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Mission control: First quarter 2013 aerospace & defense industry mergers and acquisitions analysis
April 2013
At a glance
Aerospace and Defense sector merger and acquisition (M&A) volume the first quarter of 2013 continued to be impacted by US sequestration and related defense budget uncertainty. Deal value declined to an annual rate of $6 billion, compared to the 10-year average of $20 billion.
Welcome to Mission Control, a quarterly analysis of merger and acquisition activity in the global aerospace and defense sector that provides an overview of the most recent M&A results and our expectations for future deal activity.
Highlights from this quarter's analysis:
Volume of M&A in the A&D sector continued to be dampened by US sequestration and related defense budget uncertainty
10 deals worth more than $10 million, at a total value of $1.4 billion, occurred during the period. Deal value during the quarter represents an annual rate of less than $6 billion; the 10-year average is about $20 billion.
Strategic investors led A&D transactions during the first quarter. Financial investors were involved in only 20 percent of transactions during the period
The United States led acquisitions activity, with seven deals worth $50 million or more.
While aerospace continues to dominate the market, accounting for eight deals worth $50 million or more, the strongest pace since 2000, total deal value in the sector — $900 million — represented the slowest pace since 2009.