United Technologies Corp. is in talks with Rockwell Collins about a potential deal valued at more than $20 billion to acquire the industry heavyweight with expectations of closing the deal within a week. With the consolidation of two key aerospace and defense suppliers, the deal could lead to a wave of mergers and acquisitions (“M&A”) activity amongst other first-tier competitors.
On Monday night, President Trump announced the U.S. will be sending additional troops and aircraft to Afghanistan. The revised strategy could include as many as 3,900 additional troops that will be deployed “down to a tactical level” to better support the Afghan military.
Based on a new report by the General Aviation Manufacturers Association (“GAMA”), shipments of general aviation airplanes totaled $9 billion during the first six months of 2017, representing a 3.4% decrease year-over-year (“YoY”). However, Original Equipment Manufacturers (“OEMs”) supplied a total of 995 business jets, piston aircraft, and turboprops during this period, representing a 2.7% increase YoY.
United Technologies Corp. is in takeover talks with Rockwell Collins, Inc. in what would be one of the largest aerospace deals in history. In April, Rockwell Collins significantly increased in size as it closed a $6.4 billion acquisition of B/E Aerospace, which is expected to bring $3 billion in additional annual revenue to Rockwell’s existing $5.3 billion in sales.
BAE System, Bombardier, and Huntington Ingalls all reported 2Q17 earnings this past week with strong results. BAE reported earnings higher than consensus expectations with earnings per share (“EPS”) and revenue up ~17% and ~10% year-over-year (“YoY”), respectively. BAE’s new CEO, Charles Woodburn, credited this growth to the increasing defense budgets worldwide.
Earlier this week, the Terminal High Altitude Area Defense (“THAAD”) system, which was previously designed for short-range defense, had its first test against an intermediate-range ballistic missile (“IRBM”), a weaponry system mirroring North Korea’s. The results of the test were promising as the system seamlessly defended against the incoming threat.
KippsDeSanto maintains extensive relationships in all facets of the aerospace / defense and technology industries we serve, including current and former senior government officials, industry executives and technology thought leaders. Our goal is to connect leaders and decision-makers in an effort to facilitate the growth of value and attainment of strategic objectives. We regularly sponsor, participate in and host private events to facilitate this networking.
KippsDeSanto events are invitation only and CXO only. Please contact Tená Veney (firstname.lastname@example.org) if you are interested in attending future events.
June 07, 2017
Government Contracts Mergers & Acquisitions in 2017: Challenges and Opportunities on the Horizon
Cromwell & Moring-Washington, DC
May 10, 2017
Starburst Accelerator Event
Northrop Grumman’s offices- Hawthorne, CA
May 04, 2017
DHG’s 22nd Annual Government Contracting Update
April 19, 2017
Exit Options Analysis (EPI Chapter)
Ritz-Carlton, Tysons Corner- VA
March 29, 2017
2017: A New Paradigm Shapes Government Contracting
Ritz-Carlton, Tysons Corner – VA
March 22, 2017
AMAA MD/DC/VA Chapter 1st Quarter 2017 Event
Womble Carlyle Sandbridge & Rice, PLLC- Tysons, VA