A&D Weekly - April 15, 2024

Industry Headline News

Relativity Space secures an $8.7 million U.S. Air Force contract to develop real-time flaw detection in 3D printing for aerospace components
Apr. 14, 2024 - The contract aims to address congressional directives to enhance additive manufacturing for faster production of aerospace vehicles, focusing on in-situ process monitoring and non-destructive evaluation techniques. (Space News)

The U.S. Air Force is set to receive its first F-15E Strike Eagle equipped with an advanced electronic warfare system this summer
Apr. 12, 2024 - Eight F-15E jets are undergoing modifications with EPAWSS at Boeing's facility enhancing their capabilities for monitoring, jamming, and deceiving threats in contested environments. (Defense News)

John Slattery, executive VP and CCO of GE Aerospace, will depart in June, according to CEO
Apr. 11, 2024 - Slattery, initially appointed as CEO of GE Aviation, will transition to an advisory role as the aerospace business becomes standalone. (Flight Global)

Airbus CEO suggests a plausible acquisition of two Spirit AeroSystems plants in the US and UK if Boeing proceeds with its purchase of Spirit
Apr. 11, 2024 - Faury hints at Airbus's capability to be a suitable owner. The fate of the plants, employing 4,000 workers, is entangled in Boeing's crisis, with discussions ongoing about potential acquisitions, though valuations remain a challenge. (Yahoo! Finance)

Greece has finalized the purchase of 35 UH-60M Black Hawk helicopters from the US for $1.95 billion, approved by the US State Department in 2023
Apr. 10, 2024 - The deal includes personnel training and equipment for integration into the Hellenic Army, aiming to support Greece's defense modernization efforts and enhance NATO interoperability. (The Defense Post)

Thomas Gentile appointed as CEO & President of Hexcel Corporation
Apr. 9, 2024 - Succeeding Nick Stanage, Gentile will maintain leading Hexcel’s focus on innovation and growth. Hexcel reaffirms its 2024 and mid-term financial guidance alongside the leadership transition. (Yahoo! Finance)

H.I.G. Capital has acquired Segers Aero Corporation, a leading provider of MRO services for military aircrafts
Apr. 9, 2024 - Segers is known for its high-quality services and has approvals from key industry players. H.I.G. plans to support Segers' growth by investing in its capabilities and expanding its capacity under the current management team led by CEO Christo Kok. (H.I.G. Capital)

Albion River, a private investment firm, has offered $878 million, or $60 per share in cash, to acquire aerospace and defense supplier Ducommun
Apr. 8, 2024 - This proposal is currently under review by Ducommun's board, it represents a 23.5% premium to the company's last closing stock price. (Reuters)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Microtel Tyto Athene [Arlington Capital]	-	-	-	Greenbelt, MD	Satellite, Satellite Services & Space Systems
2	Antenna and Test Equipment Businesses [L3Harris Technologies] Fisica [Kanders & Company]	$200.0	-	-	Palm Bay, FL	Test & Measurement
3	Clear Creek Applied Technologies J.F. Taylor	-	-	-	Fairborn, OH	Simulation & Training Systems
4	Segers Aerospace H.I.G. Capital	-	-	-	Fairhope, AL	MRO & Logistics
5	Inrad Optics Luxium Solutions [Edgewater Capital and SK Capital]	$18.7	1.4x	7.7x	Northvale, NJ	Machined & Cast Parts
6	Alpha Aircraft Services Ventura Air Charters	-	-	-	Teterboro, NJ	MRO & Logistics
7	Approved Turbo Components Hartzell Aviation [Arcline]	-	-	-	Vero Beach, FL	MRO & Logistics
8	Torin Consulting RealmOne [Enlightenment Capital]	-	-	-	Aldie, VA	Government Services, IT Services and Software

No.	Target Descriptions
1	Microtel develops software and systems to help detect water on the moon, life on Mars, and the habitat of Saturn's moon Titan. The company's software development capabilities include embedded, real-time mission critical flight software to control spacecraft rovers and payloads; ground system software for satellite operations centers, ground stations, and system verification & validation.
2	The Antenna and Test Equipment businesses of L3Harris specialize in a wide range of airborne and ground-based antennas, test equipment, simulators, and electromagnetic systems for use across communications, radar, warning systems, nuclear effects testing, and imaging and remote sensing.
3	CCAT is a provider of mission-critical simulation, training solutions development, and test and evaluation services for private sector and U.S. federal government aerospace and defense markets. The company's core capabilities include system of systems analysis; interoperability; command & control; intelligence, surveillance & reconnaissance; and special mission operations.
4	Segers is an FAA approved provider of aircraft engine and propeller overhaul services for private sector and U.S. federal government aerospace and defense markets. The company is a Rolls-Royce Authorized Maintenance Center for the T56/501 engine, a Lockheed Martin Hercules QEC Service Center, and Honeywell-Approved Fuel Component Service Center for the T56/501.
5	Inrad is a manufacturer of custom crystal photonic components and devices for use in private sector and U.S. federal government aerospace, defense, and scientific markets. The company manufactures standard and custom precision glass and metal optical components, synthetic optical crystals, including crystal growth, laser accessories, OEM assemblies and systems and provide thin film coatings.
6	Alpha Aircraft is an AOG maintenance company that provides services such as scheduled maintenance, engine and airframe repairs, navigation system updates, and MEL discrepancy resolutions for time-sensitive flights.
7	Approved Turbo Components specializes in overhaul or exchange of turbocharger systems, complete in-house service-repair-testing, heat blanket sales, pressure relief valves, wastegates, and controllers.
8	Torin is a provider of operations support and software development solutions for private sector and U.S. federal government intelligence markets. The company provides custom software development, server administration, network engineering, cyber security, and DevOps solutions.