Insight: UK manufacturing sector continues to attract overseas investors

Analysis by law firm Irwin Mitchell into the latest trends in manufacturing mergers and acquisitions (M&A) reveals that the UK continues to attract significant interest from overseas investors, despite a decrease in cross-border deals initiated by UK-based manufacturers.

Irwin Mitchell’s Corporate Team, which is currently advising South African-based, French, and US businesses on three large transactions within the UK’s manufacturing sector, utilised data from Experian’s Market IQ database to provide insights into the industry’s M&A landscape.

The analysis reveals that foreign interest in UK manufacturing businesses has remained strong, despite a decrease in the number of completed overseas deals initiated by UK-based manufacturing firms.

UK manufacturers continue to attract significant interest from overseas investors according to the latest analysis by Irwin Mitchell / Picture: Getty/iStock

Notably, 8% (43) of deals involving UK-based targets were completed by US bidders, highlighting a consistent level of interest compared to 8.5% (57) in the previous period and 7.4% (51) in the first half of 2022.

In contrast, in the first half of 2023, the number of completed overseas deals initiated by UK manufacturers fell to 107, compared to 140 in the second half of 2022 and 194 in the first half of 2022.

Emma Callow, corporate partner at Irwin Mitchell, said: “While there has been a decrease in cross-border manufacturing M&A deals initiated by UK-based manufacturers, it is encouraging to see that interest from overseas in UK businesses has remained steady. This reflects the ongoing appeal of the sector to international investors and their recognition of the value in acquiring UK-based ventures.

“At Irwin Mitchell, we are currently advising South African-based, French, and US businesses on three significant transactions within the UK’s manufacturing sector. This demonstrates the continued interest and confidence from overseas investors in the UK market.”

Irwin Mitchell recently published its latest report examining foreign direct investment into the UK.

You can download the full report below: