Worldwide defense and aerospace companies completed mergers
and acquisitions (M&A) deals worth more than $40 billion
in 2006, reports "Defense
Mergers & Acquisitions" in its year-end review.
The year saw a total of 370 transactions completed. M&A
activity in 2006 was exceptionally broad based.
The top five deals accounted for only 32% of the total value
for the year. For comparison, in the record year of 1999 the
top five deals accounted for 77% of the year's $65 billion in
According to Stuart McCutchan, editor of the DM&A newsletter,
the deal activity reached a level not seen since 1999's all-time
high. Defense spending remains at historic highs, and the commercial
aerospace marketplace is at full stride. Industry players are
flush with cash, and private equity money is pouring into the
marketplace. McCutchan expects 2007 to continue this trend.
"we could see the 1999 record finally eclipsed. Deals worth
$25 billion have already been announced or completed -- by far
the fastest start we've seen this decade." Said McCutchan.
A monthly newsletter and online service which has covered M&A
activity in the defense, aerospace and government contracting
markets since 1989.