2025 Australian Manufacturing M&A Report: $1.2B in Deals Signals Transformation for Mid-Market Sellers
Morgan Business Sales’ latest report reveals over $1.2 billion in disclosed transaction value across 35 major Australian manufacturing deals under AUD$200 million from 2024-2025, averaging $34.3 million per transaction.
Mid-Market Resilience Amid Headwinds
Australian manufacturing M&A showed remarkable strength despite 48% energy cost surges since 2019, compressed EBITDA margins at 9%, and a contracting PMI of 49.7 in October 2025. The federal government’s $22.7 billion “Future Made in Australia” initiative drives localisation, creating tailwinds for high-tech manufacturers while fragmented sectors like packaging and food processing offer roll-up potential.
Premiums of 15-25% go to businesses with digital capabilities, sustainability credentials, and defensive end-markets, positioning them ahead in a two-tier market.
Hottest Sectors and Deals
Packaging led consolidation with standout transactions like IVE Group’s $35 million JacPak acquisition for fibre-based entry and TricorBraun’s roll-up of Plas-Pak WA, UniquePak, and Alplas Products. Food processing saw the SPC Global merger creating a $400 million revenue platform, while specialised equipment drew $40 million NRFC investment in RME and Scanfil’s $54.4 million SRX Global buy.
Victoria and NSW captured 65% of deal value, with Queensland rising in food and packaging; mid-market ($10-50 million) dominated at 73% of activity.
Valuation Drivers for Sellers
Median multiples hit 8.3x EBITDA, with technology-enabled firms at 8-12.3x versus 4.7-6.6x for traditional operations. Boost multiples by prioritising automation (>60% lines), IoT predictive maintenance (+1.0x), recycled content >30% (+1.0x), and no single customer over 20% (+0.5x).
Defensive sectors like food and healthcare command 20-30% premiums; supply chain resilience adds 10-15% amid localisation urgency.
Buyer Trends and 2026 Outlook
Strategic buyers (68% of deals) chase integration, outpacing PE’s larger checks; Q1 2025 peaked at 12 deals before moderating. January 2026’s mandatory ACCC regime accelerates timelines now, favouring prepared sellers.
Distressed assets like Pro-Pac emerge alongside thriving platforms, but quality wins: margins >15%, digital twins, and ESG moats secure top outcomes.
What This Means for You
Sellers: Use the report’s valuation benchmarks and market insights to position your company effectively.
Buyers: Better identify acquisition opportunities aligned with growth and innovation goals.
Read the Full Report
Read now and gain a comprehensive understanding of recent transactions, valuation benchmarks, and strategic insights shaping Australia’s manufacturing sector.
For a confidential, obligation-free discussion about how these insights could apply to your business, or to explore your options, contact the Morgan Business Sales team today.
📞 1300 577 297
📩 support@morganbusinesssales.com
