A New Era for Aerospace & Defense

January closed with strong momentum in Aerospace & Defense M&A, led by headline transactions and a sizable shift in U.S. defense policy. Strategic buyers and private equity firms continued to pursue high-value assets, while new federal directives introduced both tailwinds and complexity to the sector’s outlook.

TransDigm announced a $2.2 billion acquisition of Victor Sierra Aviation Holdings LLC and Jet Parts Engineering, LLC from Vance Street Management. The all-cash transaction, valued at 7.86x LTM revenue, adds a portfolio of proprietary PMA and OEM-alternative aftermarket parts serving commercial, regional, and cargo airline customers. The deal follows TransDigm’s $960 million acquisition of Stellant Systems in December 2025, a supplier of high-power RF and microwave components for defense and space applications. Together, the two transactions underscore TransDigm’s continued focus on acquiring niche, high-margin aerospace and defense assets with strong aftermarket exposure.

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