A&D Weekly News & Transactions - Week 40

Industry Headline News

Apollo Global Management is in negotiations to acquire aerospace parts manufacturer Barnes Group, which has a market value of around $2 billion
Oct. 4, 2024 - Shares of Barnes have increased significantly since the start of the year, but the company reported a net loss of $46.8 million in its latest quarter. If negotiations with Apollo succeed, a deal could be finalized in the coming weeks, although other potential buyers may still emerge. (Reuters)

Toyota has invested $500M in air taxi startup Joby Aviation, increasing its total investment to $894M and solidifying its commitment to the eVTOL industry
Oct. 2, 2024 - This collaboration aims to advance the manufacturing of electric vertical takeoff and landing aircraft, with Joby planning to reach a production capacity of one eVTOL per month by the end of 2024 and launch a public air taxi service. (Axios)

Boeing has secured a $6.9B contract from the U.S. Department of Defense to produce Small Diameter Bombs, enhancing precision strike capabilities for allies
Oct. 1, 2024 - This contract not only boosts the military arsenals of these nations but also fosters improved interoperability with NATO. The SDBs are designed for high precision in targeting while minimizing collateral damage, making them effective in various weather conditions. (Airforce Technology)

The U.S. Department of Defense has awarded Pratt & Whitney a $1.3B contract to upgrade the F135 engines used in military fighter jets
Oct. 1, 2024 - The contract will modernize the engines for the U.S. Air Force, Marine Corps, Navy, and international partners, with work largely based in East Hartford. This solidifies Pratt & Whitney's role as the sole engine provider for the F-35 program, enhancing the company’s economic and employment impact. (CT Mirror)

StandardAero, a U.S.-based aircraft maintenance services provider backed by Carlyle, raised $1.44B through its IPO by pricing shares at $24, above the expected range of $20-$23
Oct. 1, 2024 - The IPO values the company at around $8 billion, with shares expected to start trading on the NYSE under the ticker "SARO." StandardAero and its investors sold 60 million shares, marking the largest U.S. IPO since June. (Reuters)

Boeing is considering raising $10B through a share issue to bolster cash reserves depleted by an ongoing machinists' strike
Sept. 30, 2024 - While investors expect this move, it may not happen until the strike ends, and Boeing evaluates the financial impact. The company is prioritizing preserving its investment-grade credit rating, which is at risk due to the strike and could impact its $45 billion debt. (MarketWatch)

Lockheed Martin has secured $3.56B in contracts for the production of JASSM and LRASM missiles for the U.S. military and allied nations
Sept. 30, 2024 - The company also revealed plans for the JASSM-XR, an extended-range variant potentially doubling the missile's range to 1,000 miles, with testing projected in 2026. This new variant aims to enhance U.S. strike capabilities, reduce aircraft exposure, and leverage existing production lines for cost-efficient development. (Air & Space Forces)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Icon Aerospace [Mill Hill Capital] Precision Aviation Group [GenNx360 Capital]	-	-	-	Indian Trail, NC	MRO & Logistics
2	Tag Aero [Mill Hill Capital] Precision Aviation Group [GenNx360 Capital]	-	-	-	Winter Garden, FL	MRO & Logistics
3	ElctrochemSolutions [Integer Holdings] Ultralife	$50.0	1.5x	-	Raynham, MA	Defense Electronics
4	Satcom Direct Gogo	$636.2	1.3x	7.7x	Melbourne, FL	Satellite, Satellite Services & Space Systems
5	Network Perception Dragos	-	-	-	Chicago, IL	Cybersecurity, Intelligence Services and Homeland Defense
6	Applied Insight [Acacia Group] CACI International	-	-	-	Reston, VA	Government Services, IT Services and Software
7	Veth Research Associates AEVEX Aerospace [Madison Dearborn]	-	-	-	Niceville, FL	Sensors & C4ISR
8	Ventera Cadmus Group [CI Capital]	-	-	-	Reston, VA	Government Services, IT Services and Software
9	ISS Inspection Services [Wynnchurch Capital] Element Materials Technology Group [Temasek Holdings]	-	-	-	Heaters, WV	MRO & Logistics
10	Display Generator & Flight control Computer Product Line Exclusive License [Honeywell] IS&S	-	-	-	Charlotte, NV	Controls & Systems

No.	Target Descriptions
1	Icon Aerospace is an FAA/CAA/EASA-approved repair station specializing in the repair and overhaul of avionics, instruments, radios, and accessories. The company provides its MRO services on multiple aircraft platforms including Boeing, Bombardier, Airbus, and Embraer. Icon has approximately 150 employees.
2	Tag Aero is an FAA/CAA/EASA-approved repair station focused on auxiliary power units (APUs). TAG provides a vertically integrated suite of services including repair and overhaul, outright sales, leasing and exchanges for 131, 331, and 85 Series APUs. Tag Aero has approximately 60 employees.
3	Electrochem Solutions is a designer and manufacturer of primary lithium metal and ultracapacitor cells and custom battery packs for the energy, military and various environmental, industrial and utility end markets.
4	Satcom Direct is a provider of satellite voice and broadband data solutions for flight deck and cabin communications serving business and general aviation. The company is a Inmarsat Distribution Partner, Iridium Service Partner, and ViaSat Yonder's preferred reseller, supporting more than ninety percent of all corporate flight departments worldwide.
5	Network Perception develops OT network cybersecurity audit and compliance solutions for private sector and U.S. federal government defense markets. Its flagship product, NP-View, provides a lightweight, non-invasive network visualization platform for OT networks that enables organizations to rapidly identify network misconfigurations, assess risk, and ensure compliance.
6	Applied Insight is a provider of systems integration, professional IT services, e-business solutions, web hosting/design, network architecture, data mining, data warehousing and telecommunications to private sector and U.S. federal government civilian, defense, and homeland security markets.
7	VRA is a developer and manufacturer of a proprietary sensor fusion engine which powers real-time autonomous decision-making using deep neural networks and machine learning for private sector and U.S. federal government aerospace and defense markets. VRA's LYNX vision-based navigation (VBN) system allows for navigation independent of external GPS signals.
8	Ventera is a technology consulting firm which leverages agile, human-centered design, DevSecOps, and cutting-edge technologies to develop transformative digital platforms for private sector and U.S. federal government government healthcare, finance, media, and communications markets.
9	ISS Inspection Services is comprised of four customer-facing brands: NIC Inspection Services, PTI Industries (both accredited by the Federal Aviation Administration), PRO Inspection Services and CTS Inspection Services. Together, these entities serve almost 1,000 customers operating in the aerospace, space, defense, and energy industries and provide advanced capabilities in NDT, inspection, and special process services such as precision cleaning and coatings.
10	The deal includes an exclusive license to manufacture, upgrade, and repair the product line. The agreement also grants IS&S exclusive intellectual property rights and includes the transfer of existing inventory necessary for continued manufacturing and support of the products.