A&D equities fell sharply in September, diverging from broader benchmarks. The Mesirow A&D Equity Composite declined 7.10%, compared with a 9.95% decline in the S&P A&D Index, a 0.45% decline in the S&P 500 and a 1.86% gain in the Nasdaq Composite. Airline equities rebounded: the Nasdaq US Benchmark Airlines Index rose 4.54% and the S&P 500 Passenger Airlines Index gained 5.70%. The contrast between sector share-price weakness and the strategic transactions below argues against treating public-market performance as a uniform signal for private-company valuations.
GE Aerospace agreed to acquire Consolidated Precision Products from Warburg Pincus and Berkshire Partners for $11.75 billion, with closing expected in the second half of 2027. GE disclosed approximately 26x 2027 EBITDA before synergies and approximately 18x including expected net synergies. The transaction highlights the strategic value of mission-critical castings capacity, but the synergy-adjusted multiple is not a standalone valuation benchmark for the broader supply chain.
Capability-led acquisitions extended into specialized components, coatings and aviation software. Arxis acquired Schatz Bearing and StratEdge; Valence Surface Technologies acquired Cametoid Technologies; and Veryon acquired Polaris Aero. These deals support a consolidation theme around differentiated products and services; undisclosed pricing does not establish a broader increase in transaction multiples.
In cyber intelligence, REDLattice agreed to combine with Bold Eagle Acquisition Corp. at a $1.25 billion pre-money enterprise value. The announced $335 million of committed capital comprises $275 million of convertible notes and $60 million of common-stock PIPE financing. Closing was expected around year-end 2026, subject to approvals and other conditions; this is a proposed public listing, not a completed capital-markets exit.
Mesirow Financial, Inc., member FINRA, SIPC.