Mary-Louise Hoffman
The gap between the market values of commercial aerospace and defense and government services companies narrowed during 2015’s second quarter, according to a Bluestone Capital Partners report.
The investment banking firm said it found the number of government services transactions rose 28 percent year-to-date and an improvement in public company valuations helped drive initial public offerings in the defense and government sector.
Some companies have made bolt-on acquisition deals in Q2 to grow their cybersecurity and ISR market footprints, including ManTech International‘s purchase of Knowledge Consulting Group and CACI International‘s buy of LTC Engineering, the report states.
The report pointed to commercial aircraft maintenance, repair and overhaul services as an area of interest for some private equity firms last quarter.
Bluestone forecasts that United Technology Corp.‘s potential sale of its Sikorsky helicopter manufacturing business will trigger an industry shift to “transformational” M&A deals.
