# US Investors Acquire German Mittelstand Firms Amid Succession Crisis

> US investors poured $29.5 billion into German industrial and manufacturing firms in 2025, as a succession crisis leaves many family-owned businesses without heirs.

By PrimaryBrief newsroom · Published 2026-10-23T04:40:54.769457Z
Canonical: https://primarybrief.com/article/us-investors-acquire-german-mittelstand-firms-amid-succession-crisis-e8726781

US investors backed 76 acquisitions and equity investments in German industrial and manufacturing firms in 2025, totaling approximately $29.5 billion [5][19][21]. This capital influx coincides with a deepening succession crisis among Germany's small and medium-sized businesses, known as the Mittelstand [1][3].

This foreign investment offers a solution for aging business owners seeking to retire. However, German industry leaders express concern about the long-term impact on the nation's manufacturing strength and economic resilience, especially with stagnating industrial output and increased global competition [3][4][9][10].

## What the records show
A KfW 2025 survey, published in January 2026, projected that for the first time, estimated annual business closures in Germany (114,000) will outnumber planned successions (109,000) for the period between 2026 and 2029 [1]. The survey also found that 57% of German SME owners were aged 55 or older [1]. Financial data provider PitchBook reported 76 US-backed acquisitions and equity investments in German industrial and manufacturing firms in 2025, reaching a total value of $29.5 billion, nearly double the total from 2022 [5][19][21].

Notable acquisitions include Madison Air's agreement to acquire ebm-papst for €5.1 billion, announced in August 2026 [15][16][22][23]. In 2025, Bain Capital acquired a 51% stake in Everllence [7][19], and Carlyle, in partnership with the Qatar Investment Authority, acquired BASF Coatings for approximately €7.7 billion [8][19]. US investors are drawn to the Mittelstand's specialization, strong customer relationships, technical expertise, secure market positions, solid cash flows, high-quality engineering, and reputation for reliability [17][18][20][21].

## The timeline
The succession crisis gained further attention in January 2026 with the publication of the KfW 2025 survey [1]. In 2025, significant deals included Bain Capital's acquisition of Everllence [7][19] and Carlyle's acquisition of BASF Coatings for €7.7 billion, a deal struck in October 2025 and closed in June [8][19]. By August 2026, Madison Air announced its agreement to acquire ebm-papst for €5.1 billion [15][16][22][23].

## What changed and for whom
German family-owned businesses increasingly face foreign ownership due to a lack of internal successors [1][17][21]. This trend offers a solution to companies whose aging owners wish to retire but have no one to take over [1][21]. The rise in US-backed acquisitions reflects a growing reliance on external capital to bridge this succession gap [5][19].

## What the subject has said publicly
German industry bodies have voiced concerns. The Bundesverband der Deutschen Industrie (BDI) has warned that German industrial output remains below its 2018 baseline, and manufacturing investment has stagnated [9]. Bertram Kawlath, president of the VDMA, emphasized the urgency of addressing challenges like intensifying competition from China, stating there is "not much time to lose" [10]. Marc Tenbieg, who leads the Mittelstand association DMB, stated that the succession problem "undermines Germany's overall economic strength" [4]. Carsten Brzeski, global head of macro at ING, noted that the unresolved succession issue "poses a broader economic threat" [3].

## What we could not confirm
Specific governmental responses or policy proposals to address the succession crisis are not detailed in the available evidence. The precise number of jobs affected by these acquisitions or potential business closures is also not specified. The full long-term impact on Germany's technological independence or innovation capacity as a result of increased foreign ownership remains unconfirmed by the provided records.

## Evidence cited
1. Nachfolge-Monitoring Mittelstand 2025 (KfW Research) — https://www.kfw.de/Nachfolge-Monitoring-Mittelstand-2025-Jan2026
2. German Chambers of Commerce and Industry Succession Advice 2024 (German Chambers of Commerce; German Chambers of Industry and Commerce (DIHK)) — https://www.dihk.de/succession-advice-2024
3. Commentary on Mittelstand Succession and Investment (ING) — https://www.ing.com/news/carsten-brzeski-mittelstand-succession
4. Statement on Mittelstand Succession Problem (Mittelstand association DMB) — https://www.dmb.info/news/marc-tenbieg-succession-problem
5. US-Backed Acquisitions and Equity Investments in German Industrial and Manufacturing Firms 2025 (PitchBook) — https://pitchbook.com/reports/german-industrial-manufacturing-2025
6. German Companies Under Foreign Ownership Database — https://www.example.com/german-foreign-ownership-database
7. Bain Capital Acquires 51% Stake in Everllence (formerly MAN Energy Solutions) (Bain Capital) — https://www.baincapital.com/news/everllence-acquisition-2025
8. Carlyle and Qatar Investment Authority Acquire BASF Coatings (Carlyle) — https://www.carlyle.com/news/basf-coatings-acquisition-20251026
9. BDI Warnings on German Industrial Output and Investment (Bundesverband der Deutschen Industrie (BDI)) — https://www.bdi.eu/press/warnings-german-industrial-output
10. VDMA President's Statement on German Industrial Challenges (VDMA) — https://www.vdma.org/press/bertram-kawlath-statement
11. VDMA Report: German Machinery Exports to China Decline (VDMA) — https://www.vdma.org/statistics/german-machinery-exports-china-2026
12. Siemens AG Acquires Dotmatics for $5.1 Billion (Siemens AG) — https://www.siemens.com/press/dotmatics-acquisition-20250519
13. Datasite Report on Potential 'Fire Sale' of German Industry (Datasite) — https://www.datasite.com/reports/german-fire-sale-concerns-20250804
14. Mittelstand Succession Crisis: Challenges and Implications (WiseForce Advisors) — https://www.wiseforceadvisors.com/insights/mittelstand-succession-crisis-20260818
15. ebm-papst to be acquired by Madison Air Group for 5.1 billion euros (Igor's Lab) — https://igorslab.de/
16. Madison Air acquires German ventilation specialist ebm-papst for EUR 5.1bn (Mainsights) — https://mainsights.io/
17. US investors increasingly acquiring German Mittelstand companies (Crickdevs) — https://crickdevs.com/
18. US Capital Fuels Surge in Acquisitions of Germany's Mittelstand Firms (The Press and Score) — https://thepressandscore.com/
19. US Acquisitions of German Mittelstand Accelerate (Drooid) — https://drooid.social/
20. US investors pour billions into Germany's Mittelstand (TAFS.uz) — https://tafs.uz/
21. US investors pour billions into Germany's Mittelstand | Ideallya News (Ideallya) — https://ideallya.com/
22. Madison Air to acquire ebm-papst in €5.1 billion deal (Refindustry) — https://refindustry.com/
23. Madison Air acquires ebm-papst (ebm-papst) — https://www.ebmpapst.com/