What We’re Reading

Content Summary

In this January 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.

Top 10 MRO Market Predictions for 2020

“1 | M&A: Hot, Hot, Hot. Mergers and acquisitions will continue to be hot from all sides, including OEMs and other non-MROs buying, as well as private equity buying and selling. However, expect few large acquisitions because the easy pickings are gone, and valuations of any remaining sizable acquisition targets are high.”

Aviation Week

The Top 10 Air Taxi Stories of 2019

“The past year was marked by incredible progress for the budding air taxi sector, capping off a decade of more rapid advancement toward on-demand electric air mobility than most observers thought possible. Here are the top 10 most-viewed air taxi stories published by Avionics International this year.”

Aviation Today

Recent Defense M&A Reveals Shift in Industry, National Security Strategy

“The Trump administration considers ‘long-term strategic competition with China’ to be one of the greatest challenges facing our military. As federal budgets experience increasing pressure from entitlement spending and debt service in the coming years, partnering with government contractors and commercial companies to develop cost-effective defense innovation will be key to countering this threat.”

Defense News

2020 Has Plenty to Expect. Here's What We're Watching.

“Whether 2020 is the last year of one decade or the first year of the next, it is sure to be a year of more fundamental change in the market.”

Washington Technology

Perspective on Public Marketsa,b,1

Stock Price Performance – Last Twelve Months

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Most Significant Stock Price Movement – November 30th to December 31st

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Recent M&A Transactions2

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a. Current stock prices in USD as of 12/31/19

b. Aircraft OEMs: BA, BBD.B, EADS, ERJ

         Aerospace Supply Chain & Aftermarket Support: AIR, ARNC, ATRO, B, DCO, HEI, HRX, HXL, KAMN, MAL, MGGT, MOG.A, ROLL,
         SAF, SIG, 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, KTOS, LHX, MRCY, TDY, ULE

         Government Services: BAH, CACI, LDOS, MANT, SAIC, VEC

         Diversified Services: ACM, BAB, FLR, GIB, ICFI, J, KBR, SRP

 

1. CapitalIQ

2. Mergermarket

 

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