Aerospace, Defense & Space M&A Update: Winter 2024
Published January 17, 2024
2023 experienced 400+ Aerospace, Defense & Space M&A transactions, down ~7% from 2022 levels.
A few key themes to watch in 2024 based on recent market activity:
- Increased investor interest in highly-engineered components and systems including hi-reliability, motion control, avionics, sensors, and other electronic systems
- Continued consolidation in the aero-engine market, a few notable recent transactions include Arlington Capital’s formation of Kinetic Engine Systems, Barnes Group’s acquisition of MB Aerospace, and the merger of Whitcraft Group and Paradigm Precision to form Pursuit Aerospace
- Defense market remains active for M&A supported by strong defense budget, inventory replenishment, and ongoing geopolitical tensions
- Recent 737 MAX-9 grounding has commercial suppliers anxious to learn more about potential supply chain impacts
- Ongoing commercial recovery and build-rate increases creating NWC and CAPEX needs are expected to drive demand for outside investment and/or encourage consolidation across the supply chain
Aerospace, Defense & Space M&A Transaction Volume
Select 2H-23 Transactions
| Deal Date | Acquirer/Investor | Target | Target Description |
|---|---|---|---|
| Dec-23 | AAR (NYS: AIR) | Triumph Group (Product Support Business) | Provider of maintenance, repair and overhaul of structures-related services. |
| Dec-23 | The Jordan Company, Warburg Pincus | iNRCORE | Manufacturer of catalog and magnetic components intended to serve military, medical, transportation, aerospace and other industries. |
| Nov-23 | Tikehau Capital Advisors | Secan | Manufacturer of heat exchangers and cooling steam systems for the aviation, aerospace and automotive industries. |
| Nov-23 | Arcfield, Veritas Capital | Orion Space Solutions | Developer and manufacturer of small satellites and sensor payloads. |
| Nov-23 | Safran Group (PAR: SAF) | Microtecnica | Provider of highly engineered innovative flight critical products for the aerospace and defense industries globally. |
| Nov-23 | Arcline | Hartzell Aviation | Manufactures proprietary aircraft subsystems and aftermarket components intended for the aviation industry. |
| Nov-23 | GenNx360 Capital Partners | Precision Aviation Group | Manufacturer of aircraft parts and maintenance, repair and overhaul services for rotary and fixed-wing aircraft. |
| Nov-23 | TransDigm Group | CPI International (Electron Device Business) | Manufacturer of electronic components and subsystems primarily serving the aerospace and defense market. |
| Nov-23 | Charger Investment Partners | The Unitech Group | Manufacturer of composite, metallic and engineering structures intended for aerospace, defense and naval industries. |
| Nov-23 | Cherry Bay Capital Group | Houston Precision Fasteners | Manufacturer of fasteners and components intended to serve customers in the aerospace and defense sector. |
| Oct-23 | Bain Capital, Ergo Partners, ITP Aero | BP Aerospace | Provider of aircraft engine aftermarket services intended to serve airlines, engine overhaul shops, leasing companies, and parts traders. |
| Oct-23 | MA Group, Three Hills Capital Partners | CFN Precision | Developer and manufacturer of small to medium-sized precision metal, plastic and composite parts intended to serve the aerospace sector. |
| Oct-23 | CNH Industrial | Hemisphere GNSS | Provider of satellite positioning services and positioning equipment intended to facilitate aviation navigation and global coverage. |
| Oct-23 | Bodycote | Lake City Heat Treating | Provider of heat treating services catering to the aerospace and orthopedic industries. |
| Oct-23 | Kratos Defense & Security Solutions | Sierra Technical Services | Provider of aerospace engineering and manufacturing services catering to the aerospace and defense sector. |
| Sep-23 | Aciturri Aeronautica | GOAM Industrie | Manufactures aviation and aerospace parts and provides stelling and machining of aeronautical turbine blades for the aviation industry. |
| Sep-23 | General Atomics | EO Vista | Manufacturer of airborne and space-borne electro-optical systems catering to the aerospace and defense industry. |
| Sep-23 | Mubea | Cyclone Manufacturing | Manufacturer of aerospace structural components. |
| Sep-23 | Anduril | Blue Force Technologies | Manufacturer of aerospace and defense design intended to offer a full range of advanced design, analysis, simulation, and manufacturing capabilities. |
| Sep-23 | Abrams Capital Management, Loar Group | CAV Systems | Developer of ice protection and drag reduction technology intended to serve the aviation sector. |
| Aug-23 | Barnes Group | MB Aerospace Holdings | Manufacturer of critical engine components for aerospace and defense markets. |
| Aug-23 | RBC Bearings | Specline | Manufacturer of precision bearings intended for the commercial and defense aerospace markets. |
| Aug-23 | BAE Systems | Ball Aerospace & Technologies | Manufacturer of space-based instruments and sensors, tactical electro-optical solutions, antennas, microwave systems and aerospace components. |
| Aug-23 | Israel Aerospace Industries | Intracom Defense Electronics | Manufacturer of electronic and communication products, systems and applications. |
| Aug-23 | HEICO | Wencor Group | Manufacturer of aircraft parts and highly-engineered aftermarket replacement components. |
| Jul-23 | L3 Harris Technologies | Aerojet Rocketdyne Holdings | Manufactures driving and launch systems for defense and space applications, weapons, and weapons systems for tactical missions. |
| Jul-23 | Safran Group | Collins Aerospace (Flight Control and Actuation Business) | Manufacturer of flight controls, high-lift systems, nacelle and stabilizer actuators intended for commercial and business aviation aircraft. |
| Jul-23 | Thales Group | Cobham Aerospace Communications | Manufacturer of radio management, antennas, lights and clocks for commercial aerospace, defense and security sectors. |
Meridian Capital
Aerospace, Defense & Space Team Contacts: Brian Murphy, bmurphy@meridianib.com | Aaron Franzheim, afranzheim@meridianib.com
Meridian Capital's Aerospace, Defense & Space Transaction Experience
*Note: Includes transactions completed by Meridian bankers while at previous firms
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