A&D Weekly News & Transactions - Week 34

Industry Headline News

Boeing's new CEO, Kelly Ortberg, must decide the fate of the Starliner program after NASA chose SpaceX to safely bring astronauts home
Aug. 25, 2024 - This decision highlights the ongoing issues with Starliner, including safety concerns and cost overruns. Boeing now faces a tough choice between continuing its space ambitions and managing strained finances. (Bloomberg)

Sierra Nevada Corporation has secured a $991M 12-year IDIQ contract from the Army to convert Bombardier Global 6500 jets into advanced spy planes under the HADES program
Aug. 22, 2024 - Surpassing competitors like L3Harris and Leidos, this initiative aims to enhance airborne intelligence, surveillance, and reconnaissance capabilities, replacing older turboprop aircraft. (Breaking Defense)

Lufthansa Technik has acquired an 80% stake in Tulsa-based ETP Thermal Dynamics to expand its footprint in the Americas and strengthen its supply chain security
Aug. 22, 2024 - ETP specializes in MRO services for heat exchangers and other aircraft components, with FAA and EASA approvals. (Aviation Week)

In 2023, Boeing reclaimed the top spot in aerospace revenue, surpassing Airbus with $77.8B, though Airbus led in commercial sales
Aug. 22, 2024 - Despite recent challenges and a new CEO, Boeing outperformed rivals and maintained its lead, while the overall recovery in commercial aviation is evident. The top aerospace companies list saw increased revenue among billion-dollar earners and notable shifts, including Rostec's removal due to data issues. (Simple Flying)

Concerns are rising over China's advancing space maneuvering capabilities
Aug. 21, 2024 - Recent maneuvers by Chinese spacecraft demonstrate growing proficiency in counterspace operations, such as co-orbital anti-satellite techniques. Observations from ExoAnalytic Solutions reveal China's increasing use of aggressive and complex maneuvers, signaling a deliberate effort to challenge U.S. space dominance. (Aviation Week)

VSE Corporation has appointed Adam Cohn as CFO and Garry Snow as Chief Growth Officer, both bringing extensive experience in aerospace and financial management
Aug. 20, 2024 - Cohn, formerly with Triumph Group, will lead VSE's financial strategies, while Snow will focus on accelerating organic growth. These appointments are part of VSE's broader strategy to enhance market presence and shareholder value. (Investing)

The U.S. State Department has approved South Korea's potential purchase of up to 36 Apache AH-64E helicopters for $3.5B
Aug. 19, 2024 - These sales are not final, and quantities may change during negotiations, but they align with U.S. foreign policy goals to strengthen allies. The Apache deal highlights the focus on enhancing South Korea's defense capabilities in the Indo-Pacific region. (Breaking Defense)

Boeing has paused flight tests of its 777X aircraft after discovering damage to a structure in one of the jets during maintenance
Aug. 19, 2024 - The issue has led Boeing to ground all four test aircraft, potentially affecting the already delayed 2025 delivery schedule. The company is addressing the problem and has informed the FAA and customers, but the impact on certification and deliveries remains uncertain. (CNBC)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Criteria Labs Dover	-	-	-	Austin, TX	Defense Electronics
2	J-Mark Connectors Mobix Labs	-	-	-	Wichita, KS	Connectors
3	Capewell Aerial Systems [Argosy] HEICO	-	-	-	South Windsor, CT	Specialty Defense Systems and Services
4	Qualis Bluestone Investment	-	-	-	Huntsville, AL	Government Services, IT Services and Software
5	ETP Thermal Dynamics [Campbell Holdings] Lufthansa Technik [Lufthansa]	-	-	-	Tulsa, OK	MRO Logistics

No.	Target Descriptions
1	Criteria Labs designs and manufactures RF device and microelectronic engineering solutions for high-reliability applications in private sector and U.S. federal government aerospace markets. The company's products include gain blocks, GaN power amplifiers, MCMs & hybrids, and other RF devices.
2	J-Mark Connectors provides hardware and EMI interconnect solutions. The company works to meet demanding filtering, grounding, and transient suppression requirements in the aerospace, military, and medical sectors.
3	Capewell Aerial Systems designs and manufactures highly advanced aerial delivery systems, parachute hardware and emergency descent devices. The company's aerial delivery systems are used in military transport aircraft across the world.
4	Qualis is a provider of advanced modeling, simulation, and testing services for private sector and U.S. federal government aerospace and defense markets. The company's solutions support the development of next-generation missile defense and resilient satellite communications systems and enable the development of navigation in GPS-denied and contested environments.
5	Qualis is a provider of advanced modeling, simulation, and testing services for private sector and U.S. federal government aerospace and defense markets. The company's solutions support the development of next-generation missile defense and resilient satellite communications systems and enable the development of navigation in GPS-denied and contested environments.