Deal activity in the commercial aerospace supply chain has accelerated as aircraft production plans become more predictable, prompting buyers to move on suppliers that can help meet growing jet output, according to industry data and interviews with dealmakers and suppliers.
Janes Capital Partners, an investment bank focused on aerospace and defense, tracked 154 publicly disclosed commercial aerospace transactions through August this year. That figure is close to the annual high of 159 deals recorded in 2019. While several headline transactions involved major manufacturers seeking to secure critical parts and capacity, most announced deals this year have consisted of strategic buyers and private equity firms acquiring midsized or smaller suppliers.
Buyers are prioritizing suppliers that offer a combination of scarce trained workers, specialized manufacturing capabilities and available capacity that can be redeployed to support higher production rates. Major manufacturers are also taking steps to lock down the supply of components critical to engine and airframe production.
One recent large-scale strategic move was GE Aerospace's announcement this week of a $12 billion purchase of castings supplier Consolidated Precision Products, an acquisition aimed at expanding engine production capacity. Earlier in the year, Parker Hannifin agreed in May to purchase Circor's aerospace division, which produces actuation and landing-gear systems, from private equity firm KKR for $2.6 billion.
Even excluding those very large transactions, the 154 deals announced through August had a combined reported value of $14 billion, Janes Capital data showed. By comparison, 157 transactions announced in all of last year totaled $37.5 billion. Deal activity two years ago peaked at 159 transactions with a combined value of $21.3 billion, before dropping to 82 deals worth $3.3 billion in 2020 when the pandemic sharply reduced air travel and production. The highest single-year value on record cited in the data was 2015, when 106 transactions amounted to $59.4 billion.
Boeing's production trajectory has been a central factor in buyers' calculus. The company endured a steep swing in jetliner deliveries over recent years as it worked through several crises, falling from 806 deliveries in 2018 to 157 in 2020. Deliveries recovered to 528 in 2023, but then production-quality issues reduced output to 348 the following year. Under new leadership, Boeing has stabilized production of its top-selling 737 MAX and begun increasing output, giving suppliers a clearer view of future demand. It delivered 600 jets last year, the most since 2018, and is on track to exceed that total this year.
Airbus has also steadily increased output after pandemic-related declines and plans to deliver 870 jets this year, a level above its prior pre-pandemic record of 863 deliveries in 2019.
"You could index the rate of increase in build and the rate of increase in deals, and it’ll track pretty closely," said Anita Antenucci, founder of 3Wire Partners investment bank, linking build rates to merger activity.
Bankers and dealmakers say a backlog of potential sellers is also emerging. Many private equity firms retained portfolio companies longer than usual during the pandemic because swings in production and high inventories made it difficult to value businesses reliably. "There was no way a buyer - or you - had any idea what your revenues were going to be," said Stephen Perry, managing director at Janes Capital, describing the valuation uncertainty that dampened transactions earlier.
As production rates stabilize and their trajectories become more predictable, buyers are increasingly comfortable incorporating expected future performance into valuations. That shift in confidence influenced deals last year when France-based DEMGY expanded into Boeing’s supply chain by acquiring Tool Gauge, a family-owned midsized supplier of jetliner interior parts located in Tacoma, Washington near Boeing’s 737 plant. DEMGY moved despite Boeing still having production challenges at the time, wagering that Boeing's recovery would materialize and helping it avoid a bidding war for Tool Gauge, according to Mike Walter, president of DEMGY's North American operations. He declined to disclose the purchase price. DEMGY reported global revenue of €125 million in 2025.
Competition for suppliers has broadened, however, particularly with increased interest from private equity firms that view aerospace supply-chain companies as attractive assets as jet production ramps. Small shops and local manufacturers are experiencing higher levels of inbound interest from potential buyers. Susan Kasa, owner of Boulevard Machine, a small machine shop with a couple dozen workers near Springfield, Massachusetts, said she now receives "two to three calls a day" from prospective buyers. Kasa cited her trained workforce as an important asset in an industry facing skilled labor shortages.
Dealmakers and suppliers say buyers are focused not only on current capacity but also on the ability to sustain higher production and to supply critical components and labor. The resulting uptick in transaction volume reflects a broader commercial aerospace market that is moving from crisis recovery toward capacity expansion, with implications for suppliers, investors and manufacturers aiming to lock in long-term inputs.
Data snapshot
- 154 publicly disclosed commercial aerospace deals tracked through August this year.
- 154 deals had a combined reported value of $14 billion (does not include GE's September transaction).
- Comparisons: 157 deals worth $37.5 billion in the prior year; 159 deals worth $21.3 billion in 2019; 82 deals worth $3.3 billion in 2020; highest annual value 2015 with 106 deals totaling $59.4 billion.