SOURCE: PricewaterhouseCoopers LLP
Aerospace & Defence M&A Results Are Record-Breaking, Says PwC
The primary driver of deal value in 2011 was the $16 billion transaction, the largest in sector history. However, volume drivers were broad-based, with higher numbers for small deals (less than $50 million) and mega deals (above $1 billion) alike. A total of six mega deals were completed in 2011, recovering from the recent low of only two such announcements in 2009. This led to an increase in average transaction sizes, even when removing the impact of the $16 million deal. There was also a big increase in deals for aerospace targets in 2011, measured on both a volume and value basis, while the number of defence deals decreased. Aerospace deal multiples also surpassed defence targets, reflecting the more attractive outlook for that part of the sector.