Why US investors are snapping up Germany's famed Mittelstand

U.S. investors have acquired several prominent German industrial and manufacturing companies in recent years, including Birkenstock, Viessmann, Linde, and Ebm-Papst. According to an analysis by financial data provider PitchBook, U.S.-linked acquisitions and investments in German industry and manufacturing firms totaled approximately $29.5 billion in 2025, nearly double the amount recorded in 2022. By August 19, 2026, the cumulative value reached $23.9 billion. Samar-Ahmad Albrecht-Mahmood of Veracity Capital Investments noted that U.S. investors continue to show strong interest in German companies, particularly those in the industrial and manufacturing sectors. These firms are described as highly specialized, with strong customer relationships and advanced technical expertise. Many German entrepreneurs are aging, leading to a greater willingness to sell their businesses due to the lack of family successors. Ebm-Papst, a Mulfingen-based manufacturer of electric motors and fans, was acquired by U.S. company Madison Air for $5.4 billion in August. Earlier in the year, the Augsburg-based company Everllence, previously known as MAN Energy Solutions, was sold to U.S. investment firm Bain Capital, which acquired a 51 percent stake in the company. According to Die Deutsche Wirtschaft, a business information network focused on Germany’s medium-sized and family-owned enterprises, the United States holds the largest number of German firms among foreign investors. Of the 7,861 companies identified in the database “German Companies Under Foreign Ownership,” 1,750 are currently owned by U.S. investors. PricewaterhouseCoopers (PwC) highlighted growing U.S. investor interest in acquiring German companies in its report titled Destination Germany. While the number of acquisitions and equity investments has not increased, the financial volume of such deals has risen significantly. One notable example is the acquisition of BASF Coatings by U.S. investment firm Carlyle, in partnership with the Qatar Investment Authority (QIA), for around €7.7 billion. This deal was finalized on June 30, following an agreement made on October 26, 2025. A recent survey by the American Chamber of Commerce in Germany indicated that 62 percent of U.S. companies operating in the country expect improved business conditions in the next three to four years. Approximately 52 percent of these firms plan to expand their activities in Germany, a slight increase from 49 percent in 2024. Despite the rise in U.S. acquisitions and investments in German companies, this trend appears to contrast with the decline in U.S. direct investment flows to Germany in 2025, according to the Bundesbank. Less investment capital flowed from the U.S. to Germany in 2025 compared to the previous year, although overall foreign direct investment in Germany rose from €57.4 billion in 2024.