Aerospace, Defense & Space M&A Activity Update: Summer 2024
Published July 10, 2024
Recent M&A Trends in Aerospace, Defense & Space
Aerospace, Defense & Space M&A activity was up ~8% over the second half of 2023 with 210 total transactions announced
A Few Key Trends:
- Continued strong investor interest through the first half of the year in the MRO/Aftermarket and Electronics/Engineered Systems sectors.
- Strategic investors have been active in M&A as an opportunity to reshape portfolios and acquire proprietary technologies including multiple transactions from both TransDigm and Thales as well as transactions by several other publicly traded strategics.
- Multiple private equity-backed assets transacting with several others in market as PE firms seek to capitalize on the strength of the AD&S market; recent transactions include Blue Sea’s sale of Sunvair to Greenbriar and Honeywell’s acquisition of CAES from Advent.
- Meridian expects the AD&S M&A market to remain active as companies look to strengthen the supply chain and/or vertically integrate new capabilities while PE investors can benefit from the culmination of industry tailwinds including the demand for commercial air travel, strength of the defense budget, and growth in the space market.
Aerospace, Defense & Space M&A Transaction Volume
Select 2024-H1 Transactions
Communications
| Date | Company | Acquiror | Description |
|---|---|---|---|
| Jun-24 | PAR Government (Aerospace and Defense) | Booz Allen Hamilton (NYS: BAH) | The company offers tactical assault programs, team awareness kit integrated systems engineering, and operational support to the global information networks. |
| May-24 | Fenix Group | Nokia (HEL: NOKIA) | Provider of system-integrated infrastructure services by providing battlefield intelligence at the edge. |
| May-24 | Get SAT | Thales Group (PAR: HO) | Developer of micronized satellite terminals designed to provide satellite communication for ground, air, and maritime applications. |
| Apr-24 | Triad RF Systems | Comrod Communication | Manufacturer of RF, microwave amplifiers and integrated radio systems for challenging environments. |
| Mar-24 | BOWEN | Exens Solutions | Manufacturer of high-tech electronic equipment for industrial systems. |
Electronics / Engineered Systems
| Date | Company | Acquiror | Description |
|---|---|---|---|
| Jun-24 | CAES | Honeywell (NAS: HON) | Manufacturer of advanced electronics including antennas, missile flight instrumentation, precision positioning systems, RF assemblies and subsystems, RF microwaves and components. |
| Jun-24 | Micro-Precision Technologies | Great River Capital | Manufacturer of hybrid integrated circuits and modules catering to the military, aviation, industrial, medical and commercial applications. |
| Jun-24 | CPI International (Electron Device Business) | TransDigm Group (NYS: TDG) | Manufacturer of electronic components and subsystems primarily serving the aerospace and defense market. |
| May-24 | Raptor Scientific | TransDigm Group (NYS: TDG) | Manufacturer of engineering, testing, and measurement products intended for aerospace, defense, space, marine, and other markets. |
| Apr-24 | Cobham Aerospace Communications | Thales Group (PAR: HO) | Manufacturer of radio management, antennas, lights and clocks for commercial aerospace, defense and security sectors. |
| Mar-24 | PLX | Edgewater Capital Partners | Manufacturer of advanced optical technologies for military, aerospace, scientific, industrial and commercial industrial applications. |
| Mar-24 | Mission Microwave | J.F. Lehman & Company | Manufacturer of the solid-state power amplifier and block up-converter products intended to support ground-based, airborne, and space-based applications. |
| Feb-24 | Charles E. Gillman | Behrman Capital | Provider of high-reliability electrical cables and harnesses intended for military ground vehicles and other ruggedized applications. |
| Feb-24 | Flex Force Enterprises | High Point Aerotechnologies, Highlander Partners | Manufacturer and provider of stabilization products and technologies intended for law enforcement agencies, military organizations, and private security companies globally. |
| Feb-24 | Space & Mission Systems | BAE Systems (LON: BA.) | Manufacturer of aerospace systems including space-based instruments and sensors, tactical electro-optical solutions, antennas, microwave systems, and aerospace components. |
| Jan-24 | KeTech Defence | Sun Capital Partners | Manufacturer of alarm and detection systems intended to serve the defense sector. |
| Jan-24 | Vian Enterprises | Crane (NYS: CR) | Designer and manufacturer of multi-stage lubrication pumps and lubrication system components technology for critical aerospace and defense applications. |
Finishing / Surface Treatment
| Date | Company | Acquiror | Description |
|---|---|---|---|
| Mar-24 | Aqua Blasting | Battle Investment Group, Metal Finishing Technologies | The company offers shot peening, glass bead peening, wet abrasive peening, dry abrasive peening, soda blasting, tumbling, and surface finish testing. |
| Jan-24 | FGP Systems | Rcapital Partners | The company provides heat treatment, surface coating, assembly, inspection, and an array of automated machine solutions and product control services. |
| Jan-24 | Lake City Heat Treating | Bodycote (LON: BOY) | The company offers vacuum heat treating, cryogenic and tempering services for stainless steels, cobalt and nickel alloys and vacuum heat treatable steels as well as hot isostatic pressing services. |
MRO / Aftermarket
| Date | Company | Acquiror | Description |
|---|---|---|---|
| Jun-24 | Aerospace Products International | AeroMed Group | Distributor of aviation parts and equipment including paint, chemicals, and consumables. |
| Jun-24 | Aerodyne Corporation | Corbel Capital Partners, Sky Aviation Holdings | The company offers cylinder repair, aircraft inspections, and engine overhauls for jet engines. |
| May-24 | Sunvair Aerospace Group | Greenbriar Equity Group | Provider of landing gear overhaul services intended for commercial, regional and military aircraft. |
