What We're Reading
In this August edition of our Aerospace, Defense & Government Services industry update, we review recent articles and developments impacting our target end markets. We also provide perspective on recent trends within the public markets as well as the M&A markets.
Electrification Will Take Different Forms Across Aviation Sectors
“Will aviation be electrified? The answer among industry executives is an overwhelming “yes,” but in different ways, on different time frames, in different markets. As the technologies for electric propulsion advance, it is becoming clear one size will not fit all—and that may be a good thing.”
Fast Defense Acquisition Trend, OTAs, See Old Concerns Reemerge
“One of the hottest new trends in defense contracting is actually decades old. Congressional and industrial concern about Washington’s latest, favorite acquisition tool—other transaction agreements (OTA)—could be reemerging even as demand for speedier and more innovative aerospace and defense capabilities takes off.”
The Race To Launch From U.S. Soil Heats Up
“On Friday morning, NASA will show off four of its veteran astronauts at an event at Johnson Space Center in Houston: two U.S. Air Force colonels, one U.S. Marine colonel, and one U.S. Navy captain. They all have advanced science and engineering degrees. They’ve been working for NASA since 2000 or earlier. They’ve flown to the International Space Station. And, NASA will declare proudly, they’re ready to go back to space.”
Lawrence Prior Says We're In A Summer Lull, Then ‘The Game’s On’ For Government Contracting M&A
“There’s a summer lull,” said Lawrence Prior of M&A in government contracting. “It feels a little quiet but I think under the surface there’s a lot going on. You’re going to see another wave of consolidation.”
Recent M&A Transactions2
a. Current stock prices in USD as of 8/31/18
b. Aircraft OEMs: BA, BBD.B, EADS, ERJ
Aerospace Supply Chain & Aftermarket Support: AIR, ARNC, ATRO, B, BBA, DCO, ESL, HEI, HRX, HXL, KAMN, MAL, MGGT, MOG.A, ROLL, SAF, SNR, SPR, TDG, TGI, WAIR, WWD
Diversified Industrial: AME, CR, CW, ETN, GE, HON, PH, RR, TXT, UTX
Defense Prime Contractors: BA, BAE, EADS, GD, HO, HII, LMT, NOC, RTN
Defense Technologies: AVAV, CHG, CMTL, COB, CUB, ESLT, FLIR, HRS, KTOS, LLL, MRCY, TDY, ULE
Government Services: BAH, CACI, EGL, KEYW, LDOS, MANT, SAIC, VEC
Diversified Services: ACM, BAB, FLR, GIB, ICFI, JEC, KBR, SRP
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