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The report below gives a good overview of the fourth quarter M&A activity in the Aviation, Aerospace and Defense Industry Sector. M&A activity for North American based target companies in the Aerospace and Defense sector for Q3 2019 included 13 closed deals, according to data published by industry data tracker FactSet.
One of the notable middle market transactions in the sector was announced in July when Kellstrom Defense Aerospace, Inc., a subsidiary of Kellstrom Defense, Inc., ultimately owned by The Merex Group, acquired Tavco, Inc. for an undisclosed amount. The transaction would enhance Kellstrom Defense Aerospace’s customer service capabilities. Tavco manufactures and distributes defense aircrafts. The company is headquartered in Chatsworth, CA.
- US corporate profits, which affect airline traffic and demand for new commercial aircraft, rose 2.7% in the second quarter of 2019 compared to the same period in 2018.
- US durable goods manufacturers’ shipments of military aircraft and parts, an indicator of demand for aerospace products and parts for military use, rose 1.1% year-to-date in September 2019 compared to the same period in 2018.
- US durable goods manufacturers’ shipments of nondefense aircraft and parts, an indicator of demand for aerospace products and parts, fell 16.8% year-to-date in September 2019 compared to the same period in 2018.
- US steel mill product prices, an indicator of commodity steel costs for aerospace products, fell 13.1% in October 2019 compared to the same month in 2018.
Posted by Daniel Sirvent.