Aerospace Deal-Making Surges as Jet Production Accelerates

The aerospace industry is experiencing a surge in deal-making activity as companies prepare for increased demand and production of commercial jets.

Data from Janes Capital Partners shows that there were 154 publicly disclosed commercial aerospace transactions through August, just shy of the annual record of 159 set in 2019. The combined value of these deals was $14 billion, compared to $37.5 billion in all of last year.

Major manufacturers such as GE Aerospace and Parker Hannifin are acquiring suppliers with scarce workers, specialized manufacturing capabilities, and capacity to meet rising jet output. GE Aerospace recently purchased castings supplier Consolidated Precision Products for $12 billion, while Parker Hannifin acquired Circor's aerospace division from private equity firm KKR for $2.6 billion.

The increased deal activity is attributed to Boeing and Airbus stabilizing their production schedules, giving buyers more confidence in long-term demand. Boeing delivered 600 jets last year, the most since 2018, and is on track to surpass that figure this year. Airbus aims to deliver 870 jets this year, exceeding its pre-pandemic record.