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

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

By Daniel Sirvent

September 16, 2019

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 2019 included 13 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector closed in June when Consolidated Precision Products Corp, a portfolio company of Warburg Pincus LLC, acquired Pacific Cast Technologies, Inc. from ATI Ladish LLC, ultimately owned by Allegheny Technologies, for an undisclosed amount. The acquisition complements Consolidated Precision Products Corp’s aerospace and industrial focused portfolio. Pacific Cast Technologies engages in the production of titanium investment castings used by aerospace and defense OEMs.

Industry Indicators

  • US corporate profits, which affect airline traffic and demand for new commercial aircraft, rose 3.1% in the first quarter of 2019 compared to the same period in 2018.
  • US durable goods manufacturers’ shipments of military aircraft and parts, an indicator of demand for aerospace products and parts for military use, rose 5.5% year-to-date in June 2019 compared to the same period in 2018.
  • US durable goods manufacturers’ shipments of nondefense aircraft and parts, an indicator of demand for aerospace products and parts, fell 10.0% year-to-date in June 2019 compared to the same period in 2018.
  • US steel mill product prices, an indicator of commodity steel costs for aerospace products, fell 7.5% in July 2019 compared to the same month in 2018.

Posted by Daniel Sirvent.

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