A&D Weekly - March 25, 2024

Industry Headline News

Boeing CEO Dave Calhoun will step down at year's end, along with Boeing Commercial Airplanes
Mar. 25, 2024 - The debut took place at the new CityAirbus test center in Donauwörth, part of Airbus' investment in Advanced Air Mobility, where tests for electric motors, flight controls, and avionics are underway ahead of the prototype's maiden flight later this year. (Seattle Times)

Korean Air bypasses Boeing, opting for a $14 billion deal with Airbus for 33 A350 jets ahead of its merger with Asiana Airlines
Mar. 21, 2024 - The order includes 27 A350-1000s and 6 A350-900s, prioritizing Airbus over Boeing's yet-to-be-certified 777X. The move aims to streamline the fleet, meet sustainability goals, and capitalize on Airbus's modern jets. (Fortune)

Deputy Secretary of Defense Kathleen Hicks emphasizes the necessity of bolstering the American defense industrial base
Mar. 20, 2024 - The COVID-19 pandemic and conflicts like the war in Ukraine underscore the fragility of supply chains and the urgent need for modernization. The current reliance on continuing resolutions impedes progress and competitiveness. (U.S. Department of Defense)

Bahrain strengthened its defense capabilities by acquiring $2.2bn worth of equipment from the U.S., including fifty M1A2 SEPv3 Abrams main battle tanks
Mar. 20, 2024 - This procurement aligns with Bahrain's commitment to enhancing its military readiness amid evolving security threats. The acquisition involves key contractors like General Dynamics Land Systems. (Army Technology)

Boeing has secured a $1.1bn contract with the US Navy to provide advanced F/A-18F and F/A-18E fighter jets
Mar. 20, 2024 - The contract includes the delivery of 10 F/A-18F Lot 46 aircraft, two F/A-18F, and five F/A-18E Lot 47 aircraft, with strategic work spanning various locations. Boeing's commitment signifies a long-term partnership with the Navy, reinforcing national security interests amidst challenges in the commercial aircraft sector. (Naval Technology)

Lockheed Martin aims to expand its satellite business through strategic partnerships
Mar. 20, 2024 - Lockheed emphasizes its interest in firms with expertise in satellite payloads and is actively pursuing ventures with companies like ABL Space and Terran Orbital. Lockheed aims to address government demands for faster data and increased space resilience. (Space News)

Boeing is reportedly considering selling at least two of its defense businesses, one being Digital Receiver Technology Inc.
Mar. 19, 2024 - Financial advisers have reached out to potential buyers for smaller units, with discussions pre-dating recent incidents, while plans regarding other subsidiaries like Argon ST remain under review. (Breaking Defense)

Boeing is planning to reduce Spirit AeroSystems' ties to Airbus in a potential deal
Mar. 19, 2024 - Spirit's Airbus-related business accounts for a significant portion of its revenue, prompting Boeing to explore offloading or redeploying specific businesses supplying Airbus components. (Reuters)

Japan plans to lift export restrictions on the F-X fighter jet, developed jointly with the UK and Italy
Mar. 18, 2024 - The move aims to enhance Japan's aircraft modernization plan and boost its defense industry, despite facing dissent from opposition parties and coalition partners. (Defense News)

Embraer anticipates supply chain challenges to impede aircraft deliveries in 2024
Mar. 18, 2024 - Estimates suggest executive jet deliveries could reach 125-135, up from 115 in 2023. Despite expected revenue growth and improved cash flow projections, supply chain issues persist, impacting the company's operations and financial performance. (Reuters)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	JHT Precise Systems [Bluestone Investment Partners]	-	-	-	Orlando, FL	Simulation & Training Systems
2	Reeq B.V. Rheinmetall Defence Nederland B.v.	-	-	-	Venlo, Netherlands	Unmanned Vehicles
3	Blue Tide Marine Black Sea Technologies [Razor's Edge Management]	-	-	-	Sufolk, VA	Navy/Maritime
4	JJR Solutions Logistics Management Institute	-	-	-	Dayton, OH	Government Services, IT Services and Software
5	Aerofab NDT Precision Aerospace Group	-	-	-	Kent, WA	Machined & Cast Parts
6	Global Systems Technologies Sayres and Associates [Broadtree Partners]	-	-	-	Yardley, PA	Government Services, IT Services and Software

No.	Target Descriptions
1	JHT is a provider of training & simulation, technical documentation, environmental and marine sciences, and professional services to private sector and U.S. federal government aerospace, defense, and environmental markets. The company produces interactive manuals for communications and intelligence equipment shipped to combat theaters for installation into combat vehicles.
2	Reeq develops and manufactures lightweight mobile energy sourced tactical transport vehicles for commercial, private sector, and international government automobile and defense markets. Currently, REEQ's vehicle portfolio consists of an Unmanned Ground Vehicle (UGV), a side-by-side buggy and a quad, all three with exactly the same fully electric drive train, all fully prepared for autonomy.
3	Blue Tide Marine is a provider of highly specialized maritime logistics services for private sector and U.S. federal government markets. The company's services include aircraft & vessel charters and crewing, exploration diving, dive training, maritime security and air & amphibian services.
4	JJR is a provider of low-code, cloud-based applications with human-centered design and agile principles for private sector and U.S. federal government defense and healthcare markets. The company's solutions digitally transform workforces with secure, tailorable capabilities that speed up operations, streamline processes, and empower informed decisions.
5	Aerofab NDT is a manufacturer of standards, custom kit boxes, eddy current probes, ultrasonic transducers, and accessories used in the nondestructive testing of commercial aircraft components.
6	GST is a provider of test and evaluation services, model-based systems engineering, logistics, research and development to private sector and U.S. federal government defense and homeland security markets. The company's capabilities include systems engineering, research and development, test & evaluation, and human factors engineering.