PwC: Global Aerospace & Defense M&As Reached $15B in Q1 2018

A new PwC report says the value of global mergers and acquisitions in the aerospace and defense sector hit $15 billion in the first quarter of fiscal 2018, reflecting a 28 percent increase over the previous quarter and a 19 percent rise from the same period last year.

PwC reported that global A&D companies posted 86 M&A transactions in Q1 2018 with an average deal size of approximately $485 million.

General Dynamics’ (NYSE: GD) approximately $9.7 billion acquisition of CSRA accounted for 64 percent of the total deal value in Q1 2018.

Other notable M&A deals in the sector include Elbit Systems’ $552 million purchase of Israel Military Industries and CSSC Holdings’ acquisition of Shanghai Waigaoqiao Shipbuilding for approximately $960 million.

The analysis attributed 90 percent of the total deal value in Q1 2018 to M&A transactions made by strategic investors and showed that North America accounted for 73 percent of the deal value in the period.

Bob Long, U.S. A&D deals leader at PwC, said strong deal activity in the sector is driven by continued rise in aviation and strong defense trends and financial position amid monetary and fiscal policy changes.

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