A&D Weekly News & Transactions - Week 22

Industry Headline News

Boeing and NASA canceled the Starliner launch attempts on Saturday and Sunday due to technical issues, delaying the crewed mission to the ISS
Jun. 1, 2024 - The next potential launch dates are June 5 or 6, with an investigation underway to identify the cause of the malfunction. This mission is crucial for Boeing, as it aims to certify the Starliner for regular NASA missions, despite years of delays and significant financial setbacks compared to SpaceX's Dragon capsule. (CNBC)

The FAA will not allow Boeing to increase 737 MAX production yet due to ongoing safety concerns and continued oversight
May 30, 2024 - FAA Administrator Mike Whitaker stated Boeing needs to demonstrate sustained quality and safety improvements, with the FAA monitoring progress through regular meetings. (Reuters)

Collins Aerospace is investing $200m to expand its carbon brake plant in Spokane, Washington, by over 50%
May 30, 2024 - This expansion aims to meet the increasing demand for its carbon brakes from commercial and military aircraft customers, leveraging its Duracarb carbon disk technology known for durability and cost-effectiveness. (Thomas)

Canada invests $11.2b in new training aircraft for its Air Force, along with $2.58 billion for logistics vehicles
May 30, 2024 - This includes a contract for 70 training aircraft from SkyAlyne for the Future Aircrew Training program, marking the largest RCAF recapitalization since WWII. The investment is expected to boost the Canadian economy, creating or maintaining 3,400 jobs over 25 years. (Army Technology)

Boeing has secured a $7.5b contract from the U.S. Air Force to supply Joint Direct Attack Munition kits, converting unguided bombs into precision-guided weapons
May 28, 2024 - Including tail kits, spares, repairs, and technical assistance, with additional funding from the Navy and foreign military sales. This contract comes amid concerns about U.S. munitions stockpiles and production capacity to support both national defense and allied nations. (Defense News)

TransDigm has announced an agreement to acquire Raptor Scientific, for approximately $655 million in cash
May 28, 2024 - Raptor Scientific is expected to generate around $90 million in revenue for 2024 and the acquisition will enhance its portfolio with highly engineered, proprietary products pending regulatory approvals. (PR Newswire)

Pratt & Whitney Canada has commenced the construction of a new facility in Morocco to manufacture parts for aircraft engines like the PT6
May 27, 2024 - This leverages Casablanca's growing aerospace hub, with PWM already progressing in local hiring and machine installation, aiming to be operational next year. The facility will enhance efficiency, quality, and environmental practices, complementing P&WC's existing sites to meet global demand. (AviTrader)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Allegient Defense [NowVertical Group] BCS [Asserac Group]	$12.5	0.7x	-	Arlington, VA	Government Services, IT Services and Software
2	Raptor Scientific [L Squared Capital] TransDigm	$655.0	7.3x	-	Berlin, CT	Test & Measurement
3	National Manufacturing PrecisionX [CORE Industrial]	-	-	-	Piscataway, NJ	Machined & Cast Parts
4	M1 Support Services Cererbus Capital	-	-	-	Denton, TX	Government Services, IT Services and Software
5	Apogee Engineering Bernhard Capital	-	-	-	Colorado Springs, CO	Government Services, IT Services and Software
6	Hypersonic and Test Systems businesses of Calspan [TransDigm] Cererbus Capital	-	-	-	St. Paul, MN	Test & Measurement

No.	Target Descriptions
1	Allegient Defense is a provider of technically-oriented services—from program management to systems integration and engineering to the private sectors and the U.S. federal government. The Company's core capabilities include unmanned air systems (UAS), autonomous unmanned systems teaming and collaboration (AUSTC), directed energy (DE), C4ISR, IT, and science & technology (S&T).
2	Raptor Scientific is a provider of engineering, testing and measurement services, including the design and manufacture of mass properties and radar cross section measurement instruments. Applications of the Company's products include weapons systems, commercial aviation & avionics, military aviation & avionics, and space & satellite systems.
3	National Manufacturing is a provider of precision deep and shallow drawn enclosures and metal components, high-speed CNC milling and turning, and wire EDM and sinker capabilities to private sector and U.S. federal government aerospace & defense, electronics and industrial markets. The Company has numerous value-added finishing operations, including plating, anodizing, painting, powder coating, welding, and riveting.
4	CyberSheath Services offers managed security services to help defense contractors navigate information technology, governance, and cybersecurity challenges and achieve compliance and operational security.
5	Apogee Engineering is a provider of engineering and technology solutions to the private sector and U.S. federal government defense and environmental markets. The Company has four mission portfolios which include adaptive acquisition, digital transformation, mission operations, and science & technology. The Company also provides advisory and assistance services (A&AS).
6	The Hypersonics business of Calspan contributes to the advancement of hypersonic system development and testing. The Test Systems business of Calspan is a provider of testing and technology development services, solutions, and systems for the aerospace, defense, and automotive industries.