US investors pursue German Mittelstand firms as deal values rise
Deutsche Welle reports sustained US interest in German industrial businesses, even as Bundesbank figures show a drop in overall US investment flows to Germany.
US investors continue to pursue Germany’s family-owned industrial firms, Deutsche Welle reported on 20 October 2026, as succession gaps and specialist manufacturing expertise bring businesses to market. The value of reported deals has risen, although broader US investment flows into Germany fell last year.
Citing PitchBook, DW reported that US investors took part in 76 acquisitions and investments in German industrial and manufacturing companies in 2025, worth about $29.5 billion. That was nearly twice the transaction value recorded in 2022. By 19 August 2026, the value for this year stood at $23.9 billion.
Why German industrial firms attract US buyers
Samar-Ahmad Albrecht-Mahmood of Veracity Capital Investments told DW that many of these companies have specialised products, established customer relationships and technical expertise built over decades. Some owners are also reaching an age at which they want to sell but have no family successor, he said. He cited comparatively moderate valuations as another attraction for international buyers.
One prominent transaction concerns Mulfingen-based electric motor and fan maker ebm-papst. DW described a $5.4 billion purchase by US company Madison Air in August. Ebm-papst’s announcement says its owner families signed an agreement to transfer their shares, values the transaction at €5.1 billion on an enterprise basis and expects closing around the end of 2026.
DW also reported that Bain Capital acquired a 51% stake in Everllence, formerly MAN Energy Solutions, in June. It cited PwC’s Destination Germany report as finding that the number of acquisitions and equity investments had not risen, even as their total value increased. PwC highlighted Carlyle’s roughly €7.7 billion acquisition of BASF Coatings with the Qatar Investment Authority, agreed in October 2025 and closed in June 2026.
Deal values and investment flows tell different stories
The larger deals do not mean that all US investment in Germany is increasing. According to Bundesbank figures reported by DW, US investment flows into Germany were €11.8 billion in 2025, nearly 44% below 2024. Total foreign direct investment in Germany rose from €57.4 billion to €86.1 billion over the same period.
An American Chamber of Commerce in Germany survey cited by DW found that 62% of US companies active in the country expected business conditions to improve over the next three to four years. Some 52% planned to expand their German operations, compared with 49% in 2024. Albrecht-Mahmood said interest in strong German industrial companies remained high, while annual deal numbers could vary.
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Sources and context
- US investors increasingly snapping up Germany's famed Mittelstand industrial championsDeutsche Welle
- ebm-papst and Madison Air announce acquisition agreementebm-papst
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.