A&D Weekly News & Transactions - Week 46

Industry Headline News

The U.S. Navy is developing its F/A-XX 6th-generation fighter independently from the Air Force's NGAD program to ensure affordability, versatility, and operational independence
Nov. 16, 2024 - Designed to replace the F/A-18E/F and complement the F-35C, the F/A-XX will emphasize multirole capabilities, long-range strikes, and fleet defense while integrating manned-unmanned teaming. (The Aviationist)

The UK government announced a £975M investment over 5 years to boost the aerospace industry, ATI Programme in hubs like Broughton, Filton, and Derby
Nov. 15, 2024 - This funding, part of the Industrial Strategy, aims to support cutting-edge innovation, create jobs, and align with Net Zero goals while cementing the UK’s global leadership in aerospace. Businesses can bid for a share starting January, with additional £49 million earmarked for projects in Wales, a key aerospace hub. (Open Access Government)

Boeing is initiating a 10% workforce reduction, aiming to streamline operations and recover from recent setbacks, including production disruptions and labor disputes
Nov. 13, 2024 - However, with Seattle’s competitive aerospace job market and high demand from companies like SpaceX and Amazon’s Project Kuiper, Boeing risks losing skilled workers to rivals. As Boeing balances immediate efficiency with future staffing needs, it faces challenges in maintaining workforce morale and retaining institutional knowledge critical for long-term recovery. (Bloomberg)

Firefly Aerospace raised $175M in a Series D round led by RPM Ventures, boosting its valuation to over $2b to support production and expand its responsive space capabilities
Nov. 12, 2024 - This funding will accelerate Alpha launch vehicle production, advance Elytra spacecraft, and support new vehicle development. The company has secured substantial launch contracts, including with NASA and Lockheed Martin, and aims to position itself as a leader in responsive space, despite recent leadership changes. (Space News)

JSW Defence and Shield AI have partnered to manufacture V-BAT Unmanned Aerial Systems in India, investing $90 million to establish a local supply chain and manufacturing hub
Nov. 12, 2024 - The V-BAT, a versatile VTOL intelligence and surveillance system, will support India's defense needs and function as a global production center. This collaboration aims to strengthen India's defense technology capabilities and enhance the Indo-U.S. strategic defense partnership. (PR Newswire)

Elliott Investment Management has acquired a $5B stake in Honeywell and is urging the company to split its automation and aerospace units to simplify operations
Nov. 12, 2024 - Elliott argues that separating these units could bring operational improvements and higher returns, following the example of other conglomerates that have successfully split. Honeywell has responded, stating it values investor feedback and is focused on sustainable growth and capital optimization. (AP News)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Testek [Odyssey Investment] Branford Castle	-	-	-	Wixom, MI	Test & Measurement
2	Pragmatics Integral Federal	-	-	-	Reston, VA	Government Services, IT Services and Software
3	Airgroup America Aero Accessories & Repair [ATL Partners]	-	-	-	Cranberry Township, PA	Distribution
4	Softrams Tria Federal [Sagewind Capital]	-	-	-	Leesburg, VA	Government Services, IT Services and Software
5	Maritime Business of Spire [Spire] Kpier	$233.5	5.6x	-	Cambridge, Canada	Navy/Maritime
6	CoreAVI Lynx Software [OceanSound Partners]	-	-	-	Tampa, FL	Government Services, IT Services and Software
7	AirBorn Molex [Koch Industries]	-	-	-	Georgetown, TX	Connectors
8	Diamond Antenna & Microwave Artemis Capital	-	-	-	Littleton, MA	Defense Electronics
9	MacGregor [Cargotec] Triton Investment	$506.0	0.6x	9.2x	Gothenburg, Sweden	Navy/Maritime
10	Precision Rolled Strip Operations of ATI [ATI] Ulbrich	-	-	-	Bedford, MA	Machined & Cast Parts
11	GRP Alliance Tiderock Companies	-	-	-	London, United Kingdom	Composites
12	ASIC Business of Dolphin Design [Soitec] NanoXplore	-	-	-	Bernin, France	Defense Electronics

No.	Target Descriptions
1	Testek is a designer, manufacturer, supporter and servicer of custom test equipment for private sector and U.S. federal government aerospace and defense markets. The company's TS1650R and CATE-Nx series provide certified correct testing of a wide range of aircraft avionics and control components.
2	Pragmatics is a provider of technical and professional services to private sector and U.S. federal government defense, financial, healthcare, and homeland security markets. The company's capabilities include IT service management, cybersecurity, systems engineering, agile software engineering, agile business intelligence & analytics, program management, audiovisual & networking, and DevSecOps in the Cloud.
3	Aigroup America is a stocking distributor of aerospace replacement parts, specializing in high precision bearings for private sector and U.S. federal government aerospace and defense markets. The company's customers include FAA repair stations, airlines, commercial customers and the US Military.
4	Softrams is a provider of human-centered digital services and system modernization for U.S. federal government aerospace, defense, and healthcare markets. The company's Bulwark organizational asset and vulnerability management tool generates security reports, manages API keys, seamlessly integrates with Jira or email for automated messaging.
5	Spire's Maritime business provides global maritime vessel data for ship tracking and maritime situational awareness solutions. The business leverages advanced microsatellite technology to deliver monitoring solutions characterized by high performance, reliability, security, and simplicity.
6	CoreAVI provides software and components that enable the deployment of graphics processors into the safety-critical systems of avionics platforms, ground control stations, land vehicles, naval vessels, automotive, medical and industrial systems. CoreAVI's pre-integrated products reduce project risk and time to market and are designed for the highest levels of safety certification.
7	AirBorn manufactures connectors, assemblies, and embedded systems for original equipment manufacturers worldwide. The company also provides solution engineering, and lab testing and qual services to the commerical aerospace, defense, industrial, and space markets.
8	Diamond Antenna & Microwave develops and manufactures radio-frequency (RF) rotary joints and rotating subsystems for private sector and U.S. federal government aerospace, defense, land systems, naval, and space exploration markets. The company employs an in-house staff of electrical and mechanical engineers, precision machinists, assemblers and RF test experts to support prototype and production manufacturing.
9	MacGregor is a provider of maritime cargo handling and original equipment manufacturing solutions. The company employs approximately 1,800 people across 30 countries and is providing integrated cargo and load handling solutions and services designed to perform at sea for the maritime transportation and offshore industries.
10	ATI’s precision-rolled strip operations specialize in precision rerolling capabilities, particularly in light-gauge, wide-width nickel alloys, titanium, and specialty stainless steel. The operations primarily serve the aerospace and defense markets.
11	GRP Alliance was formed for the specific purpose of acquiring the assets of MTAG Composites, who engages in the manufacturing of phenolic, epoxy, and polyester glass fibre and carbon fibre reinforced plastic mouldings for customers in rail, aerospace, marine, automotive, leisure, and construction.
12	The ASIC Business of Dolphin Design specializes in integrated circuit design. The company is known for its comprehensive range of chip design services, from concept to prototype delivery.