Aerospace supply-chain mergers and acquisitions are accelerating as Boeing and Airbus give buyers a clearer view of jet production schedules, Reuters reported from Seattle. Janes Capital Partners counted 154 publicly disclosed commercial aerospace transactions through August, near the 2019 annual record of 159, as dealmakers price future demand with greater confidence and suppliers with scarce capacity draw stronger interest.
The improving production outlook has narrowed the uncertainty that previously weighed on valuations during years of pandemic disruption and manufacturing setbacks. Boeing has stabilised 737 MAX output and is working to raise production, while Airbus and Boeing have given more visibility on build-rate plans, making it easier for buyers to underwrite revenue at targets tied to higher jet output.
Bankers and suppliers expect more sellers to come to market after a busy summer of transactions. The 154 deals tracked through August were worth $14 billion, compared with 157 deals worth $37.5 billion in all of last year, and recent activity has focused on companies with specialised manufacturing, tight labour markets and capacity that can support higher aircraft production.