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|