Private equity firms are increasingly focused on add-on acquisitions, as we previously reported.
These investments play a crucial role in fueling growth to existing platform investments and employing a valuation multiple arbitrage strategy.
Analyzing add-on acquisitions data from our M&A Research Database at the 4-digit NAICS code level, we pinpointed the top 10 industries currently attracting the most interest from private equity firms.
Top 10 Industries of Interest for Add-On Investments
|
Rank |
NAICS Code |
Industry |
|
1 |
5112 |
Software |
|
2 |
5416 |
Management, Scientific, and Technical Consulting Services |
|
3 |
5413 |
Architectural, Engineering, & Related Services |
|
4 |
3254 |
Pharmaceutical and Medicine Manufacturing |
|
5 |
5239 |
Financial Investment Activities |
|
6 |
4246 |
Chemicals and Allied Products |
|
7 |
3334 |
HVAC and Commercial Refrigeration Equipment Manufacturing |
|
8 |
5417 |
Scientific Research & Development |
|
9 |
3313 |
Alumina and Aluminum Production and Processing |
|
10 |
4532 |
Office Supplies, Stationery, and Gift Stores |
Sample Private Equity Investments in Key NAICS Code Sectors
Software - September 2024
HgCapital's portfolio company Ncontracts (Brentwood, TN) acquired Venminder (Elizabethtown, KY) as an add-on investment.
Venminder is a provider of a unified Software-as-a-Service (SaaS) platform for third-party risk management.
Management, Scientific, and Technical Consulting Services – July 2024
Mountaingate Capital‘s portfolio company Bold Orange (Minneapolis, MN) acquired Journey 121 (Minneapolis, MN) as an add-on investment.
Journey 121 is a software as a service (SaaS) technology platform focused on supporting multi-location brands to deliver turnkey, personalized marketing programs.
Architectural, Engineering, & Related Services - September 2024
Brightstar Capital Partners‘s portfolio company Astrion (Huntsville, AL) acquired Axient (Huntsville, AL) as an add-on investment.
Axient is a provider of highly technical engineering and management support services.
Pharmaceutical and Medicine Manufacturing - September 2024
MVP Capital Partners‘s portfolio company ANI Pharmaceuticals (Baudette, MN) acquired Alimera Sciences (Atlanta, GA) as an add-on investment.
Alimera Sciences is a biopharmaceutical company that specializes in the research, development and commercialization of prescription ophthalmic Pharmaceuticals.
Financial Investment Activities - July 2024
Summit Partners's portfolio company Earned Wealth (New York, NY) acquired Thomas Doll (Walnut Creek, CA) as an add-on investment.
Thomas Doll provides physicians and dentists with full-circle financial care, including wealth management, retirement planning, tax planning and consulting services, including payroll expertise, practice creation, succession consulting, and personal consulting.
Chemicals and Allied Products - June 2024
Sterling Group‘s portfolio company White Cap (Norcross, GA) acquired Dayton Superior (Miamisburg, OH) as an add-on investment.
Dayton is a provider of highly engineered accessories, chemicals and forming solutions within the concrete construction industry.
HVAC and Commercial Refrigeration Equipment Manufacturing - September 2024
Kian Capital Partners‘s portfolio company Team Air Distributing (Nashville, TN) acquired Best Choice Supply (Lexington, KY) as an add-on investment.
Best Choice Supply is a HVAC wholesale distributor.
Scientific Research & Development - June 2024
LongueVue Capital‘s portfolio company Pinnacle Clinical Research (San Antonio, TX) acquired Dallas Research Institute (Dallas, TX) as an add-on investment.
Dallas Research Institute is focused on executing complex metabolic clinical trials in underserved communities supporting underrepresented patient populations.
Alumina and Aluminum Production and Processing - August 2024
American Securities‘s portfolio company Vibrantz Technologies (Houston, TX) acquired Micro Abrasives Corporation (Westfield, MA) as an add-on investment.
Micro Abrasives is a manufacturer of specialty alumina.
Office Supplies, Stationery, and Gift Stores – June 2023
JAL Equity‘s portfolio company Marketing.com (Plantation, FL) acquired American Stationery (Peru, IN) as an add-on investment.
American Stationery offers personalized stationery, personalized address labels and printed products.