A&D Weekly News & Transactions- Week 20

Industry Headline News

Boeing Chair Steve Mollenkopf, formerly of Qualcomm, is leading the search for a new CEO amid the company's worst crisis in years
May 18, 2024 - The board is open to industry outsiders, focusing on fresh leadership to tackle Boeing's deep-rooted issues. Candidates include industry veterans and internal prospects, with the goal of restoring Boeing’s safety culture and market position. (Seattle Times)

United Airlines has been cleared by the FAA to add new aircraft and routes after a safety review prompted by recent incidents, including a 777 losing a tire
May 16, 2024 - United is now allowed to resume certification activities, as ongoing FAA review continues, especially considering recent safety incidents across the aviation industry. (CNBC)

BAE Systems secures a $54m contract from the U.S. Navy to develop the Dual Band Deco, replacing existing towed decoys on Navy fighters
May 16, 2024 - The DBD aims to enhance aircraft protection by emitting signals mimicking the host's electromagnetic signature, diverting radar-guided missiles. The contract follows the disqualification of Raytheon's bid due to a conflict of interest involving a former Navy employee's involvement in preparing the bid. (Aviation Week)

Lockheed Martin faces a parking shortage for undelivered F-35 jets due to delays in the Technology Refresh 3 and Block 4 upgrades
May 16, 2024 - The U.S. GAO highlighted that TR-3’s software issues have stalled deliveries since July 2023, causing a backlog and posing risks of damage to stored jets. Lawmakers propose reducing next year's F-35 procurement and reallocating funds to ensure the program's upgrades and testing capabilities are adequately supported. (Defense News)

Spirit Aerosystems is laying off around 400 employees in Wichita, Kansas, due to high debt and reduced production from its main customer, Boeing
May 16, 2024 - The layoffs follow earlier measures like limiting overtime and hiring due to decreased output of 737 MAX jets after a January incident. The company aims to handle the layoffs compassionately, with affected employees to be informed soon. (Reuters)

Australia has unveiled a record (U.S.) $36.8b defense budget for the next fiscal year, marking a 6.3% increase and 2.02% of GDP
May 15, 2024 - With investments in nuclear submarines under the AUKUS agreement and various military assets across the Navy, Army, and Air Force. The budget also allocates funds for defense intelligence, cybersecurity, and aid to Ukraine, while addressing workforce challenges amid increased living costs. (Defense News)

Safran Electrical & Power inaugurated a new 13,500m² factory in Chihuahua, Mexico, adding 800 employees to support Boeing's 737, 767, and 777 programs
May 14, 2024 - Production began in August 2023, with deliveries already underway. Ricardo Varela highlighted the plant's role in enhancing safety, reliability, and passenger experiences. (Safran Group)

Northrop Grumman has announced key leadership changes, with Dave Keffer and Mark Caylor set to retire in 2024 and 2025
May 14, 2024 - Kenneth B. Crews will succeed Keffer as CFO, while Roshan Roeder will take over from Caylor as president of Mission Systems, and Ben Davies will become president of Defense Systems. CEO Kathy Warden praised the departing leaders and expressed confidence in the new appointments to drive the company's strategy and growth. (Yahoo! Finance)

House lawmakers propose reducing the Pentagon's planned purchase of F-35 Joint Strike Fighters in fiscal 2025 from 68 to 58
May 13, 2024 - The Pentagon would initially receive only 48 jets until specific problems are resolved. This reduction aims to save $1 billion, which could be reinvested to address these issues and improve the overall program. (Defense News)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	M Wave Design Quantic Electronics [Arcline]	-	-	-	Simi Valley, CA	Defense Eletronics
2	Technology Solutions Provider ABT Global	-	-	-	Reston, VA	Government Services, IT Services and Software
3	Amazilia Aerospace Textron eAviation [Textron]	-	-	-	Munich, Germany	Controls & Systems

No.	Target Descriptions
1	M Wave is a supplier of ferrite-based RF and microwave components for aerospace, defense, and quantum computing applications. The company designs and manufactures passive waveguide and coaxial components, including isolators, circulators, adapters and terminations.
2	Technology Solutions is a provider of digital transformation and IT modernization solutions for private sector and U.S. federal government environmental, financial, and healthcare markets. The company applies agile principles to deliver secure digital solutions using low-code/no-code, cloud-based platforms, modern data science, and AI/ML methods, all guided by human-centered design.
3	Amazilia is a developer of digital flight controls, flight guidance and vehicle management systems for civil manned and unmanned aircraft. The company provides solutions ranging from the development of tailored flight guidance and control laws up to design, implementation, as well as qualification of reliable systems and components to realize entirely automated operations.