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Analysis

US divestitures update: Q1 2025

US divestiture activity continued its 12-month decline in Q1 2025, driven by heightened geopolitical tensions and a challenging macroeconomic backdrop, with technology and industrial sectors remaining bright spots.

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Industrial trends

Our quarterly report focuses on:

  • US divestiture volume, value, and reported multiples.
  • US divestitures by buyer type.
  • US divestitures by industry.
  • Cross-border divestitures activity.

US divestitures update: Q1 2025
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Transaction Trends1

  • Transaction volume
    US divestiture transaction volume declined to the lowest level since Q3 2023 with only 433 deals in Q1 2025. Continued macroeconomic headwinds, including elevated interest rates and geopolitical uncertainty, are creating a more challenging divestiture environment characterized by heightened conservatism.
  • Transaction size
    In Q1 2025, US transactions with deal values above $1 billion accounted for 42.9% of the total disclosed deal volumes compared to 30.8% of the deals in Q4 2024. These larger divestitures can be integral to comprehensive restructuring initiatives, designed to sharpen focus on core competencies.
  • Acquiror type
    Interest from private equity buyers and foreign strategics crept up year over year in Q1 2025, making up a cumulative 52.0% of all divestitures, compared to 46.5% in Q1 2024. This trend underscores the continued and growing attractiveness of US assets to global investors and private equity firms.
  • Industry focus
    High technology and industrials remained areas of focus for divestitures for all of 2024 and Q1 2025, making up 19.2% and 14.8% of Q1 2025 divestitures, respectively. Energy and power replaced health care for the third-highest concentration, comprising 14.1% of all transactions.

Regional trends2
  • Europe
    Divestitures deal activity among European acquirors remained constant in Q1 2025, with participation in 38 deals.
  • Americas
    Divestiture activity in the Americas decreased by 16.6% in Q1 2025 compared to Q4 2024. The Americas completed 358 transactions in Q1 2025 compared to 429 transactions in Q4 2024.
  • Asia
    Divestiture activity in Asia decreased by 33.3% quarter over quarter in Q1 2025 compared to Q4 2024. Asian acquirors closed 12 deals in Q1 2025 compared to 18 in Q4 2024.

 

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Previous editions:

Learn more about the trends from 2021-2024 by downloading the following reports

 

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References

1 Refinitiv data as of March 25, 2025.

2 Ibid.

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