M&A analysis

2015 was another strong year for the aerospace market with 102 deals recorded across the industry. Deal value reached its highest ever level thanks to two huge transactions – Berkshire Hathaway’s €32.3bn acquisition of Precision Castparts, and Lockheed Martin’s €8.1bn purchase of helicopter manufacturer Sikorsky from United Technologies.

Strong deal volumes have also continued into 2016, driven by both continued demand in the civil market, and a notable pick-up in defence expenditure in response to increasing global security concerns.

Against this backdrop, companies are having to move fast to keep pace with OEMs. The industry is seeing continued consolidation of its supply chain, with the components sector in particular seeing significant cross-border activity. As both corporates and private investors look to bolster their strategic assets we expect plenty more M&A activity in the months to come.

As our table below shows, the leasing sector saw two huge deals with the acquisition of two major Irish companies, Avolon Holdings and AWAS Aviation Capital. The components sector has also seen significant activity with some notable cross-border deals, particularly involving US buyers. The M&A landscape remains dominated by countries with the largest aerospace investment programmes, namely the US, the UK, France and Germany.

Global aerospace deals 2015-16

Date Target Target Country Segment Bidder Bidder Country Enterprise Value €m EBITDA Multiple
2016 Avolon Holdings Ltd Ireland Leasing Bohai Leasing Co Ltd China 5,711 14.4x
2015 AWAS Aviation Capital Ltd Ireland Leasing Macquarie AirFinance Ireland 3,096 n.a
2015 Nordic Aviation Capital AS Norway Aircraft EQT Partners Sweden 2,518 13.8x
2015 Landmark Aviation LLC UK MRO BBA Aviation plc UK 1,590 18.0x
2015 Airbus SA's defence electronics business France Components Kohlberg Kravis Roberts USA 1,021 n.a
2015 Fokker Technologies Group B.V. Netherlands Components GKN plc UK 597 9.3x
2015 Nordisk Aviation Products, A/S Norway Components TransDigm Group Inc USA 560 n.a
2016 Patria Oyj (49% stake) Finland Prime Contractor Kongsberg Gruppen ASA Norway 507 9.0x
2015 Alvest SAS France Equipment Sagard Private Equity Partners France 214 n.a
2016 TCR International NV Netherlands Leasing 3i Infrastructure UK 186 n.a
2015 Shimtech Industries UK Components Liberty Hall Capital Partners USA 170 n.a
2015 Cobham plc advanced composites businesses UK Components Meggitt plc UK 154 n.a
2016 Mecadaq SA France Components Activa Capital France 82 n.a
2016 Sigma Composites Ltd UK Components Silverwing Capital Partners UK 77 n.a