GCG’s Q1 2019 Aerospace & Defense M&A Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples and the state of the overall middle-market M&A environment.
Key findings include the following:
- Q1 2019 saw strong gains in the Aerospace & Defense (“A&D”) industry and the broader U.S. equity market as the market sentiment reversed course from a negative and volatile Q4 in 2018. Aircraft/Engine OEMs set the pace for the industry, gaining 143.6% in the 3-year period. However, recent developments in the two fatal crashes involving Boeing’s (NYSE: BA) 737 MAX have led to declines among related companies.
- There were 66 transactions within the A&D industry involving United States based targets or acquirers. 86% of Q1 transactions involved strategic acquirers with the remaining 14% representing platform acquisitions by financial buyers. Acquisitions by strategic buyers who are already backed by private equity firms blur the line between the two categories and represent a meaningful driver to industry activity.
- Categorically, approximately 64% of transactions took place in the Aerospace industry, vs. 17% in the Defense IT/Services, 15% in Defense, and 5% in Space. Representative transactions are further highlighted in the report.
Click here for the full update.