| May-24 | HYDRO Systems (Aerospace and Defense) | Rhinestahl | Manufacturer and supplier of ground support equipment and maintenance tooling for aircraft or engines catering to the aviation industry. |
| May-24 | Aviocraft | Salt River Aviation, Weinberg Capital Group | Provider of maintenance, repair, and overhaul services catering to the aviation industry. |
| May-24 | GT Engine Services | Greenbriar Equity Group, STS Aviation Group | Provider of jet engine care and maintenance services catering to airlines, aviation companies and aircraft leasing firms. |
| Apr-24 | Turbine Controls | VSE (Aerospace and Defense) (NAS: VSEC) | Provider of aftermarket maintenance, repair and overhaul support services catering to complex aircraft engine components of commercial and military applications. |
| Apr-24 | Segers Aerospace Corporation | H.I.G. Capital | Provider of MRO services intended for mission-critical military platforms. |
| Apr-24 | Alpha Aircraft Services | Ventura Air Services | Provider of maintenance services for aircraft |
| Mar-24 | Mid-Continent Aviation Services | AE Industrial Partners, Yingling Aviation | Provider of maintenance, repair, and overhaul services to business and general aviation. |
| Mar-24 | Triumph Group (Product Support Business) | AAR (NYS: AIR) | Provider of maintenance, repair and overhaul of structures-related services. |
| Feb-24 | AOG Accessories | Aero Accessories, ATL Partners | Provider of aircraft repair services for galley equipment and interior parts. |
| Feb-24 | Britt Metal Processing | Jets MRO | The company offers in-house engineered APU component repair and maintenance services. |
| Feb-24 | Arista Aviation Services | BrightWater Partners, United Aero Group | Specializes in the rebuild, upgrade and recertification of helicopter airframes and avionics. |
| Feb-24 | BP Aerospace | Bain Capital, Ergo Partners, ITP Aero | Provider of aircraft engine aftermarket services intended to serve airlines, engine overhaul shops, leasing companies, and parts traders. |
| Jan-24 | Arrow Aviation Services | Arcline, Hartzell Aviation | Distributor of aircraft spare parts, lubricants, and ground support equipment. |
Precision Components
| Date | Company | Acquiror | Description |
|---|---|---|---|
| Jun-24 | Sesco Industries | Hillside Custom, Symmetrical Investment Group | Manufacturer of socket set screws, aerospace parts, custom fasteners, commercial fasteners, machine screws, and other related products. |
| Jun-24 | RTI Advanced Forming | Accrofab | Manufacturer of titanium products intended for the aerospace and defense industries. |
| May-24 | Llamas Plastics | Lee Aerospace, Inc. | Manufacturer of aircraft parts, components, and equipment serving to defense sector. |
| Apr-24 | Trinity Aerospace | Johnson Precision Products | Manufacturer of aviation and aerospace components intended to serve the aerospace industries. |
| Apr-24 | Cablenet Aerospace | Tide Rock | Provider of contract manufacturing services for aerospace, aircraft, military, and medical sectors. |
| Mar-24 | ERW | Akoya Capital | Provider of sheet metal fabrication and machined products intended for industrial gas turbine, aerospace, and mass transit industries. |
| Feb-24 | Radial Bearing | AFM Capital Partners | Manufacturer and designer of rod ends and spherical bearings intended for industrial and aerospace applications. |
| Jan-24 | Merrill Technologies Group | Arlington Capital Partners, Keel Holdings | Manufactures products from complex fabrications and precision machining of components for aviation, defense, heavy equipment, energy, robotics and machine tool industries. |
| Jan-24 | AeroCision | AlpInvest Partners, Arlington Capital Partners, Verus Aerospace | Manufacturer of engine components and assemblies intended for the aerospace industry. |
Professional Services
| Date | Company | Acquiror | Description |
|---|---|---|---|
| May-24 | M1 Support Services | Cerberus Capital Management | The company offers logistics, information technology, training services, supply chain management, acquisition, and facilities and equipment maintenance services. |
| Apr-24 | Special Aerospace Services | Godspeed Capital | The company provides strategic advisory and business capture,tactical engineering, systems development, precision manufacturing, and recurring program support. |
| Mar-24 | Flight Crews Unlimited | Reliance Aerotech Services | Operator of an aviation staffing company intended to serve aviation professionals. |
| Mar-24 | ManTech International (Technical Advisory Programs) | Arlington Capital Partners | Provider of defense, intelligence and technical advisory service programs. |
| Mar-24 | Synectic Research and Analysis | Avion Solutions | Provider of aerospace engineering services intended to serve the missile defense agency, national air and space intelligence center, and space and missile defense command. |
| Feb-24 | Incora | Allianz Group | Provider of distribution and supply chain management services intended for engine and airframe manufacturers and companies. |
| Feb-24 | Global Training Aviation | Indra Sistemas | Provider of aviation training services intended to deliver innovative training and resourcing to aeronautical professionals. |
| Feb-24 | SeaTec Consulting | Oliver Wyman | Provider of engineering, digital and consulting services intended for aerospace, defense and transportation sectors. |
UAV
| Date | Company | Acquiror | Description |
|---|---|---|---|
| Apr-24 | Aerovel | Airbus Helicopters | Developer of an unmanned aerial system designed to offer reliable long-range imaging. |
| Apr-24 | Ascent AeroSystems | Robinson Helicopter Company | Developer of compact and rugged drones designed for defense, public safety, and industrial markets. |
Meridian Capital
Aerospace, Defense & Space Team Contacts: Aaron Franzheim, afranzheim@meridianib.com | Brian Murphy, bmurphy@meridianib.com
Meridian Capital's Aerospace, Defense & Space Transaction Experience
*Note: Includes transactions completed by Meridian bankers while at previous firms
