The biggest aerospace company takeovers in 2015
The global aerospace market continued to grow in 2015 buoyed by strong growth in the commercial sector neatly offsetting lower defence sales. Aerospace-technology.com lists the biggest aerospace takeovers completed in 2015 based on deal value.
Lockheed Martin / Sikorsky Aircraft - $9bn
Military and commercial aircraft manufacturer Sikorsky Aircraft was acquired in November by American aerospace and defence company Lockheed Martin for US $9bn making it a part of Lockheed Martin's Mission Systems & Training (MST) business unit. The merger agreement between Sikorsky Aircraft's former owner UTC and Lockheed Martin was signed in July.
The takeover allows Lockheed Martin to expand its core business into the production and sustainment of helicopters.
Harris / Exelis - $4.75bn
Exelis was taken over by Harris Corporation, an international communications and information technology services provider, in a $4.75bn cash-and-stock deal in May. The transaction will provide Exelis shareholders with $16.625 in cash and 0.1025 of a share of Harris common stock. Harris shareholders have an 85% stake in the combined company, while the remaining 15% is owned by Exelis shareholders.
Exelis provides defence, aerospace and information solutions, which, when complemented with Harris' technology-based solutions to mission critical challenges of government and commercial customers, will strengthen core franchises and provide new opportunities for innovation. The acquisition will also result in an approximately $8bn in combined pro forma revenue.
GE Capital Aviation Services / Milestone Aviation Group - $1.77bn
GE's aircraft leasing unit GE Capital Aviation Services (GECAS) acquired helicopter leasing company Milestone Aviation Group for $1.77bn in January, following a merger agreement signed in October 2014. The acquisition is pursuant to GE Capital's strategic plan of expanding services in core areas aligned with GE's industrial business.
As of September 2015 Milestone has a fleet of 191 helicopters and ordered 154 firm and option aircraft. Its helicopters are used in search-and-rescue, offshore oil and gas, emergency medical services, mining, and police surveillance.
Qatar Airways / IAG - $1.73bn
Qatar Airways acquired a 9.99% ownership in British airline holding company International Consolidated Airlines Group (IAG) for $1.73bn in January. It also has an option to further acquire additional stakes not exceeding 9.99% in future.
With the acquisition, Qatar Airways aims to enhance operations, strengthen its membership in IAG's Oneworld Alliance as well as expand existing commercial ties, initiated through code share pacts with IAG.
IAG / Aer Lingus - $1.5bn (€1.35bn)
In September, Ireland's national airline Aer Lingus was acquired by IAG for $1.5bn (€1.35bn), following the European Commission's approval in July.
The addition of Aer Linus allows IAG to expand its services through Dublin. IAG provides services such as air transport for passengers and cargo, landside cargo handling and airport ground handling. Aer Lingus has a fleet of 50 aircraft and serves approximately 11 million passengers a year.
Alcoa / RTI International - $1.5bn
Alcoa, a lightweight metals technology firm based in the US, acquired RTI International Metals for $1.5bn in July, under the terms of a merger agreement signed in March. Integrated under Alcoa's downstream Engineered Products and Solutions (EPS) division, RTI International Metals is now known as Alcoa Titanium & Engineered Products (ATEP).
ATEP provides titanium and specialty metal products and services for the aerospace, defence, medical device and energy markets. The acquisition will strengthen Alcoa's aerospace market and titanium operations.
SAIC / Scitor Holdings - $790m
Science Applications International Corporation (SAIC), a technology integrator based in the US, took over national security provider Scitor Holdings for $790m in cash in May. The takeover followed a merger agreement signed between Scitor's former owner Leonard Green & Partners and SAIC in March.
Scitor provides critical mission support to customers in the US Department of Defense, intelligence community, and other government agencies. The acquisition of Scitor enables SAIC to provide increased services to its defence and intelligence customers.
GKN / Fokker Technologies - $780m
Arle Capital's Fokker Technologies was acquired by GKN Aerospace for €706m ($780m) in October. The acquisition, first announced in July, will is expected to expand GKN Aerospace's technological offerings and extend original equipment manufacturer (OEM) relationships.
GKN Aerospace is a tier-one designer and manufacturer of composite and metallic assemblies for aerostructures and engine products. Dutch aerospace company Fokker Technologies designs, develops and produces landing gear, aero structures and wiring systems.
TransDigm Group / Telair International - $725m
AAR CORP's Telair Cargo Group of businesses were taken over by TransDigm Group, a designer, producer and supplier of aircraft components based in the US, for approximately $725m in cash in March, a month after the agreement was signed. The deal was financed by TransDigm through its existing cash on hand and $75m borrowing through its existing revolving credit facility.
The Telair Cargo Group, through its three operating units Telair International, Telair US and Nordisk Aviation Products, supplies cargo handling, restraint systems and unit load devices for both commercial and military markets.
Precision Castparts / Noranco - $560m
Precision Castparts Corp, a manufacturer of metal components and products, took over Noranco from MidOcean Partners and PSP Investments, for $560m in October. Noranco, which supplies complex machine components and assemblies to the aerospace and defence sector, was previously acquired by private equity fund investor MidOcean and its co-investors in April 2013.
With the addition of Noranco, Precision Castparts aims to expand its aerostructure, landing gear, aero-engine applications.