According to data from law firm Irwin Mitchell, there was a 29.2% increase in the number of private equity-backed transactions in the sector despite a 6% fall in the total number of deals in manufacturing.
The study found that across England, 28.5% of M&A in the sector was supported by venture capital, while 12 months ago the figure stood at 20.6%.
Manufacturing businesses in the South East were the subject of almost a third (31.5%) of all M&A in the sector. The North West was home to 14.4%, while the North East saw just 4% of activity.
Twenty seven per cent of private equity backed manufacturing deals were in the South East, however this fell from 33.7% the year before.
Irwin Mitchell’s Andrea Cropley said: “Although deal levels reduced, there were some encouraging signs in relation to private equity. The manufacturing sector is clearly attractive at the moment. Faced with this growing appetite and an improving economic picture, ambitious companies here in the UK should seriously consider this option whilst they explore opportunities for developing and growing their business.”
Copyright Ken Hurst 2014