A&D Weekly - February 19, 2024

Industry Headline News

Airbus has confirmed plans to increase production and achieve ambitious delivery targets in its 2023 results
Feb. 15, 2024 - CEO Guillaume Faury emphasized that quality and safety will not be compromised for quantity during the production ramp-up. The company delivered 735 aircraft in 2023, with plans for around 800 deliveries in 2024. (AeroTime)

Airbus is strengthening its lead over Boeing, potentially challenging the long-standing duopoly in the airplane-manufacturing industry
Feb. 15, 2024 - With record-breaking new orders and a decade-spanning order backlog, Airbus aims for its highest-ever production rates in 2026, while posting an 11% increase in annual revenue to 65.4 billion euros ($70.2 billion). (WSI)

The Pentagon is considering an 18% reduction in orders for Lockheed Martin's F-35 fighter jets due to budget constraints
Feb. 14, 2024 - This move could result in a $1.6 billion hit for Lockheed Martin, impacting about a quarter of its revenue. The aerospace defense contractor, facing challenges with rising costs and legal disputes with suppliers, recently announced layoffs. (Star Telegram)

BAE Systems is set to complete its $5.5 billion acquisition of Ball Aerospace after receiving regulatory approvals
Feb. 14, 2024 - The Department of Justice granted early termination of a second information request, finding no antitrust concerns. Once finalized, Ball Aerospace will become BAE Systems' fourth operating sector, named Space & Mission Systems. (Space News)

The U.S. Air Force aims to award contracts for the first increment of the Collaborative Combat Aircraft program to competing contractors in 2024
Feb. 13, 2024 - The second increment is planned for 2025 and there are hopes for international partnerships. The program seeks to develop autonomous platforms enhancing fighter capabilities, and future iterations. (Air & Spaces Forces Magazine)

Boeing's two decades of outsourcing to 50 key suppliers for collaborative product development and manufacturing led to significant quality issues
Feb. 12, 2024 - Experts argue that Boeing's outsourcing strategy, initiated during the development of the 787 Dreamliner, lacks the close communication and coordination seen in successful models like Toyota, highlighting potential risks for the company's future. (Forbes)

Honeywell plans to invest $84 million in expanding its Olathe, Kansas manufacturing facility, creating 156 new jobs
Feb. 12, 2024 - The project aims to develop a resilient domestic supply chain for next-generation avionics, aligning with the future aviation. The expansion will be the most technologically advanced aerospace manufacturing centers, focusing on avionics, safety, flight control systems, and complex radio frequency systems. (Aerospace Manufacturing and Design)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Global Training Aviation Indra Sistemas	-	-	-	Madrid, Spain	Simulation & Training Systems
2	Seaford Consulting Crimson Phoenix [Godspeed Capital]	-	-	-	Bristow, VA	Government Services, IT Services and Software
3	Tekmasters Crimson Phoenix [Godspeed Capital]	-	-	-	Arlington, VA	Government Services, IT Services and Software
4	Cast-Rite Corporation ADC Aerospace	-	-	-	Gardena, CA	Machined & Cast Parts
5	Juno Technologies Sigma Defense Systems [Sagewind Capital]	-	-	-	San Diego, CA	Government Services, IT Services and Software
6	Adimec Teledyne Technologies	-	-	-	Eindhoven, Netherlands	Defense Electronics
7	Silent Sentinel Motorola Solutions	-	-	-	Ware, United Kingdom	Defense Electronics

No.	Target Descriptions
1	Global Training Aviation is a provider of simulation systems and training programs for private sector and international government aeronautical markets. The company has training centers in 3 continents (Spain, Indonesia and Colombia) equipped with 6 latest generation level D Full Flight Simulators, (ATR 72 500, ATR 72 600, B737 NG & 3 Airbus 320).
2	Seaford Consulting is a provider of full-systems lifecycle, integrated business, mission & IT solutions for private sector and U.S. federal government markets. The company's services include business intelligence and transformation; project and program management; systems and enterprise architecture; information security; AWS & cloud architecture; and ITIL based IT service management.
3	Tekmasters is a provider of "zero failure" classified IT mission support solutions for private sector and U.S. federal government intelligence markets. The company's services include learning development; mission operations; data forensics; customized application development; IT systems engineering and implementation; AWS/Azure/cloud; security and patch management.
4	Cast-Rite is a provider of advanced die casting and fabrication solutions. The company manufactures zinc and aluminum alloy die castings, as well as offer services, such as engineering, tooling and fabrication, and other value-added operations to serve a wide spectrum of defense, electronics, and commercial applications.
5	Juno Technologies is a provider of IT engineering, software development and technical support to U.S. federal government aerospace, defense, and naval markets. The company's services include Systems Integration; Fleet Systems Engineering Team (FSET); Fleet IT Support/Sustainment/SubLAN; Space and Naval Warfare (SPAWAR) Program Office; Foreign Military Sales (FMS); and Flyaway Kits (FAK).
6	Adimec is a manufacturer of customized high-performance industrial and scientific cameras for private sector and international government machine vision, healthcare, and global security markets. The company's cameras and lens assemblies deliver true accurate images and are manufactured in batches ranging from 50-500 per year.
7	Silent Sentinel is a manufacturer of advanced and highly modular surveillance camera platforms for land and maritime surveillance applications in private sector, U.S. federal government, and international government markets. Designed to operate in the harshest conditions, the company's rugged, thermal cameras offer clear visibility in complex and extreme environments.