A&D Weekly News & Transactions - Week 3

Industry Headline News

Anduril has chosen Columbus, Ohio, for its first large-scale production facility, Arsenal-1, dedicated to manufacturing autonomous weapons, including drones and cruise missiles
Jan. 16, 2025 - The plant, which could eventually employ 4,000 people, will utilize automation and simplified designs to produce tens of thousands of low-cost, uncrewed systems to meet growing defense demands. Anduril aims to disrupt the defense industry by delivering affordable, high-volume munitions to support U.S. and allied security needs, addressing current production constraints in the defense sector. (New York Times)

Airbus CEO expressed confidence in achieving the target of producing 75 single-aisle aircraft per month by 2027, citing investments, supply chain focus, and proactive hiring
Jan. 15, 2025 - While short-term supply chain issues, including engine shortages from CFM, have impacted deliveries, Faury emphasized they would not affect the long-term production goal. Airbus plans to maintain the 75-aircraft monthly rate for several years to ensure sustained demand exceeds supply. (Reuters)

Airbus CEO Guillaume Faury suggested that Europe's two rival fighter jet programs, FCAS and GCAP could potentially merge to optimize resources and achieve a unified European defense
Jan. 15, 2025 - He emphasized that combining efforts would make sense financially and technologically, though it would require governments to align their visions and plans in the coming years. Despite potential challenges, Faury sees this as a pragmatic solution given budgetary constraints and the need for efficiency. (Reuters)

Gulfstream Aerospace has opened a $130M, 225,000-square-foot service center at Mesa Gateway Airport, Arizona, capable of servicing up to 13 large-cabin aircraft simultaneously
Jan. 13, 2025 - The facility, designed for sustainability and efficiency, has created over 250 jobs with 100 more expected this year and will soon receive LEED Silver certification. This expansion aligns with Gulfstream's commitment to enhancing its global service network and supporting workforce development through partnerships with local institutions. (AZ Big Media)

Outgoing Air Force Secretary Frank Kendall warns that the U.S. must significantly expand and modernize the Space Force to counter growing threats from China and Russia
Jan. 13, 2025 - Kendall emphasized the need for advanced AI, autonomous systems, and robust space-based defenses by 2050. He stresses that space will be the decisive domain for military operations, requiring transformative investments and deeper partnerships with the private sector to maintain U.S. dominance. Failure to act could leave U.S. space capabilities vulnerable to adversaries' increasingly sophisticated systems. (Space News)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Blackspoke Crimson Phoenix [Godspeed Capital]	-	-	-	Arlington, VA	Government Services, IT Services and Software
2	Maritime Surveillance Associates Sentient Digital	-	-	-	Brunswick, ME	Government Services, IT Services and Software
3	JAMCO Bain Capital	$634.0	1.3x	17.7x	Tokyo, Japan	Aircraft Interiors
4	Integra Technologies Micross Components [Behrman Capital]	-	-	-	Wichita, KS	Defense Electronics
5	Edge Analytic Solutions [Amentum Holdings] Prescient Edge	-	-	-	McLean, VA	Government Services, IT Services and Software
6	Engineering Division of Carr's Group [Carr's Group] Cadre Holdings	$77.6	1.5x	7.1x	Pittsburgh, PA	Specialty Defense Systems and Services
7	Grove Aircraft Landing Gear Systems Game Aerospace	-	-	-	Bentonville, AR	Components & Subsystems

No.	Target Descriptions
1	Blackspoke is a provider of geospatial solutions, software development, and enterprise technology services for private sector and U.S. federal government intelligence markets. The company provides modern software development solutions in support of critical mission requirements.
2	Maritime Surveillance Associates is a provider of specialized software products, technical engineering and software development services for private sector and U.S. federal government defense and maritime markets. MSA's capabilities include mission reconstruction, post-flight analysis tools as well as acoustic, magnetic, and image signal processing, mathematical modeling, and trajectory computation.
3	JAMCO is a developer and manufacturer of aircraft interiors and seats as well as engine parts and other components. The company is the world's largest manufacturer of aircraft galleys and lavatories for most Boeing and Airbus commercial aircraft. The company manufactures a range of products from aircraft engine parts to military aircraft equipment, such as heat exchangers.
4	Integra Technologies provides full-turnkey capabilities of die preparation, packaging, testing and characterization of Hi-Rel semiconductor components and related value-added services for private sector and U.S. federal government communications, medical, and missile defense markets.
5	Edge Analytic Solutions delivers mission-critical services for the Defense Intelligence Enterprise, spanning analysis, data science, engineering, counterintelligence, and collection management.
6	The Engineering Division of Carr's Group designs, manufactures and services bespoke equipment, vessels, precision components and remote handling systems alongside providing specialist engineering services for private sector, international government, and U.S. federal government defense and nuclear markets.
7	Grove Aircraft Landing Gear Systems designs and manufactures all-aluminum landing gear systems for light aircraft, offering durability and corrosion resistance. The company provides solutions for experimental, aerobatic, and bush planes. The company serves general aviation markets worldwide.