October 02, 2025
Industrials are in the middle of a structural re-rating, and the deal tape proves it.
Once treated as a cyclical trade, the sector is now being reshaped by long-term drivers like reshoring, defense spending, and infrastructure investment. Capital is flowing into mission-critical assets, and valuations are following. Strategic buyers are clearing auctions at premium multiples, while sponsors are competing with carve-outs, niche roll-ups, and bolt-ons at more moderate levels.
This divergence reflects just how competitive Industrials have become – and why defensibility, scale, and positioning are the real drivers of platform value in today’s environment.
In this article, we’re highlighting ten of the largest industrial deals of 2025 so far, and what they signal for sourcing and execution heading into 2026.
Home Depot, through its specialty distribution subsidiary SRS Distribution, completed its acquisition of GMS in a transaction valued at $5.5 billion. The deal strengthens SRS’s position as a leading multi-category building materials distributor and brings expanded capabilities across drywall, ceilings, steel framing, and other specialty products. It also underscores Home Depot’s strategy to grow share with professional contractors by integrating distribution scale into its pro-focused offering.
Lowe’s continued the trend of mega-deal activity in distribution with its $8.8 billion acquisition of Foundation Building Materials from Clayton, Dubilier & Rice and American Securities. The transaction highlights how scale platforms are reshaping building materials and distribution.
Coherent Corp. entered into a definitive agreement to sell its Aerospace and Defense business to Advent International for $400 million. The carve-out includes approximately 550 employees and 10 sites worldwide, with expertise in optical and laser systems for defense applications. Proceeds will be used by Coherent to reduce debt, while Advent plans to invest heavily in R&D to expand the business’s leadership in mission-critical laser and optical technologies.
At ~$2.35 billion, Apollo’s acquisition of Kelvion underscores the growing importance of critical infrastructure technology. Demand for datacenter cooling, advanced HVAC, and thermal management is accelerating as AI infrastructure and energy transition projects expand.
In a $2.1 billion transaction, CRH acquired Eco Material Technologies, reflecting the surge in demand for sustainable inputs. ESG mandates and regulatory codes are driving sustained adoption of low-carbon materials, and strategics are moving quickly to secure supply.
TransDigm’s $765 million acquisition of Simmonds Precision Products highlights the premium valuations being paid for aerospace subsystems with high backlog visibility and switching costs.
AeroVironment announced plans to acquire BlueHalo, a defense technology firm known for drone swarm and counter-drone systems, in an all-stock transaction valued at approximately $4.1 billion. The deal creates a diversified defense technology company with offerings across uncrewed systems, loitering munitions, counter-UAS, electronic warfare, and AI-enabled autonomy. This combination reflects the growing demand for unmanned and autonomous systems in national defense.
FalconPoint Partners acquired SMS, a provider of outsourced mill services including environmental management, scrap handling, and marine vessel decommissioning. While the purchase price was not disclosed, FalconPoint committed $500 million of growth capital to support expansion. SMS operates across the U.S., Europe, and South America, serving steel mills and maritime clients with mission-critical services. The investment highlights the attractiveness of industrial services platforms with long-term contracts and strong safety records.
SGS signed a definitive agreement to acquire Applied Technical Services (ATS) for $1.325 billion. ATS is expected to generate $460 million in sales in 2026. The acquisition expands SGS’s North American footprint, especially in regulated and compliance-driven testing, inspection, and certification (TIC) markets such as aerospace, manufacturing, and power. It also accelerates SGS’s goal to double its U.S. sales by 2027.
TopBuild acquired Progressive Roofing, a Bow River Capital portfolio company, for $810 million in cash. Founded in 1978, Progressive generated $438 million in revenue in the last year, with about 70% from non-discretionary re-roofing and maintenance. With 1,700 employees across 12 branches, the deal highlights consolidation potential in the $75 billion fragmented commercial roofing market.
These ten transactions highlight the structural shift playing out across Industrials.
Mega-deals in distribution, growth-multiple acquisitions in aerospace, and sponsor-backed expansions in industrial services are all pointing in the same direction: Industrials are no longer cyclical. They’re central to long-term investment theses around infrastructure, sustainability, and national security.
For dealmakers, the challenge isn’t identifying the trend, it’s acting on it. That requires faster access to relevant data, visibility into private transactions, and the ability to surface targets before they become competitive processes.
Dakota Marketplace helps deal teams do exactly that. With sector-wide coverage, searchable transaction comps, and tools for pinpointing roll-up opportunities, marketplace enables teams to spend less time researching and more time sourcing.
To explore more information on industrials or other sectors, book a demo of dakota marketplace!
Morgan Holycross is a Marketing Manager at Dakota.
