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A&D Weekly News & Transactions - Week 29
Industry Headline News
The Farnborough Airshow, attracting 1,500 exhibitors and 80,000 trade visitors, showcases a shift in focus from competitive bragging to pragmatic advancements in aerospace and defense
July 21, 2024 - Notable absences of Russian exhibitors and a spotlight on sustainability reflect broader geopolitical and environmental concerns. Despite a smaller scale compared to the Paris Airshow, Farnborough remains a key event highlighting innovations in aviation, including eVTOL aircraft and hydrogen-powered propulsion. (AIN)
July 21, 2024 - Notable absences of Russian exhibitors and a spotlight on sustainability reflect broader geopolitical and environmental concerns. Despite a smaller scale compared to the Paris Airshow, Farnborough remains a key event highlighting innovations in aviation, including eVTOL aircraft and hydrogen-powered propulsion. (AIN)
The U.S. Air Force has reached a provisional deal with Boeing to supply E-7 Wedgetail aircraft, marking Boeing's first major contract win since its recent guilty plea over 737 MAX crashes
July 20, 2024 - Despite concerns over Boeing's internal issues potentially affecting its defense contracts, the Air Force is confident that the agreement will proceed smoothly. A formal contract is expected in August, aimed at replacing the aging E-3 Sentry aircraft. (Reuters)
July 20, 2024 - Despite concerns over Boeing's internal issues potentially affecting its defense contracts, the Air Force is confident that the agreement will proceed smoothly. A formal contract is expected in August, aimed at replacing the aging E-3 Sentry aircraft. (Reuters)
Airbus and Thales are exploring a merger of their satellite operations, with Leonardo also involved through the Space Alliance’s joint ventures.
July 17, 2024 - This potential deal, aimed at enhancing Europe’s strategic independence in space, faces significant regulatory and political hurdles. The merger seeks to address financial challenges from declining demand for large satellites and rising competition from smaller, cheaper alternatives like SpaceX's Starlink. (Flight Plan)
Boeing's Seattle factory workers will vote on a strike mandate, seeking a 40% raise in their first full negotiation with the company in 16 years
July 17, 2024 - This comes amid Boeing's financial struggles, including competition from Airbus and legal issues related to 737 MAX crashes. The union, representing 30,000 workers, aims to empower their negotiating committee and is prepared to strike if necessary. (Reuters)
July 17, 2024 - This comes amid Boeing's financial struggles, including competition from Airbus and legal issues related to 737 MAX crashes. The union, representing 30,000 workers, aims to empower their negotiating committee and is prepared to strike if necessary. (Reuters)
SpaceX CEO Elon Musk plans to move the company's headquarters from Hawthorne, California, to Starbase, Texas
July 16, 2024 - Musk criticized the law and other California regulations for driving families and companies out of the state. Additionally, Musk's social media platform X will relocate to Austin, Texas, while it remains unclear if SpaceX will move its manufacturing operations from Hawthorne. (Aviation Week)
July 16, 2024 - Musk criticized the law and other California regulations for driving families and companies out of the state. Additionally, Musk's social media platform X will relocate to Austin, Texas, while it remains unclear if SpaceX will move its manufacturing operations from Hawthorne. (Aviation Week)
Emirates has purchased five Boeing 777-200LR freighters for $1 billion to expand its cargo fleet, with deliveries set for late 2024 to early 2025
July 16, 2024 - This acquisition responds to rising air freight demand and includes converting part of their current 777 fleet into freighters. The 777 Freighter boasts a range of 9,200 kilometers and a capacity of 102 metric tons, making it the market's leading twin-engine cargo jet. (Newsweek)
July 16, 2024 - This acquisition responds to rising air freight demand and includes converting part of their current 777 fleet into freighters. The 777 Freighter boasts a range of 9,200 kilometers and a capacity of 102 metric tons, making it the market's leading twin-engine cargo jet. (Newsweek)
Boeing has confirmed a purchase order from Aviation Capital Group (ACG) for 35 Boeing 737 MAX aircraft, split between 16 MAX 8 and 19 MAX 10
July 15, 2024 - This order boosts Boeing's commercial efforts, particularly for the 737 MAX program, despite the aircraft's challenging history. ACG's CEO emphasized the strategic value and commitment to modern, fuel-efficient aircraft, highlighting ACG’s ongoing support for their airline customers globally. (Simple Flying)
July 15, 2024 - This order boosts Boeing's commercial efforts, particularly for the 737 MAX program, despite the aircraft's challenging history. ACG's CEO emphasized the strategic value and commitment to modern, fuel-efficient aircraft, highlighting ACG’s ongoing support for their airline customers globally. (Simple Flying)
Airbus will freeze hiring and cut costs to compete with cheaper Chinese airliners from Comac, which is backed by the Chinese state and has nearly 1,000 orders for its C919
July 15, 2024 - Facing production bottlenecks and a six-year backlog, Airbus aims to boost productivity and shift workers to critical areas. The C919 may take years to gain European and US regulatory approval, delaying its potential threat to Airbus and Boeing. (Yahoo! Finance)
July 15, 2024 - Facing production bottlenecks and a six-year backlog, Airbus aims to boost productivity and shift workers to critical areas. The C919 may take years to gain European and US regulatory approval, delaying its potential threat to Airbus and Boeing. (Yahoo! Finance)
Weekly Transaction Review
No. | Parties Involved | Transaction Metrics | Location | Segment | ||
Target [Parent] Acquirer [Parent] |
Price ($M) |
Price/ Revenue |
Price/ EBITDA |
Target | Target | |
1 | LinQuest [Madison Dearborn] KBR |
$737.0 | 1.4x | 11.0x | Los Angeles, CA | Government Services, IT Services and Software |
2 | Knight Optical Torrent Photonics [DBHCAP] |
$2,100.0 | 1.8x | 7.0x | West Malling, United Kingdom | Machined & Cast Parts |
3 | Outdoor Wireless Networks & Distributed Antenna Systems Business [CommScope] Amphenol |
- | - | - | Ashburn, VA | Defense Electronics |
4 | Koss Aerospace DCM Group [Thrust Capital] |
- | - | - | Mississauga, Canada | Machined & Cast Parts |
5 | Brampton Processing DCM Group [Thrust Capital] |
- | - | - | Brampton, Canada | Machined & Cast Parts |
No. | Target Descriptions |
1 | LinQuest is a provider of engineering, acquisition and operations services for US government communications, command and control, and information systems. The company focuses on the development, integration, deployment, and operation of state of the art command and control and information systems that deliver critical network centric solutions to the warfighter. |
2 | Knight Optical is a manufacturer and provider of custom and catalog scientific optical components and sub-assemblies for private sector, international, and U.S. federal government scientific, defense, medical, pharmaceutical and optoelectronics markets. |
3 | The Outdoor Wireless Networks & Distributed Antenna Systems Businesses provide base station antennas, radio frequency (RF) filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel, accessories and contains CommScope's wireless spectrum management business, Comsearch. |
4 | Koss Aerospace is a Tier-1 manufacturer of structural aircraft components and assemblies for private sector, U.S. federal government, and international government aerospace and defense markets. The company is a vertically integrated manufacturer with in-house capabilities for machining, processing and assembly resulting in a seamless integration of functions. |
5 | Brampton Processing offers a range of value-added metal processing services including cadmium plating, chrome plating, anodizing, painting, finishing services, and more. It operates three facilities in the Greater Toronto Area and is ISO 9001:2015 certified. |
Selected Janes Capital Partners A&D Experience