Global aerospace and defense deals insights: Year-end 2018

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.

Executive summary

M&A activity in the global aerospace and defense sector continued to be strong in 2018. The year witnessed the third highest deal value in history, a continuation of a longer-term trend where three of the last four years were the highest. We believe focus by large A&D companies on digital transformation and acquiring small to mid-sized companies will likely drive 2019 deal activity. While factors such as trade disputes, the U.S. government shutdown and Brexit may pose some headwinds, we continue to view prospects as very positive overall for deal making in the upcoming year.

Key trends/highlights

  • While deal value declined this year by about 20% to $57.8 billion, it was 83% higher than the ten-year average. The Q4 2018 value grew significantly to $27.2 billion from $6.1 billion in the previous quarter led by a $16.2 megadeal.
  • Average deal size in Q4 2018 grew considerably to $664.3 million from $165.7 million in Q3 2018. For full year, the average deal size was 73% higher than the ten-year average.
  • As acquirer, Asia and Oceania continued to lead the volume with a 33% share while the value was dominated by North America with a 76% share in 2018.

“While factors such as trade disputes, the U.S. government shutdown and Brexit may pose some headwinds, we continue to view prospects as very positive overall for deal making in the upcoming year.”

Bob Long, US Aerospace and Defense Deals Leader

Contact us

Bob Long

Aerospace and Defense Deals Leader, PwC US

Tel: +1 (703) 918 3025

Scott Thompson

Aerospace and Defense Leader, PwC US

Tel: +1 (703) 918 1976

Follow us