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A&D Weekly News & Transactions - Week 48
Industry Headline News
COMAC is a government-owned conglomerate aiming to challenge the long-standing Airbus-Boeing duopoly
Nov. 29, 2024 - COMAC has produced the regional jet ARJ21 and the narrowbody C919, with plans for the widebody C929. While the company faces numerous challenges, including supply chain issues and certification hurdles, its growing portfolio and ambitions make it a potential global player in the aviation industry, breaking the dominance of Western manufacturers. (AeroTime)
Nov. 29, 2024 - COMAC has produced the regional jet ARJ21 and the narrowbody C919, with plans for the widebody C929. While the company faces numerous challenges, including supply chain issues and certification hurdles, its growing portfolio and ambitions make it a potential global player in the aviation industry, breaking the dominance of Western manufacturers. (AeroTime)
Safran has expanded its aircraft engine production capacity with a new assembly line at its Querétaro plant in Mexico, creating 150 new jobs
Nov. 27, 2024 - The expansion, which supports the CFM LEAP engine production, strengthens Safran’s position as a key player in North America’s aerospace sector, making Mexico one of the few countries capable of managing the entire engine lifecycle. With over 34 years in Mexico, Safran now operates 18 facilities across the country, employing more than 14,000 people in the aerospace industry. (Safran)
Nov. 27, 2024 - The expansion, which supports the CFM LEAP engine production, strengthens Safran’s position as a key player in North America’s aerospace sector, making Mexico one of the few countries capable of managing the entire engine lifecycle. With over 34 years in Mexico, Safran now operates 18 facilities across the country, employing more than 14,000 people in the aerospace industry. (Safran)
Jet engine maker CFM has agreed to prioritize supplying engines to Airbus over the aftermarket, aiming to help meet its target of delivering around 770 aircraft in 2024
Nov. 27, 2024 - This decision alleviates tensions with Airbus but may disappoint airlines facing delays in engine repairs due to heightened post-pandemic demand and maintenance issues. While Airbus has expressed confidence in achieving its goals, analysts remain skeptical about whether the ramp-up in deliveries is feasible without further changes. (Yahoo! Finance)
Nov. 27, 2024 - This decision alleviates tensions with Airbus but may disappoint airlines facing delays in engine repairs due to heightened post-pandemic demand and maintenance issues. While Airbus has expressed confidence in achieving its goals, analysts remain skeptical about whether the ramp-up in deliveries is feasible without further changes. (Yahoo! Finance)
L3Harris secured a $999M contract to supply advanced, software-defined tactical radios enhancing secure communication for U.S. and allied forces over 5 years
Nov. 26, 2024 - The deal underscores L3Harris’ commitment to supporting coalition operations with real-time situational awareness. This contract follows previous significant awards, including agreements with the U.S. Navy, Marine Corps, and Special Operations Command for tactical and handheld radio systems. (The Defense Post)
Nov. 26, 2024 - The deal underscores L3Harris’ commitment to supporting coalition operations with real-time situational awareness. This contract follows previous significant awards, including agreements with the U.S. Navy, Marine Corps, and Special Operations Command for tactical and handheld radio systems. (The Defense Post)
The Department of Commerce awarded up to $59.4M under the CHIPS Act to BAE Systems and Rocket Lab to enhance U.S. semiconductor production for defense and space industries
Nov. 26, 2024 - BAE Systems will expand its microelectronics production for military aircraft and satellites, while Rocket Lab will increase its output of space-grade solar cells, critical for missile awareness and scientific missions. These investments aim to strengthen domestic chip manufacturing and national security ahead of the upcoming administration. (Breaking Defense)
Embraer is striving to establish itself as a prime contractor in the US defense market, leveraging its C-390 Millennium tactical airlifter and A-29 Super Tucano as key offerings
