Aerospace Deal Making Heats Up as Consolidation Kicks In
Confidence in civil order backlogs and a desire for a strong supply chain are driving mergers and acquisitions.
Firm order backlogs for airliners such as the Airbus A320 have cemented confidence that aerospace suppliers' earnings will be bolstered by high build rates in the coming years and this is spurring mergers and acquisitions activity in the sector, according to financial experts. [Photo: Airbus]
Firm order backlogs for airliners such as the Airbus A320 have cemented confidence that aerospace suppliers' earnings will be bolstered by high build rates in the coming years and this is spurring mergers and acquisitions activity in the sector, according to financial experts. [Photo: Airbus]

The mergers and acquisitions (M&A) tide is still rising in the commercial aerospace sector, according to Michael Richter, managing director and head of aerospace and defense with investment bank Lazard. As he prepared for a busy week at this year’s Farnborough International airshow, Richter told AIN that he sees deal-making activity rates higher than they were at the time of the 2012 Farnborough show and also ahead of last year’s Paris Air Show. In his view, the civil aircraft manufacturing sector remains markedly more dynamic than a still somewhat uncertain defense sector.