A&D Weekly - January 22, 2024

Industry Headline News

Boeing has acquired full ownership of its first manufacturing facility in Malaysia

Jan. 21, 2024 - Boeing acquired Aerospace Composites Malaysia Sdn Bhd by purchasing Hexcel Corp's shares in the joint venture. The move strengthens Boeing's presence in Southeast Asia, where its relationship with Malaysia Airlines dates back to 1972. (Business Times)

Kaman Corp. has agreed to be acquired by Arcline Investment Management, L.P. for approximately $1.8 billion in an all-cash transaction

Jan. 19, 2024 - Under the terms of the agreement, Kaman shareholders will receive $46.00 per share in cash, representing a premium of about 105% over the closing share price on January 18, 2024. The transaction is expected to close in the first half of 2024. (Arcline)

Airbus plans to double its procurement from India, increasing the total value of parts sourced to $1.5 billion in the coming years

Jan. 18, 2024 - With Indian carriers like IndiGo, Air India, and Alaska receiving deliveries of new planes, Airbus aims to boost the local aviation supply chain. This aligns with the significant growth in India, set to expand its fleet size to over 2,000 by 2030 from the current 700, with the government investing $12 billion in airport infrastructure. (Reuters)

Airbus solidified its position as the world's largest plane maker for the fifth consecutive year, surpassing Boeing in aircraft deliveries and orders in 2023
Jan. 17, 2024 - Boeing faces safety concerns and a PR crisis following the recent incident with its 737 Max 9, while Airbus gains ground in the aviation rivalry. Despite challenges, Airbus plans to increase production, indicating a shift in the industry's balance towards Airbus, with investors and customers perceiving it as more competent than Boeing. (NYT)

Canada has awarded Bell Textron Canada a $2.28 billion contract to sustain the Royal Canadian Air Force's fleet of CH-146 Griffon helicopters

Jan. 17, 2024 - The deal includes services such as component repair, overhaul, spares procurement, and heavy maintenance, aiming to extend the aircraft's life until at least the mid-2030s. The contract is set to commence in April and is expected to create or maintain 1,130 jobs primarily in provinces across Canada. (Flying Media)

The Space Development Agency has awarded a total of $2.5 billion to L3Harris, Lockheed Martin, and Sierra Space

Jan. 16, 2024 - $2.5B towards the development of 54 satellites for missile warning, tracking, and defense. The satellites, part of Tranche 2, will be evenly distributed among the three suppliers and include 48 for missile warning/missile tracking and six for missile defense. Tranche 2 is scheduled to launch no later than April 2027. (A&S Forces Magazine)

Boeing's 737 MAX jet deliveries to China face further delays

Jan. 15, 2024 - China Southern Airlines plans additional safety checks following the Alaska Airlines incident. The setback adds uncertainty to the already frozen deliveries, impacting Boeing's efforts to regain confidence in the Chinese market. This comes despite recent improvements in U.S.-China relations. (WSI)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Aerovel Corporation Airbus Helicopters, Inc. [Airbus SE]	-	-	-	White Salmon, WA	Unmanned Vehicles
2	Arquus SAS [AB Volvo] John Cockerill Group	-	-	-	Versailles, France	Land Systems
3	Vanderhorst Brothers, Inc. RTC Aerospace LLC [Stellex Capital Management LP]	-	-	-	Simi Valley, CA	Machined & Cast Parts
4	Cockpit & Legacy Displays Product Lines [Honeywell International] Sunshine Avionics LLC [HEICO Corporation]	-	-	-	Phoenix, AZ	MRO & Logistics
5	ANSYS, Inc. Synopsys, Inc.	$32,679.9	-	-	Canonsburg, PA	Government Services, IT Services and Software
6	Aviation Concepts, Inc. CORE Industrial Partners, LLC	-	-	-	Sunrise, FL	Distribution
7	Sayari Labs, Inc. TPG Inc.	$228.0	-	-	Washington, DC	Cybersecurity, Intelligence Services and Homeland Defense
8	Infinite Composites, Inc. Leonid Capital Partners	-	-	-	Tulsa, OK	Composites
9	The McGinty Machine Company, Inc. Cox Machine, Inc.	-	-	-	Wichita, KS	Machined & Cast Parts
10	Kaman Corporation Arcline Investment Management LP	$1,898.1	2.5x	13.9x	Bloomfield, CT	Components & Subsystems

No.	Target Descriptions
1	Aerovel is a developer and manufacturer of unmanned aerial systems and vehicles for private sector and U.S. federal government aerospace and defense markets. Aerovel is the creator of the Group 2 small tactical unmanned aerial system (STUAS), a backbone of US military and allied intelligence, surveillance, target acquisition and reconnaissance (ISTAR) missions worldwide.
2	Arquus designs, manufactures, and distributes a complete range of medium armoured vehicles (15-25 tonnes) and drivelines for heavier combat vehicles (up to 32 tonnes). Arquus offers a complete range of maintenance, support, training and logistic services to its customers allowing them to operate their fleets whenever, wherever and whatever the mission.
3	Vanderhorst Brothers is a manufacturer of complex machined components and high-precision parts for Tier 1 and OEM customers in aerospace, defense, and space markets. The company employs the use of lean manufacturing methodologies and is AS9100D certified. The company's capabilities include milling, turning, EDM, deburr, and programming.
4	The Cockpit Displays and Legacy Displays product lines provide Sunshine Avionics with the capability to produce, sell, and repair Boeing 737NG/777 Cockpit Displays as well as other Legacy Displays for Boeing 717, ATR, and select business and general aviation aircraft.
5	ANSYS develops and globally markets engineering simulation software used by designers and engineers across a broad spectrum of industries, including aerospace, automotive, manufacturing, nuclear, electronics and biomedical. The company develops open and flexible simulation solutions that enable users to simulate design performance directly on the desktop.
6	Aviation Concepts is a global distributor of used serviceable material (USM) components to the aftermarket commercial aviation industry. The company's customer base includes airlines, MROs and distributors. Aviation Concepts offers a wide range of USM components including avionics, rotable components, actuation systems, hydraulics, landing gear, and auxiliary power units (APUs).
7	Sayari is a provider of counterparty and supply chain risk intelligence solutions to government agencies, multinational corporations, and financial institutions. The Sayari platform integrates global corporate and supply chain data to surface risk insights for investigations, analytics, and supply chain risk management.
8	Infinite Composites is a manufacturer of advanced composite pressure vessels and structures for private sector and U.S. federal government aerospace and defense markets. IC's linerless pressure vessel, the infiniteCPV (iCPV), is a simplified all-composite design that allows users to take advantage of the maximum fuel storage capacity at the lowest possible weight.
9	McGinty Machine is a manufacturer of precision machine parts for the aerospace industry. The company's capabilities inclde3 3, 4, and 5 axis machining, brake forming, small benchtop assemblies, inspection, and water jet cutting. The company has approvals from Boeing, Spirit, Bombardier, Lockheed Martin, and Airbus.
10	Kaman is a manufacturer of high precision and engineered components/structures for private sector and U.S. federal government aerospace and defense markets. The company's aerospace and defense products include aircraft bearings and components; super precision, miniature ball bearings; complex metallic and composite aerostructures.