US Investors Acquire Record Number of German Companies

US investors have been actively acquiring and investing in German industrial and manufacturing companies, with a notable increase in recent years.

Last year saw a record number of such transactions, totaling 76 acquisitions and investments valued at approximately $29.5 billion, according to financial data provider PitchBook. This figure is nearly double the total for 2022 and represents a significant trend in international business dealings. The value of these deals has been substantial, with many German companies changing hands.

The interest from US investors in German companies remains strong, with many seeing them as attractive assets due to their specialized expertise, strong customer relationships, and advanced technical capabilities. These characteristics have enabled many German businesses to establish a solid position in their respective niches over several decades.

Many of the German companies being acquired or invested in are traditional family-owned businesses that have been operating for generations. As the owners of these companies approach retirement age, they often face challenges in finding suitable successors within the family. This has created an opportunity for US investors to acquire well-established and successful German enterprises.

As a result, many industry observers expect the trend of US investors acquiring German companies to continue, driven by the unique strengths and advantages that these businesses possess.

The trend of US investors acquiring German companies shows no signs of slowing down, driven by the unique strengths and advantages that these businesses possess. One reason for this is that companies not previously on the market are now becoming available for sale.

This year has seen several notable takeovers, including the acquisition of ebm-papst, a Mulfingen-based manufacturer of electric motors and fans, by US company Madison Air in August for $5.4 billion. Another significant deal was the sale of Everllence to Bain Capital, with the US investment firm acquiring a 51% stake in the company.

According to Die Deutsche Wirtschaft, no country owns more German firms than the United States. In fact, out of the total 7,861 companies identified in their database "German Companies Under Foreign Ownership," 1,750 are currently held by US investors. This figure highlights the significant interest that US investors have in acquiring German companies.

PricewaterhouseCoopers has also underscored this trend, noting that while the number of acquisitions and equity investments has not increased, the financial volume of these deals has jumped significantly.

The trend of US investors acquiring German companies is gaining momentum, as evidenced by the recent purchase of BASF Coatings for approximately €7.7 billion by Carlyle and Qatar Investment Authority.

This acquisition was finalized on June 30 of this year, after being announced in October 2025, marking a significant transaction in the German market. The deal is part of a larger trend where US investors are increasingly looking to Germany as an attractive destination for investment.

According to a recent survey by the American Chamber of Commerce in Germany, nearly two-thirds of US companies operating in the country expect business conditions to improve over the next three to four years. This optimism is reflected in the fact that 52% of these companies plan to expand their operations in Germany, up from 49% in the previous year.

However, a closer look at investment flows reveals an interesting discrepancy. Despite the increase in US acquisitions and equity investments, significantly less capital flowed from the US to Germany last year compared to the previous year, according to the Bundesbank.

Foreign direct investment in Germany as a whole has increased, rising from €57.4 billion in 2024 to €86.1 billion in 2025. However, the amount of investment from the US during this period was notably lower, totaling €11.8 billion and representing a decline of nearly 44% compared to the previous year.

Investment from the UK has seen a significant surge, reaching around €26 billion during this period.

Relatively low valuations of German companies are also making them more attractive to international buyers, according to Albrecht-Mahmood, who points out that compared to US companies, many German SMEs are valued more moderately. This disparity in valuation is likely a contributing factor to the continued interest from foreign investors in Germany's Mittelstand businesses.