A&D Weekly - April 1, 2024

Industry Headline News

The National Guard's budget wish list aims to restore the dozen fighter jets cut from the Air Force's original fiscal 2025 request
Mar. 29, 2024 - These requests include additional funds for conformal fuel tanks for F-15EXs, acquiring more F-15EX Eagle IIs, F-35A Joint Strike Fighters, C-130J Super Hercules transport aircraft, and increasing pilot flying hours and personnel. These additions aim to bolster the Guard's fleet capabilities and operational readiness. (Defense News)

Texas Attorney General Ken Paxton has initiated an investigation into Spirit AeroSystems
Mar. 29, 2024 - This comes after Boeing CEO Dave Calhoun announced his departure amidst concerns from regulators and airlines following an incident involving a panel flying off a 737 MAX 9 jet in January and since the repeated issues with certain parts. (Reuters)

GE Aerospace CEO Larry Culp rejects speculation about leading Boeing, affirming his commitment to GE's aerospace division
Mar. 28, 2024 - Despite being touted as a potential successor to Boeing's CEO, Culp emphasizes his dedication to GE's transition to a pure-play aerospace company. He highlights his excitement for the future of GE Aerospace and his preference to focus on the company's growth. (Aviation Week)

Honeywell announced they are acquiring Civtanavi Systems to enhance its aerospace autonomous operations and expanding its European presence
Mar. 27, 2024 - This acquisition strengthens Honeywell's position in commercial and defense sectors, providing opportunities for autonomous operations and aligning with its portfolio focus on aviation and automation. (Honeywell)

The French government is threatening defense firms with requisitioning and order prioritization to accelerate missile and artillery shell production
Mar. 27, 2024 - Armed Forces Minister Sébastien Lecornu is emphasizing the need to aid Ukraine and secure export contracts. France plans to double its order for long-range Aster missiles and is preparing a new military aid package for Ukraine while urging defense firms to boost production to meet demand. (Defense News)

Boeing's upcoming CEO faces a daunting task amidst a company in crisis
Mar. 26, 2024 - David Calhoun's successor must navigate ongoing investigations, supply-chain disruptions, and the need for internal and external confidence rebuilding efforts. The new CEO will inherit a complex situation with long-term implications, requiring decisive action to address Boeing's deep-seated issues and restore trust in its operations. (WSJ)

Saab is set to expand its presence in the U.S. with a new facility manufacturing ground combat weapons and missile systems
Mar. 26, 2024 - The facility will support the Ground-Launched Small Diameter Bomb system and close combat weapons. The facility reflects Saab's substantial growth in land systems and marks its strategic expansion within the American defense market to quadruple its global production capacity. (Defense News)

Airbus is expressing interest in purchasing part of Spirit AeroSystems, particularly the Belfast plant associated with its A220 program
Mar. 25, 2024 - This potential acquisition could impact Airbus and Boeing's strategic plans, with Airbus CFO mentioning the possibility of acquiring Spirit assets if Boeing proceeds with the purchase. Spirit's ties to Airbus, including its Belfast plant, have been subject to discussion amidst Boeing's interest in the company. (FL360 Aero)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	INFODAS Airbus Defense and Space [Airbus SE]	-	-	-	Cologne, Germany	Cybersecurity, Intelligence Services and Homeland Defense
2	Near Space Aerostar International [TCOM]	-	-	-	Tillamook, OR	Satellite, Satellite Services & Space Systems
3	SoftTech Solutions Synergy ECP [Falfurrias Capital]	-	-	-	Fulton, MD	Government Services, IT Services and Software
4	Aqua Blasting Metal Finishing Technologies [Battle Investment Group]	-	-	-	Bloomfield, CT	Machined & Cast Parts
5	Ammcon Fairbanks Morse Defense [Arcline Investment Management]	-	-	-	Green Cove Springs, FL	Machined & Cast Parts
6	Sdv Solutions Park Place Technologies	-	-	-	Williamsburg, VA	Government Services, IT Services and Software
7	Civitanavi Systems Honeywell International	$216.6	4.4x	15.0x	Pedaso, Italy	Sensors & C4ISR
8	Ada Core Technologies Battery Ventures	-	-	-	New York, NY	Government Services, IT Services and Software

No.	Target Descriptions
1	INFODAS is a provider of cybersecurity and IT solutions for private sector and international government defense and critical infrastructure markets. The company's SDoT Security Gateway meets the highest security requirements of the German Federal Office of Information Security (BSI), EU and NATO.
2	Near Space is a provider of high altitude/near space platforms and flight services for private sector and U.S. federal government aerospace and environmental markets. NSC employs a unique set of capabilities to provide services in support of high altitude balloon, airship, and unmanned aerial vehicle flight operations and is capable of providing commercial engineering, production, and flight operations within a single organization.
3	Softtech Solutions is a provider of software and systems engineering, big data and cloud computing, and informational retrieval systems for private sector and U.S. federal government defense markets. SoftTech Solutions engineers are the core contributors to the micro-learning gamification platform, SkillTree, which Intelligence Community customers rely on to train analysts on new and existing applications and tools.
4	Aqua Blasting is a provider of shot peening and blasting services to the aerospace, defense, medical, and semiconductor markets. The company's services enhance the durability, performance, and appearance of metals and composite materials and help to extend the lifespan of critical components.
5	Ammcon is a CNC manufacturer of critical fittings and assembled components used on the Virginia and Columbia Class submarine programs, as well as the Ford Class aircraft carrier program. The company is capable of manufacturing plastics, steel, brass, bronze, aluminum, stainless, castings, forgings, weldments, and exotic alloys such as Monel^TM, K Monel^TM, Titanium, Inconel^TM, or Hastelloy^TM.
6	SDV is a third party provider of warranty service and client-centric data center infrastructure solutions exclusively to Federal Government agencies. The company provides warranty support for major OEMs and provides stateside and overseas in-person systems analysis and repair services with cleared technicians strategically positioned in the U.S. and around the world.
7	Civitanavi is a provider of high-tech inertial navigation and stabilization systems for private sector and international government aerospace, defense, and industrial markets. The company is a vertically integrated inertial system supplier with proprietary and ITAR free FOG (Fiber Optic Gyroscope) in house manufacturing processes, advanced Navigation and inertial sensor fusion algorithms.
8	AdaCore programming language designed for large, long-lived applications where safety, security, and reliability are critical. AdaCore's flagship product is the GNAT Pro development environment, which comes with expert online support and is available on more platforms than any other Ada technology.