The report below gives a good overview of the fourth quarter M&A activity in the Aviation, Aerospace and Defense Industry Sector. M&A activity for North American based target companies in the Retail and Consumer sector for Q3 2017 included 18 closed deals, according to data published by industry data tracker FactSet.
Private equity has been active in defense of late as evidenced by Odyssey Investment Partners LLC acquiring CPI International LLC, a portfolio company of Veritas Capital Fund Management LLC, for a reported value of US$800 million. The acquisition enhances the growth strategies of CPI International. CPI International manufactures and designs satellite communications. Its defense applications include radar, electronic warfare and communications end markets.
- US corporate profits, which affect airline traffic and demand for new commercial aircraft, rose 7.0% in the second quarter of 2017 compared to the same period in 2016.
- US durable goods manufacturers’ shipments of nondefense aircraft and parts, an indicator of demand for aerospace products and parts, fell 3.8% year-to-date in September 2017 compared to the same period in 2016.
- US durable goods manufacturers’ shipments of military aircraft and parts, an indicator of demand for aerospace products and parts for military use, rose 1.5% year-to-date in September 2017 compared to the same period in 2016.
Posted by Joe Contaldo.