US Investors Increasingly Acquiring Germany's Famed Mittelstand Companies
US investors are increasingly targeting Germany's traditional industrial and family-owned businesses (Mittelstand), acquiring more companies as owners struggle to find successors.
A growing amount of US capital is flowing into Germany's traditional industrial firms and family-owned businesses. As many business owners face challenges in finding successors, more companies are becoming prime acquisition targets. This trend makes Germany's specialized firms, known for strong technical expertise in niche markets, particularly attractive to international investors.
Highlights
- US investors were involved in 76 acquisitions and investments in German industrial and manufacturing companies in 2025.
- These transactions were valued at approximately $29.5 billion (€26.3 billion) in 2025, nearly double the 2022 total.
- As of August 2026, the figure stood at $23.9 billion.
- Out of 7,861 companies identified in the database of German firms under foreign ownership, 1,750 are currently held by US investors.
- Many German business owners are struggling to find successors, leading more companies to be put up for sale.
Details
According to an analysis by financial data provider PitchBook, US investors participated in 76 acquisitions and investments in German industrial and manufacturing companies in 2025. The total value of these transactions reached approximately $29.5 billion (€26.3 billion), almost doubling the 2022 total. By August 2026, this figure had already reached $23.9 billion. Samar-Ahmad Albrecht-Mahmood of Veracity Capital Investments notes that interest from US investors in German companies remains strong.
German companies, especially those in the industrial and manufacturing sectors, are attractive due to their high specialization, robust customer relationships, and strong technical know-how. Additionally, many German business owners are reaching retirement age and often lack successors within their families, bringing companies to market that might not have been available for sale a few years ago. Notable takeovers this year include the acquisition of ebm-papst, a manufacturer of electric motors and fans, by US company Madison Air for $5.4 billion, and the sale of Everllence (formerly MAN Energy Solutions) to Bain Capital.
Why it matters
The increasing interest of US investors in German Mittelstand companies signals a significant transformation for the German economy. While this provides new capital and growth opportunities for German businesses, it also leads to a rise in foreign ownership within the country's industrial structure. Relatively low company valuations also play a role, making German firms attractive to US buyers. This trend could reshape the future of Germany's traditional industrial strength.