2018年-普华永道全球_Global_aerospace_and_defense_deals_insights_Q1_2018_6页_1mb

PwC Deals Summary: Global Aerospace and Defense Q1 2018

Core Content

The first quarter of 2018 saw strong deal activity in the global aerospace and defense (A&D) sector, with a total deal value of $15 billion, a 28% increase compared to the previous quarter and a 19% rise from Q1 2017. Despite a 19% decrease in the number of deals compared to Q1 2017, the average deal size increased significantly by 89% to $485 million, largely due to General Dynamics’ acquisition of CSRA for $9.6 billion.

The sector is characterized by a solid financial position, which supports M&A activity as companies seek to shape portfolios, gain scale, and respond to geopolitical tensions and margin pressures. Strategic investors dominated the deal landscape, accounting for 90% of the deal value and 73% of the volume.

Main Trends and Highlights

• Deal Value and Volume:

  • Q1 2018 total deal value: $15 billion.
  • Q1 2018 total deal volume: 86 deals.
  • Average deal size: $485 million, up 89% from Q4 2017.
  • The sector's deal value was 80% higher than the 10-year historical quarterly average of $8.3 billion.

• Largest Transaction:

  • General Dynamics’ acquisition of CSRA for $9.6 billion was the largest deal of the quarter and accounted for 64% of the total deal value.

• Megadeals:

  • The only megadeal in Q1 2018 was General Dynamics’ acquisition of CSRA.
  • Other notable deals include:
    • Shanghai Waigaoqiao Shipbuilding Co Ltd sold to CSSC Holdings Ltd for $960 million.
    • Elbit Systems acquired Israel Military Industries for $552 million.

Sector Category Analysis

• The Software and Security Systems category accounted for the majority of deal value in the last two quarters.
• Large acquisitions of IT companies, such as CSRA and Gemalto, indicate a trend toward scaling and synergy generation in response to margin pressures.
• Activity in Aircraft & Parts and Arms & Vehicles categories was lower this quarter.

Regional Analysis

• North America:
  • Accounted for 73% of the deal value and 73% of the target value.
  • Deals were primarily driven by domestic transactions.
• Asia and Oceania:
  • Had the highest deal volume, but observed 23% fewer targets and 15% fewer acquirers compared to Q1 2017.
• Global Deal Distribution:
  • 99% of global deal value was exchanged domestically.

Outlook for A&D Deals

• The momentum in deal making from 2017 and Q1 2018 is expected to continue.
• Companies will leverage their strong cash positions to pursue accretive transactions within their core businesses.
• Mid to small deals will dominate, driven by strategic investors.
• Opportunities for mega-deals remain, though uncertainties such as tariffs and trade negotiations may affect the pace.

Key Players and Contact Information

• Bob Long: PwC US Aerospace and Defense Deals leader.
• Scott Thompson: US Aerospace and Defense leader.
• Randy Starr: US Aerospace and Defense Advisory leader.

PwC’s Deals Practice offers comprehensive M&A services tailored to the aerospace and defense industry, including deal identification, due diligence, transaction structuring, and post-deal support. With over 20,000 practitioners globally, they provide experienced teams with local market knowledge to help companies extract peak value within their risk profile.

About the Data

• The data is sourced from Thomson Reuters and includes deals with SIC codes in the 14 A&D industry groups.
• Adjustments were made to exclude non-specific transactions and include relevant ones not captured by SIC codes.
• The analysis covers all individual mergers, acquisitions, and divestitures with disclosed or undisclosed values, leveraged buyouts, and spin-offs, from January 1, 2015, to March 31, 2018.