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Archive for the ‘Aviation/Aerospace’ Category

Aviation Industry M&A News

By Joe Contaldo | Jun 11, 2015

Jet EngineAs manufacturing continues to gain steam across North America, M&A activity in the aviation industry space is expected to remain strong as larger companies look to gain capabilities and accelerate growth. In addition, mega deals in the cyber security space remain a topic of conversation as the aforementioned Raytheon acquisition of Websense and Bain Capital’s acquisition of Blue Coat Systems foretell the importance of staving off cybercrime.

According to data from rom the Interindustry Economic Research Fund (IERF), revenue for US aerospace manufacturing is forecast to grow at an annual compounded rate of 5 percent between 2015 and 2019.

Aerospace has been a major factor behind increased manufacturing activity in the United States. The global aerospace industry is increasingly opting to situate manufacturing operations in the US instead of low-cost rivals such as China and Mexico, according to new data from ICF International reported by Reuters. Between 2000 and 2012, aerospace manufacturing investments were strongest in China, Mexico, India, and Brazil. Since 2012, more investment has been returning to the US amid rising wages in the developing world. Robotic automation has helped manufacturers in developed countries become more competitive with low-cost producers. Boeing has moved more production in-house as it has reduced outsourcing of work on its 787 Dreamliner. Airbus’s decision to build a plant in Mobile, Alabama, is also attracting aerospace supplier investment to the region.

Aircraft makers based in China and Japan are taking on longtime incumbents Embraer and Bombardier in the regional jet market. Mitsubishi Aircraft expects to begin test flights of a 76 to 88-seat regional jet in the second quarter of 2015, with deliveries beginning in 2017. The company has set the goal of attaining 50 percent of the global market for regional jets over the next 20 years, according to The Wall Street Journal.

Posted by Joe Contaldo.

Read the Entire Aviation, Aerospace & Defense M&A 2nd Quarter Newsletter Here


Aviation, Aerospace and Defense Industry News

By Joe Contaldo | Mar 27, 2015

Jet PlaneAmong aviation, aerospace and defense companies in 2014 divestitures and spin-offs were strong, in part, due to the desire to exit businesses directly impacted by sequestration. There was also strong transaction activity in the fragmented and high-margin maintenance, repair, and overhaul (MRO) business supported by rising passenger traffic and higher utilization rates in growing regions.

According to First Research, an industry research organization, Aircraft makers based in China and Japan are taking on longtime incumbents Embraer and Bombardier in the regional jet market. Mitsubishi Aircraft expects to begin test flights of a 76 to 88-seat regional jet in the second quarter of 2015, with deliveries beginning in 2017. The company has set the goal of attaining 50 percent of the global market for regional jets over the next 20 years, according to The Wall Street Journal. Commercial Aircraft Corporation of China (COMAC) is also readying a new regional jet; the company recently took new orders for a 75- to 90-seat aircraft that is expected to be certified by 2015. COMAC hopes to capture booming demand for regional jets in China, a market that Embraer recently forecast will account for 16 percent of the global market for 70 to 130-seat jets by 2033.

Posted by Joe Contaldo.

Read the Entire Aviation, Aerospace & Defense M&A 1st Quarter Newsletter Here


M&A News for the Aviation Industry

By Joe Contaldo | Dec 12, 2014

Private JetAccording to First Research, global shipments of general aviation aircraft, a demand indicator for aircraft parts, increased 4.8% in the first half of 2014 compared to the same period in 2013, according to the General Aviation Manufacturers Association (GAMA). Business jets saw the largest jump in demand as shipments increased by 12.4%. Makers of aircraft parts serving the general aviation market may want to focus marketing and production resources on business jets and piston aircraft, which are experience strong demand.

In addition, Aerospace companies are increasingly following the lead of many automakers and choosing to situate new US facilities in the southern part of the country, according to Stateline, the news service of the Pew Charitable Trusts. Companies that have recently established facilities in the South or announced plans to do so include Airbus (Alabama), Boeing (South Carolina), GE Aviation (North Carolina), and Gulfstream (Georgia).

Read the Entire Aviation, Aerospace & Defense M&A 4th Quarter Newsletter Here


Q3 Aviation, Aerospace & Defense M&A Industry Report

By Kim Levin | Oct 03, 2014

Nose WheelM&A activity in the North American Aerospace and Defense sector for Q2 2014 included 29 closed deals according to data provided by S&P Capital IQ. Total deal value soared to $443 million, while average deal value reached $44 million. High deal value is largely attributed to several mega deals, the largest being The SI Organization’s $215 million acquisition of QinetiQ North America. Three additional deals, valued at more than $60 million added to the high deal value of the quarter.

Aerospace M&A remains robust with volume expected to match the record high set in 2013. However, deal making on the defense side has not been as strong.

Read the Entire Aviation, Aerospace & Defense M&A 3rd Quarter Newsletter Here


Q2 Aviation, Aerospace & Defense Mergers & Acquisitions Update

By Kim Levin | May 09, 2014

Jet EngineM&A activity in the Aerospace and Defense sector increased for North American based target companies in Q1 2014 according to data provided by S&P Capital IQ. This activity in the period follows a lackluster 2013, which was driven in part by the Federal government’s sequestration. Overall, valuations have held steady, which could support a strong aerospace deal market for the remainder 2014. This, in addition to the availability of cash with attractive terms, provides strategic and private equity buyers with numerous opportunities to recapitalize balance sheets and pursue liquidity events.

Read the Entire Aviation, Aerospace & Defense M&A 2nd Quarter Newsletter Here


Aviation, Aerospace and Defense Q1 M&A Update

By Kim Levin | Feb 21, 2014

Fighter JetM&A activity in the North American Aerospace and Defense sector for Q4 2013 through Jan. 23, 2014 included 48 deals announced or closed according to data provided by S&P Capital IQ. In recent years, M&A activity in the Aerospace and Defense sector has lagged amid uncertain government spending, which has kept sellers on the sidelines and buyers on the lookout for alternative places to invest their money. However, according to a report from the global consulting firm Deloitte, shrinking defense budgets and an uptick in commercial aircraft orders has led to consolidation in supply chains for both sectors, which should continue through 2014.

Read the Entire Aviation, Aerospace and Defense 1st Quarter Newsletter Here


Aviation, Aerospace & Defense M&A Activity Update

By Kim Levin | Dec 13, 2013

Nose WheelM&A activity in the North American Aerospace and Defense (A&D) industry for Q3 2013 was slow with only 19 deals under $1 billion announced or closed. The quarter’s largest disclosed deal was Directional Aviation Capital’s $190 million purchase of Bombardier Aerospace Corporation. The A&D industry is becoming more global due to heightened competition, growing travel demands, and increased security requirements in emerging markets.

Read the Entire Aviation, Aerospace & Defense 4th Quarter Newsletter Here


Aviation, Aerospace & Defense M&A Activity Update

By Kim Levin | Sep 20, 2013

Fighter JetAccording to a study from industry research group First Research, the global aerospace manufacturing industry generates more than $700 billion annually with North America and Europe generating the bulk of sales. The U.S. aerospace products and parts manufacturing industry includes about 1,300 companies with combined annual revenue of about $185 billion. More than 400 aerospace products and parts companies operate in Canada and generate annual revenue of about $20 billion.

 

Read the Entire Aviation, Aerospace & Defense 3rd Quarter Newsletter Here