Explore more Categories
Artificial Intelligence involves the science and engineering of developing intelligent machines
The manufacturing world is at a cusp of a new revolution that will redefine conventional business models
IoT will have a major impact on businesses and consumers in the future
The world is creating 2.5 exabytes of data daily
Our research seeks to connect-the-dots across multiple trends
Personal Robots are Set to Be a $19 Billion Market
Strategic Analysis of BREXIT and its Implications to Industries, Economies and Societies
iFrost is a digital platform for interactive and dynamic reporting of data.
The TOEs are a great source of information which gives corporates critical information on companies to action for their strategic investments either as an open source platform or to collaborate and to develop successful products
Complementary Product Portfolio Expansion Fueling M&A Activities
save 10 %
* Required Fields
Pay by invoice
The overall outlook for M&A activity continues to be positive as private equity investment in the space continues to grow at a healthy rate. The industry continues to be fragmented, which in turn provides an incentive to companies to consolidate. Additionally, companies are looking to become one-stop shop providers of PPE. Innovation continues to be incremental rather than groundbreaking. Acquisitions are unlikely to be driven by the need to acquire a new technology as the market is still in its acceptance of smart PPE. Product segments are in different stages of the maturity curve. For example, in Western Europe, gas detection, respiratory protection, industrial protective clothing, and fall protection are further along the maturity curve driving the need for further consolidation. Notable transactions in this period included 3M's acquisition of Scott Safety, Bunzl's acquisition of Tillman, MSA's acquisition of Globe Manufacturing, and Ansell's acquisition of Nitritex Limited. These acquisitions were mainly driven by the need to address gaps in the safety portfolio. Other factors that are likely to drive acquisitions are the need for geographic expansion. The regulatory framework is robust in North America, which has resulted in the emergence of a number of small PPE companies focused on niche areas. Additionally, there is expected to be further consolidation as the market continues to be very fragmented. In Europe, falling margins are expected to drive M&A activities. Companies are likely to spin off businesses that do not align with their overall growth strategy. Ansell's acquisition of Nitritex Limited was driven by the need to integrate a high-margin business into the product portfolio. Additionally, end-users awareness of safety requirements is increasing in a number of end-user industries such as construction, manufacturing, and oil & gas. For example, awareness of height-safety training has been increasing. This has prompted MSA's acquisition of Latchways Fall Protection. Other reasons that drive acquisitions include the need for strengthening presence in a number of end-user verticals. For example, Bunzl's acquisition of Tillman was prompted by the need to strengthen the business in welding gloves and leather protective garments. Going forward, there is unlikely to be any slowdown in committed acquisition spending, as market participants continue to expand product portfolios as well as their geographic presence. It is also important that certain regions such as south-western European countries and Iberia are expected to offer key growth opportunities. The overall compliance landscape is also expected to change. For example, rising employee awareness about liabilities is expected to boost compliance rates. This, in turn, is expected to boost demand for PPE. Manufacturers may acquire other companies to boost their product portfolios to meet surging demand. To sum up, acquisitions are likely to be driven by the following factors, namely (a) falling margins, (b) search for growth and yield, (c) deployment of unspent capital, (d) expanding range of products, and (e) access to specific markets.
Snapshot of the Benelux PPE Market, Forecast to 2023
Americas Oil and Gas Personal Protective Equipment Market, Forecast to 2023
Europe and Commonwealth of Independent States Oil and Gas Personal Protective Equipment Market , Forecast to 2023
Asia Pacific Oil and Gas Personal Protective Equipment Market , Forecast to 2023
Middle East and Africa Oil and Gas Personal Protective Equipment Market , Forecast to 2023
Global Oil and Gas Personal Protective Equipment Market , Forecast to 2023
Analysis of North America Industrial Hand Protection Market
Iberian Personal Protective Equipment Market, Forecast to 2023
Personal Protective Equipment Growth Opportunity (GO) Engine
European PPE Market by Industry
smart grid market
commercial aircraft market forecast
residential solar market
agricultural drones market
natural flavors market
glucose monitoring devices market
electric vehicle market analysis
Fill in the fields below to receive a sample report
Don't have an account? Create One!
Enter your Email Address here to receive a link to change password.
If you are an existing frost.com user, please register using the same email for seamless access
Already have an account? Login!
Use your Linkedin account to login or register within our store.You're just one click away.