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2014 Year in Review
35 36
39
43
37
29
31
28
40
28
32
29
Q4
2014
Q3
2014
Q2
2014
Q1
2014
Q4
2013
Q3
2013
Q2
2013
Q1
2013
Q4
2012
Q3
2012
Q2
2012
Q1
2012
2014 ADG M&A Overview
Source: InfoBase; Capital IQ as of 12/31/14
Quarterly Aerospace Transaction Activity
TMG recorded 30 announced Defense and Government Services
transactions and 35 announced Aerospace transactions during Q4.
During 2014, TMG recorded 130 transactions in the Defense and
Government Services sectors, a modest increase from 2013. However,
the return of public company buyers has improved the overall M&A
market, driving competition and improving valuations. In 2014, large
transactions – those greater than $200 million – accounted for a far
greater number of transactions than in 2013. The SI Org, now
rebranded as Vencore, acquired QinetiQ N.A.’s services division;
Raytheon acquired Blackbird Technologies, and BAE Systems acquired
SilverSky to name a few. In the greater than $1.0 billion category,
AECOM acquired URS, Cobham acquired Aeroflex, and Engility will
acquire TASC. Q4 2014 activity was down compared to prior years,
which could indicate that Q1 2015 may see increased activity as a
result of spillover from deals that were not completed prior to year-end.
North American based aerospace acquisition activity increased by 22%
from 125 announced transactions in 2013 to 153 in 2014. Growth was
fueled by PE backed purchases which expanded nearly 50%, and
represented 31% of all transaction activity, up from 26% in 2013.
Acquisitions by public companies grew by 24% while private buyer
activity remained at 2013 levels. Reported multiples in 2014 remained
steady with average reported EV/EBITDA and EV/Revenue multiples of
10.0x and 2.2x, respectively. Of the transactions with reported
enterprise valuations, 17 were in excess of $100.0 million, three of
which were in excess of $1.0 billion. Valance Surface Technologies
(Trive Capital) was the most active buyer with five acquisitions, while
AMETEK, Lockheed Martin, Precision Castparts, and Zodiac
Aerospace each made three acquisitions. TMG tracked 32 announced
divestitures in 2014, or 21% of all transactions, which was consistent
with 2013 levels.
Defense and Government Services Transaction Activity
42
48
28
35
46
45
29
33
43
52
32
32
51
74
35
30
2011
2012
2013
2014
Q1 Q2 Q3 Q4
182
219
124
130