PwC: Aerospace, Defense M&A Deal Value Hit $24.2B in First Half of 2018

A new PwC report says the value of merger and acquisition deals in the global aerospace and defense industry reached $24.2 billion during the first half of 2018, a figure that reflects a 30 percent rise over the same period last year.

PwC said the number of M&A transactions in the A&D sector dropped by 17 percent to 187 deals in the first half of this year, which remains 4 percent higher than the 10-year deal volume average per year.

The report noted that the sector™s average M&A deal size was $315 million in the first two quarters of 2018, representing a 50 percent increase over the first half of 2017.

PwC said that figure can be attributed to General Dynamics™ (NYSE: GD) $9.7 billion acquisition of CSRA and the and the agreement Boeing (NYSE: BA) unveiled in May to buy aviation parts and services provider KLX for approximately $4.2 billion, including $1 billion in net debt.

œWe believe the factors impacting commercial aerospace and defense, as well as the industry™s liquidity position, bode well for continued strength in deal making, said Bob Long, U.S. aerospace and defense deals leader at PwC.

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