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M&A Quartely News In The Aviation, Aerospace and Defense Industry Sector

By Daniel Sirvent | Sep 20, 2018

The report below gives a good overview of the third quarter M&A activity in the Aviation, Aerospace and Defense Industry Sector. M&A activity for North American based target companies in the Aerospace and Defense sector for Q2 2018 included 11 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in May when Valiant Integrated Services, LLC acquired Cubic Global Defense, Inc. and Omega Training Group, Inc. from Cubic Corp for $138 Million in cash and contingent payout. Under the terms of transaction, Valiant Integrated Services paid $135 Million in cash and will make additional earnout payments of $3 Million based on certain performance conditions related to the award of certain government contracts over the next 12 to 24 months. The transaction allows Valiant Integrated Services to further expand its business operations. Cubic Global Defense engages in the manufacturing of tactical training and simulation systems while Omega Training Group provides training, testing, analysis, logistics and staffing services for the military industry.

Industry Update

  • US corporate profits, which affect airline traffic and demand for new commercial aircraft, rose 4.3% in the first quarter of 2018 compared to the same period in 2017.
  • US durable goods manufacturers’ shipments of military aircraft and parts, an indicator of demand for aerospace products and parts for military use, rose 2.0% year-to-date in June 2018 compared to the same period in 2017.
  • US durable goods manufacturers’ shipments of nondefense aircraft and parts, an indicator of demand for aerospace products and parts, rose 2.6% year-to-date in June 2018 compared to the same period in 2017.
  • US steel mill product prices, an indicator of commodity steel costs for aerospace products, rose 12.4% in July 2018 compared to the same month in 2017.

Posted by Daniel Sirvent.

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


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