The report below gives a good overview of the second quarter M&A activity in the Aviation, Aerospace and Defense Industry Sector. In Q1 2019 the value of global mergers and acquisitions in the Aerospace and Defense sector was $11.0B and the number of M&A deals was 87 (source: Pitchbook).
In a notable deal, Kellstrom Defense, Inc. acquired Williams Aerospace & Manufacturing, Inc., a Spring Valley, CA military aircraft replacement parts manufacturer, for an undisclosed amount in January. The deal was financed with debt from PNC Mezzanine Capital, Barings, and Blue Torch Capital. Chris Celtruda, CEO of Kellstrom Defense, stated the acquisition supports their growth strategy to rapidly integrate the Williams Aerospace & Manufacturing business, while also investing in products and solutions set for military aircraft sustainment.
- US corporate profits, which affect airline traffic and demand for new commercial aircrafts, rose 7.4% in the fourth quarter of 2018 compared to the same period in 2017.
- US durable goods manufacturers’ shipment of military aircrafts and parts, an indicator of the demand for aerospace products and parts for military use, rose 8.7% in February 2019 compared to the same period in 2018.
- US durable goods manufacturers’ shipment of non-defense aircraft and parts, an indicator of demand for aerospace products and parts, rose 6.8% in February 2019 compared to the same period in 2018.
- US steel and mill products, an indicator of commodity steel costs for aerospace products, rose 10.3% in March 2019 compared to the same month in 2018.
Posted by Daniel Sirvent.