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7
2014 Year in Review
2014 Aerospace M&A Trends
Source: InfoBase; Capital IQ as of 12/31/13
Acquisition Activity by Buyer Type
Buyer
Target
EV
Coast Plating
NA
Chrome Plus International
NA
Coastline Metal Finishing
NA
Dynamic Paint Solutions
NA
Pride Plating
NA
Blue Streak Finishers
NA
Sungear, Inc.
NA
Crown Precision Machining
NA
Furth Rixson
$2,900.0M
SOS Metals, Inc.
NA
Trans World Alloys Company
NA
Aerospace Dynamics Intl.
$625.0M
Teseq Group
$91.8M
Amptek
NA
VTI Instruments
$74.0M
Pacific Precision Products
NA
Greenpoint Technologies
NA
Enviro Systems
NA
Downstream Roll-up / Consolidation of Niche Capabilities
Both Strategic and Financial buyers invested in significant consolidation
opportunities throughout 2014, most notably marked by a downstream focus.
Trive Capital was the most active, rolling up six aerospace metal finishing
companies under newly formed Valence Surface Technologies. Riverside
Capital’s H-D Manufacturing acquired well-known gear specialist, Sungear as
well as Crown Precision Machining. Zodiac made three acquisitions, growing
capabilities in aircraft interior systems. AMETEK also made three acquisitions,
advancing positions in precision testing equipment. Precision Castparts’
appetite for acquisitions carried through into 2014 with three acquisitions in
machining, metal products distribution and metal waste treatment. Finally light-
weight metal giant, Alcoa acquired Furth Rixson in a $2.9 billion transaction
that positions Alcoa as the global leader in seamless rolled jet engine rings.
Spotlight on Continued Growth of Private Equity Presence
PE Groups continued to expand their Aerospace positions in 2014, comprising
nearly a third of all acquisitions and representing only 17% of sellers. A strong
commercial aircraft backlog, growing global air traffic forecasts as well as
expanding demand and advances in the space and satellite sectors continued
to attract PE buyers despite high valuation multiples. In addition to the notable
2014 roll-up efforts by Riverside and Trive Capital, several other firms began
building or expanding aerospace positions. Arlington Capital’s MB Aerospace
acquired Norbert Industries in Q2, adding engine expertise to its portfolio. RFE
Investment partners acquired PCX Aerostructures from SPX Corp in Q2 and
followed it quickly with the acquisition of Cam-Tech Manufacturing in Q4.
Additionally, Veritas acquired EMCORE’s Space Photovoltaics business and
Warburg Pincus acquired Wencor Group from Odyssey Investment Partners.
Notable Roll-up / Consolidation Activity
26%
31%
44%
44%
30%
24%
0% 20% 40% 60% 80% 100%
2013
2014
PE Public Private