear strategic relevance are achieving significantly higher ranges. Operations that have invested in automation, digital monitoring, predictive maintenance and advanced quality systems are shown to be trading at healthy premiums to peers. By contrast, plants with limited modernisation, customer concentration and weaker profitability are clustering toward the lower end of the multiple spectrum. The result is a two-speed market in which capability and sophistication are now central to price discovery.
Sector analysis within the report identifies packaging, food processing and specialised equipment manufacturing as focal points for both strategic and financial buyers. Transactions referenced in the report, spanning fibre-based and rigid packaging, food platforms and specialised equipment and electronics manufacturers, are used to illustrate buyers’ preference for defensible niches, proprietary know-how and exposure to resilient end-markets such as food, healthcare, resources and critical infrastructure. Geographic patterns are also explored, with eastern states leading overall activity and Queensland highlighted as an emerging hub in selected sub-sectors.
The report devotes significant attention to practical valuation drivers that owners can influence in advance of a sale. Higher levels of plant automation, the use of recycled inputs, diversified customer bases and robust ESG credentials are all associated with improved pricing outcomes in the transactions analysed. Businesses that can demonstrate recurring revenue, strong safety performance and secure supply chains are also shown to fare better in negotiations. Taken together, these factors form what the report characterises as a practical playbook for manufacturers aiming to move into the premium valuation bracket before coming to market.
Buyer behaviour is another key theme, with strategic acquirers accounting for a clear majority of the deals reviewed. Corporate buyers are using M&A to gain scale, expand product ranges, strengthen vertical integration and enter adjacent markets, while financial sponsors remain active where platform-quality assets are available. The timing and structure of deals are already being influenced by Australia’s evolving regulatory landscape, including the introduction of a new mandatory merger regime from January 2026, which the report notes is encouraging better-prepared sale processes and more rigorous documentation.
In its concluding sections, the 2025 Australian Manufacturing M&A Report outlines a cautiously optimistic outlook for the sector. It argues that macro uncertainty and regulatory scrutiny will continue to demand better preparation from sellers, but also that substantial capital remains available for high-quality manufacturing businesses that can demonstrate resilience, innovation and strategic relevance. The report is positioned as an essential reference for stakeholders seeking to benchmark valuation expectations, understand current buyer priorities and design value-creation initiatives ahead of a potential transaction.
The 2025 Australian Manufacturing M&A Report is available from Morgan Business Sales at:
https://morganbusinesssales.com/2025-manufacturing-sector-ma-report/
Mr Dru Morgan
Morgan Business Sales
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