The second half of 2024 saw significant consolidation across the aerospace and defense (A&D) sector, with major transactions underscoring continued strategic realignment, supply chain integration, and technological expansion. The following are the Top 5 Largest Aerospace & Defense M&A Deals of 2H 2024, ranked by total enterprise value (TEV):
1. Boeing Reacquires Spirit AeroSystems ($8.4B TEV, 1.3x revenue)
Boeing (NYSE: BA) is set to reacquire Spirit AeroSystems (NYSE: SPR) in an all-stock transaction valued at $8.4 billion (1.3x revenue). The deal marks a critical vertical reintegration for Boeing, enhancing control over aerostructure manufacturing and addressing supply chain vulnerabilities amid increasing production challenges. Announced July 1, 2024, the acquisition reinforces Boeing’s commitment to stabilizing operations while ensuring long-term platform delivery integrity.
2. AeroVironment Acquires BlueHalo ($4.1B TEV, 4.6x Revenue, 27.0x EBITDA)
AeroVironment (NASDAQ: AVAV) expands its defense technology footprint with the $4.1 billion acquisition of BlueHalo, a leader in counter-UAS, electronic warfare, and space systems. The acquisition, announced November 19, 2024, positions AeroVironment as a premier player in next-generation autonomous and AI-driven defense capabilities, bolstering its unmanned aircraft systems (UAS) portfolio. It is important to note the transaction is an all-stock deal and AeroVironment itself was trading between 50.0x - 60.0x EBITDA prior to the announcement.
3. Apollo Acquires Barnes Group ($3.6B TEV, 2.3x Revenue, 10.8x EBITDA)
Apollo Global Management (NYSE: APO) executed a $3.6 billion leveraged buyout of Barnes Group (NYSE: B), solidifying its position in aerospace component manufacturing and industrial solutions. The acquisition underscores private equity’s continued interest in high-value aerospace aftermarket and precision engineering assets.
4. Stonepeak Acquires Air Transport Services Group (ATSG) ($3.1B TEV, 1.6x Revenue, 6.9x EBITDA)
Stonepeak Partners, a global infrastructure investor, acquired ATSG (NASDAQ: ATSG) for $3.1 billion in a move to capitalize on rising demand for air cargo and leasing services. The transaction, announced November 4, 2024, aligns with increased e-commerce logistics demand, highlighting the continued strategic importance of air freight infrastructure investments.
5. Amphenol Acquires CommScope’s OWN & DAS Business ($2.1B TEV, 1.8x Revenue, 7.0x EBITDA)
Amphenol (NYSE: APH) strengthened its wireless communications portfolio through the $2.1 billion acquisition of CommScope’s Outdoor Wireless Networks (OWN) & Distributed Antenna Systems (DAS) businesses. Announced July 18, 2024, the deal enhances Amphenol’s network connectivity solutions, capitalizing on 5G and defense-grade communication system expansion.
Key Takeaways & Market Outlook
The 2H 2024 A&D M&A cycle showcased strong momentum in aerospace supply chain integration, next-gen defense technologies, and infrastructure investment. Boeing’s Spirit AeroSystems reintegration and AeroVironment’s expansion into counter-UAS systems highlight the critical need for manufacturing control and advanced warfighting capabilities. Meanwhile, private equity and infrastructure funds remain highly active, targeting high-growth aerospace, defense, and communications assets.
With ongoing geopolitical tensions, increased defense spending, and evolving technology requirements, the 2025 M&A pipeline is expected to sustain robust activity, particularly in aerospace OEM consolidation, space-based defense systems, and advanced AI-driven autonomy solutions.
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