Global aerospace and defense M&A deals insights: 

Q4 2016 update
 

Executive summary

The Global Aerospace and Defense industry closed 2016 with 51 deals with disclosed value greater than $50 million. While both deal volume and value declined compared to last year, there was a 73% increase in deal activity in Q4 2016. This upswing can be an indication of positive momentum in the industry after significant political and economic changes at the end of 2016.

The Aircraft and Parts category continues to drive deal value in the A&D industry, with key deals like Rockwell Collins’s acquisition of B/E Aerospace and Chinese Zhonghang Heibao’s acquisition of Shenyang Aircraft Industry Group.

The Software and Security Systems and Electronic Equipment categories reflect growing interest, as companies seek to address increasing opportunities and threats related to the industry’s technological advances. Additionally, there was a notable presence of transactions in the Asia & Oceania region, as financial investors sought to address the problematic cash position of the shipbuilding industry.

aerospace and defense deal value and volume
aerospace and defense deal value and volume data
aerospace and defense deal disclosed value

Key trends/highlights

  • Total deal volume for deals with disclosed value greater than $50 million regained momentum in Q4 2016. The A&D sector saw $17.1 billion in deals this quarter, up 180% from Q3 2016.
  • Deal value in Q4 was primarily driven by an $8.2 billion acquisition.
  • Q4 2016 deal volume also increased over Q3 2016, up 73% to 19 deals. This is the second consecutive quarter with an increase in volume.
  • With 76% of total volume, strategic investors made up the majority of transaction volume in 2016.
  • The North American region continues to dominate in transaction value, accounting for 57% of total deal value in 2016.
  • The Asia & Oceania region holds a significant stake in deal volume (driven by consolidation in the industry), accounting for 49% of acquisitions volume in 2016.

For our full report and additional information on the Top 10 Deals announced for the year, our regional and subsector analyses, and the Outlook for this sector, please remember to download our:

Global Aerospace and Defense M&A Deals Insights: Q4 2016 update.

Contact us

Bob Long
US Aerospace and Defense Deals Leader
Tel: +1 (703) 918 3025
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Chuck Marx
US Aerospace and Defense Leader
Tel: +1 (602) 820 7801
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Scott Thompson
US Aerospace and Defense Assurance Leader
Tel: +1 (703) 918 1976
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Randy Starr
US Aerospace and Defense Strategy& Leader
Tel: +1 (973) 236 5682
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Dean Gilmore
US Global Aerospace & Defense Leader
Tel: +44 7970 665555
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