Private equity activity in the US industrials sector reached a record level in 2025, driven by strong investor demand for assets linked to data centre expansion, infrastructure resilience and supply-chain security, according to a report by Bloomberg.
Financial sponsors bought and sold at least $75bn of US industrial and infrastructure assets during the year, the highest level on record, according to data from Bloomberg. Buyout firms have been active across carve-outs, platform acquisitions and sponsor-to-sponsor transactions, cementing their role as key dealmakers in the sector.
Notable transactions included Thoma Bravo’s $10.6bn acquisition of Boeing’s Jeppesen navigation business and other digital assets, Lone Star Funds’ $3.8bn purchase of Hillenbrand, and Warburg Pincus and Berkshire Partners’ roughly $3bn takeover of aerospace supplier Triumph Group.
Sponsors were also active sellers, with KKR exiting Kito Crosby to Columbus McKinnon for $2.7bn and Lone Star agreeing to sell SPX Flow to ITT in a $4.8bn cash-and-stock deal.
The surge in dealmaking has been underpinned by growing capital flows into businesses supporting data centre construction, power infrastructure, energy efficiency and logistics, alongside increased focus on reshoring and supply-chain resilience.
Despite prolonged weakness in US manufacturing activity, financial sponsors have continued to deploy capital into niche industrial and infrastructure-adjacent assets offering recurring revenues and long-term growth exposure.
