Defense Contracting Executives Remain Cautious On M&A

摘要

While some in the contracting industry hope 2015 could bring to fruition a new round of defense mergers and acquisitions, many defense executives say large deal-making is not a high priority. Certainly, there have been several significant mergers in recent months, including Engility's announcement that it will buy TASC in a $1.1 billion deal and Alliant Techsystems' plan to merge its defense and aerospace businesses with Orbital. Engility's CEO expects more to come. "When there is more capacity than demand, something needs to give," Tony Smeraglinolo said in a speech last week. "I think we have begun to see that in terms of industry consolidation."