Morgan Business Sales Report Finds Australian Manufacturing M&A Deals Cluster at 3.0x-5.0x EBITDA

Morgan Business Sales has released its 2026 Australian Manufacturing Sector M&A Overview, analysing 39 transactions completed between 2021 and 2026.

QUEENSLAND, QLD, AUSTRALIA, October 6, 2026 /EINPresswire.com/ — The report, published in September 2026, examines the buyers active across Australia’s manufacturing sector, the types of businesses being acquired and the practical factors shaping value. It covers food and beverage processing, fabricated metal and structural steel, machinery and equipment, wood and timber products, printing, plastics and rubber, furniture, and textiles, clothing and footwear.

According to the report, verified Australian mid-market manufacturing transactions cluster around 3.0x to 5.0x EBITDA, with the result depending on subsegment, scale and the reliability of earnings. Multiples above 6x are described as generally reserved for platform-scale businesses with proprietary technology or a genuinely competitive sale process, rather than the typical operator generating between A$2 million and A$50 million in revenue.

The sector remains one of the largest and most varied parts of the Australian economy. The report notes manufacturing contributes close to $147.8 billion in gross value added, around 5.3% of GDP, and directly employs 900,770 people across 90,879 businesses nationally.

Succession is identified as the single biggest driver of deal activity in 2026. The report states that close to half of Australian small business owners are aged 50 or over, around one in five is 60 or older, and fewer than a quarter have a documented succession plan. Some 48% of Baby Boomer owners say they plan to exit within the next one to five years. Because much of the manufacturing mid-market remains founder-led, the report finds that succession planning started two to three years before a sale consistently produces a better outcome than planning in the final twelve months.

The analysis also points to a reversal in manufacturing’s long-term decline as a share of the economy, with the sector’s share rising from around 7.19% to 7.34%. Other demand drivers include government reshoring incentives through the National Reconstruction Fund, including a $1 billion zero-interest loan program for manufacturers investing up to $5 million, growing consumer preference for Australian-made products, and structurally strong private equity appetite for Australian industrials.

The transaction commentary highlights a clear split in food and beverage valuations. Branded pet food manufacturer SavourLife sold to CopRice at an implied multiple of around 7.3x EBITDA, while smaller branded acquisitions such as Beefy’s Pies and bWellness priced closer to 4x EBITDA.
Undifferentiated contract and commodity food processing typically traded at the lower end of the mid-market range or below.

Elsewhere, Metcash’s acquisitions of Alpine Truss and Bianco Precast in early 2024 were priced at 6.0x and 5.9x EBITDA respectively, reflecting a strategy of building vertically integrated building products manufacturing capacity. IVE Group’s acquisition of flexible packaging manufacturer JacPak Australia was priced at 5.8x FY23 EBITDA, or 4.2x including disclosed synergies. Machinery and equipment bolt-ons, including Mainetec, Force Technology, Wilson & Gilkes and PumpEng, consistently priced at or below 4x EBITDA where multiples were disclosed.

The report cautions that large platform transactions, such as Fantech at an implied 8.4x to 8.5x EBITDA and the Orora Packaging Solutions divestment at approximately 9.9x, should not set expectations for a typical mid-market sale. The gap reflects real differences in scale, risk, management depth and the number of buyers able to compete.

Headwinds remain. The report notes the gap between rising input costs and achievable sale prices is the widest on record according to industry survey data, energy costs continue to pressure margins, and skilled trades remain difficult to hire. Manufacturing insolvencies rose in the most recent financial year even as insolvencies across the broader economy fell. United States tariff measures on steel, aluminium and related products create exposure for some exporters, although the substantial majority of Australian manufacturing exports remain unaffected.

The report also includes valuation benchmarks for ten subsegment categories across three size bands, from smaller businesses with under $1 million in EBITDA through to platform-scale operators. Businesses attracting the strongest buyer interest tend to share diversified customers, documented processes, management depth beyond the founder, demonstrated margin resilience and a clearly quantified picture of any export or tariff exposure.

The full 2026 Australian Manufacturing Sector M&A Overview is available at https://morganbusinesssales.com/2026-australian-manufacturing-sector-ma-report/

About Morgan Business Sales

Morgan Business Sales works exclusively with Australian business owners to plan and execute confidential, well-prepared exits, including succession, partial sales and full exits. The firm works with owners across the manufacturing sector, typically those generating A$2 million or more in annual revenue.

Dru Morgan
Morgan Business Sales
+61 1300 577 297
support@morganbusinesssales.com
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