When most people think of private equity, manufacturing isn’t usually the first industry that comes to mind. Yet, recent data tells a different story—one of strong and sustained interest in industrial businesses that are quietly powering some of the most active deal-making in the middle market.
According to Private Equity Info, over the past two years, there have been more than 1,060 manufacturing-focused private equity transactions, a surprising figure that underscores the sector’s enduring appeal. Most notably, 580 of these deals involved U.S. PE firms investing domestically—far surpassing the number of outbound (89) and inbound (27) transactions, a sign of confidence in American manufacturing resilience.
Where Capital is Flowing
Ten manufacturing subsectors stood out as hotbeds of PE activity:
Pharmaceutical and Medicine Manufacturing
Medical Equipment and Supplies Manufacturing
General Purpose Machinery Manufacturing
Navigational, Measuring, Electromedical, and Control Instruments
Plastics Product Manufacturing
Semiconductor and Other Electronic Components
Electrical Equipment and Component Manufacturing
Architectural and Structural Metals
Aerospace Products and Parts
Food Manufacturing
The diversity of these sectors reflects a blend of innovation, infrastructure, and healthcare—three areas that continue to see secular tailwinds.
Healthcare Manufacturing Stands Out
Two subsectors—Pharmaceutical Manufacturing and Medical Devices & Supplies—are drawing particularly deep interest. These industries combine regulatory clarity with steady demand, recurring revenue potential, and innovation that aligns with aging population trends. For PE firms, they offer an ideal balance of scalability and defensibility.
Examples of Recent Transactions
Select deals that exemplify this trend include:
SK Capital Partners acquired Spectrum Vascular, a vascular access device firm.
McNally Capital acquired Jewett Automation, a general-purpose machinery manufacturer.
Argentum Group backed JessCo Solutions, a provider of emission control instrumentation.
Patriot Capital invested in Libra Industries, a contract manufacturer in the semiconductor space.
Industrial Growth Partners supported SENS, a maker of power systems for critical infrastructure.
Cordatus Capital invested in Red Dot Buildings, serving the architectural metals segment.
Argonaut Private Equity backed Pryer Aerospace, an aerospace component manufacturer.
Clover Capital Partners invested in Felbro Culinary Specialties, a food manufacturing company.
These deals signal strong interest in companies with defensible market positions, engineering depth, or specialized manufacturing capabilities.
Our Perspective
We see this as more than just a temporary spike—it’s a strategic shift. Manufacturing companies, especially those that combine proprietary processes or products with strong management teams, are becoming increasingly attractive as platform or bolt-on investments. Rising reshoring trends, supply chain reconfigurations, and the critical nature of these businesses are all feeding the flywheel of investment.
Private equity firms are recognizing that American manufacturing isn’t just essential—it’s investable.
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