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‒ Aerospace M&A is currently fueled by several
positive factors, including growing passenger
traffic, global economic expansion, and a record
commercial aircraft backlog.
‒ The Aerospace M&A landscape has witnessed a
number of large deals during the first three
quarters of 2018 including the recently
approved purchase of Rockwell Collins by UTC
for $30 billion and Boeing’s $4.2 billion
acquisition of KLX Inc.
‒ Transdigm’s recently announced acquisition of
Esterline for $4.0 billion represents further
large-scale consolidation in the sector.
‒ While larger deals capture the headlines, there
is strong buyer interest in components,
subsystems, MRO, logistics and aerostructures.
‒ Aside from regulatory mandated divestitures,
we expect strategic buyers to continue portfolio
shaping activities that will provide additional
acquisition opportunities.
‒ Overall, Aerospace deal activity remained brisk
in the third quarter of 2018 with 38 closed
deals, up 15% over the third quarter of 2017.
‒ Potential market headwinds due to uncertainty
from US elections (i.e., mid-terms and 2020
presidential), higher oil prices, and increasing
interest rates have not had an impact on deal
flow.
‒ The McLean Group continues to see strong
interest for Aerospace companies from strategic
and financial buyers.
We expect the deal
environment to remain active into 2019 with
quality companies garnering attractive
valuations.
Aerospace M&A Transactions
M&A Activity Summary
4
AEROSPACE TRANSACTION ACTIVITY
Public Companies
Acquired By
Acquired By
32
35
33 33 32
35
38
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Q3 2018 TMG Deals
Acquired By
Acquired By
Private Equity
Acquired By
Acquired By