mynth
← DATABASE
01/2021

MTS TEST & SIMULATION acquired by ITW

UNITED STATES Industrial Equipment / Special Machinery / Instrumentation & Measurement EV $500M–1.5bn

Context

Illinois Tool Works (ITW) has finalized the acquisition of the MTS Test & Simulation business from Amphenol Corporation. The strategic rationale for this transaction centers on a "segment-alignment" play, merging the target's world-class mechanical simulation expertise with ITW’s existing Test & Measurement and Electronics segment, which includes the well-established Instron brand. This fusion effectively creates a specialized powerhouse in the global testing arena, providing the group with unparalleled hardware to serve attractive industry verticals such as aerospace and heavy-duty automotive development. This operation allows Amphenol to execute a surgical structural transformation following its broader acquisition of the MTS Systems parent group. By divesting the capital-intensive Test & Simulation division, the seller can now concentrate its R&D and capital exclusively on the high-margin MTS Sensors business. The maneuver optimizes the financial profiles of both parties, sharpening ITW’s focus on customer-focused testing solutions while ensuring Amphenol remains an agile market leader in the electronics revolution. Ultimately, the partnership solidifies ITW’s standing as a primary provider of mission-critical validation innovation, bridging the gap between sophisticated structure-scale simulation and industrialized instrumentation standards.

MTS TEST & SIMULATION, which reported an EBITDA margin of [members only] in 2020, is valued in this transaction at an EV/EBITDA multiple of 10x–18x, representing a premium to the average currently observed in the Industry & Manufacturing sector (11.7x).

-> Deep-dive in Industry & Manufacturing market trends

Target

MTS Test & Simulation operates as a premier technology organization dedicated to the engineering and manufacturing of high-performance mechanical testing systems and simulation hardware. The entity’s business model is centered on a proprietary framework of hardware and software solutions that simulate real-world physical forces on materials, components, and full-scale structures. Its value proposition is anchored in technical operational depth, providing critical data for product development in the automotive, aerospace, and civil engineering sectors. Strategically, the firm focuses on high-precision motion control and durability testing, ensuring that manufacturers can validate structural integrity under extreme conditions. By maintaining a specialized focus on large-scale simulation and specialized laboratory services, the organization ensures a mission-critical role in the structural safety of global transport and infrastructure.

Ent. Value

$500M–1.5bn

Equity Value

[members only]

Multiples

EV / Revenue

1x–3x

EV / EBITDA

10x–18x

EV / EBIT

[members only]

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2020
$250–500M
$50–100M
[members only]
2019
$250–500M
$50–100M
[members only]

Similar deals in Industrial Equipment

Similar deals in Industrial Equipment

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
02/2021SULZERNORDIC WATERSWEDENValves, Pumps & Taps
02/2021BC PARTNERSIMA GROUPITALYRobotics & Automation
01/2021OAKTREE CAPITAL MANAGEMENTCOL GROUPITALYElectrical Equipment
12/2020ANTARES VISION GROUPAPPLIED VISION CORP.UNITED STATESInstrumentation & Measurement
11/2020INTERPUMP GROUPDZ TRASMISSIONIITALYComponents
10/2020THE CARLYLE GROUPFLENDERGERMANYSpecial Machinery
10/2020MARELTREIF MASCHINENBAUGERMANYFood & Beverage Lines
08/2020CELLINKSCIENIONGERMANYLab & Scientific Equipment
08/2020HLDMICROWAVE VISION (MVG)FRANCEInstrumentation & Measurement
06/2020THE CARLYLE GROUPENVEAFRANCEInstrumentation & Measurement

REFERENCES

Valuation range: EV $500M–1.5bn

Revenue range: $250–500M

EBITDA range: $50–100M

EV/Revenue range: 1x - 3x

EV/EBITDA range: 10x - 18x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of MTS TEST & SIMULATION by ITW are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Acquirer: itw