M&A Activity Accelerates

November saw three major aerospace and defense transactions, signaling strong confidence in the sector and continued portfolio realignment.

TriMas Corporation agreed to sell its aerospace fasteners and components division for $1.45 billion to an affiliate of Tinicum L.P., with Blackstone funds as minority investor. The deal, valued  at ~18x EBITDA, follows activist pressure from Barington and reflects TriMas’ strategy to focus on its core packaging business.

Arcline Investment Management will acquire Novaria Group from KKR for $2.2 billion. Novaria, which tripled in size under KKR through ~13 add-ons, specializes in aerospace fasteners and components. This move, along with Arcline’s $1.8 billion purchase of Kaman’s aerospace unit in 2024, underscores private equity’s confidence in aerospace supply chains.

Parker-Hannifin Corporation announced a $9.25 billion acquisition of Filtration Group Corporation (a Madison Industries company), gaining a business with $2 billion in sales—85% from high-margin aftermarket revenues. At ~19.6x EBITDA (~13.4x adjusted), the deal highlights strategic buyers’ willingness to pay premiums for proprietary technology and recurring revenue streams.

Common Thread

Each deal reflects a reshaping of portfolios in pursuit of long-term growth. Corporates are refocusing on core businesses, private equity is scaling niche platforms, and strategics are targeting high-recurring-revenue segments. The result: a robust middle-market A&D M&A environment fueled by secular aerospace growth and strong valuations.

Continue reading