Industry analysts expect deal activity across the Aerospace and Defence industry to remain strong in 2018, specifically within the Maintenance, Repair and Operations (MRO)/aftermarket space.
Existing MROs, such as StandardAero and AAR, continue to be attracted to the addition of niche capabilities and value-add services in order to advance their growth profile. StandardAero’s acquisitions of Vector Aerospace in November 2017 and PAS Technologies in March 2017, led to its establishment as one of the largest MRO companies in the world.
With Boeing recently announcing a 10-year revenue target of $50 billion from its aftermarket division, much of the focus is also likely be on OEM-led acquisitions.
MRO M&A activity will continue to be quite robust and consistent with the transaction volumes over the past few years,” predicts Jonathan Berger, managing director of New York-based Alton Aviation Consultancy. An MRO-Network Twitter poll from early January reinforces Berger’s prediction, with 86% of respondents believing more OEM-led acquisitions of aftermarket entities will occur this year. Less predictable, however, is pinpointing exactly where some of the industry’s giants will look to do their aftermarket shopping.