3 / 36
3
As of 12/31/2016
3
Year in Review
2016
M&A Activity Summary
Source: Public Filings, Industry Newswires, S&P Capital IQ
Defense and Government Services Transaction Activity
35
31
32
33
43
42
32
27
37
30
34
45
130
135
156
2014
2015
2016
Q1 Q2 Q3 Q4
Aerospace Transaction Activity
45
40
31
40
52
29
36
33
35
35
36
42
156
161
137
2014
2015
2016
Q1 Q2 Q3 Q4
The McLean Group tracked 45 announced Defense and Government
Services transactions and 42 announced Aerospace transactions
during Q4 2016.
During 2016, 156 transactions were announced in the Defense and
Government Services sectors, an increase from 135 transactions in
2015. Growth in transaction activity was the result of increased
activity across all buyer groups. Public company buyer activity was
flat, accounting for 40% of transaction volume. Transactions
involving private buyers increased to just over 30% from 26% in
2016. Like 2015, there was a number of mega deals (transactions
greater than $1.0 billion), including Leidos Holdings’ acquisition of
Lockheed Martin’s Information Systems & Global Solutions business
for $4.6 billion.
Aerospace activity was down year-over-year with 137 announced
transactions in 2016, compared to 161 in 2015. While private buyer
activity fueled transactions in 2015, the year-over-year decline in
2016 private buyer activity caused a slowdown in 2016 transaction
activity. Among the largest deals for 2016 was Rockwell Collins’ $8.3
billion acquisition of B/E Aerospace, representing an implied
EV/EBITDA multiple of 13.6x.
M&A Activity Summary