Nov. 26, 2024 - To achieve this, the company is exploring avenues like US-based assembly, mergers, and acquisitions, while emphasizing compliance with Buy American Act requirements to attract Pentagon buyers. This effort represents a company-wide, strategic initiative to expand Embraer's footprint in the US defense sector and align with future military procurement needs. (Breaking Defense)
Nov. 26, 2024 - To achieve this, the company is exploring avenues like US-based assembly, mergers, and acquisitions, while emphasizing compliance with Buy American Act requirements to attract Pentagon buyers. This effort represents a company-wide, strategic initiative to expand Embraer's footprint in the US defense sector and align with future military procurement needs. (Breaking Defense)
Pratt & Whitney has signed a letter of intent with Wojskowe Zaklady Lotnicze Nr. 2 S.A. to expand MRO capabilities for F100 engines in Poland
Nov. 25, 2024 - Enhancing the support for the Polish Air Force's F-16 fleet and potential F-15EX adoption. This collaboration leverages decades of local expertise and infrastructure at Pratt & Whitney Rzeszów to ensure cost-effective and reliable propulsion solutions. The initiative aims to bolster Poland's defense readiness while expanding WZL2's capabilities beyond engine repairs. (AviTrader)
Nov. 25, 2024 - Enhancing the support for the Polish Air Force's F-16 fleet and potential F-15EX adoption. This collaboration leverages decades of local expertise and infrastructure at Pratt & Whitney Rzeszów to ensure cost-effective and reliable propulsion solutions. The initiative aims to bolster Poland's defense readiness while expanding WZL2's capabilities beyond engine repairs. (AviTrader)
The U.S. Air Force awarded Boeing a $2.4B contract to build 15 additional KC-46A Pegasus refueling tankers, with work expected to conclude by June 2028
Nov. 25, 2024 - This expands Boeing's global KC-46 orders to 168, supporting the modernization of the Air Force's tanker fleet as it phases out older models and plans for a future next-generation aerial refueling system (NGAS). Boeing also secured a $1.7 billion contract from the Navy for seven P-8A Poseidon maritime patrol aircraft, raising its global Poseidon fleet to 207. (Defense News)
Nov. 25, 2024 - This expands Boeing's global KC-46 orders to 168, supporting the modernization of the Air Force's tanker fleet as it phases out older models and plans for a future next-generation aerial refueling system (NGAS). Boeing also secured a $1.7 billion contract from the Navy for seven P-8A Poseidon maritime patrol aircraft, raising its global Poseidon fleet to 207. (Defense News)
US aerospace and defense firm Sierra Nevada Corporation has launched a subsidiary, SNC AUS, in South Australia’s Lot Fourteen to focus on advanced defense technologies
Nov. 25, 2024 - The expansion strengthens South Australia’s defense industry ecosystem, aligns with the AUKUS agreement, and leverages the region’s skilled workforce and innovation hub. The move, supported by the South Australian government, further solidifies the state's reputation as a leader in defense and aerospace innovation. (Australian Aviation)
Nov. 25, 2024 - The expansion strengthens South Australia’s defense industry ecosystem, aligns with the AUKUS agreement, and leverages the region’s skilled workforce and innovation hub. The move, supported by the South Australian government, further solidifies the state's reputation as a leader in defense and aerospace innovation. (Australian Aviation)
Weekly Transaction Review
No. | Parties Involved | Transaction Metrics | Location | Segment | ||
Target [Parent] Acquirer [Parent] |
Price ($M) |
Price/ Revenue |
Price/ EBITDA |
Target | Target | |
1 | Aechelon Technology Sagewind Capital |
- | - | - | San Francisco, CA | Simulation & Training Systems |
2 | Spacecraft Components Mobix Labs |
$24.0 | 1.3x | - | North Las Vegas, NV | Connectors |
3 | Contraves Advanced Devices [Boustead Heavy Industries] Rheinmetall |
$23.8 | 1.0x | - | Malacca, Malaysia | Defense Electronics |
No. | Target Descriptions |
1 | Aechelon Technology is a provider of visual simulation image generators, associated geospecific visual and sensor databases, realistic 3D models and integration services for private sector and U.S. federal government aerospace and defense markets. The company leverages cutting-edge hardware, software technologies, machine learning and computer vision to build advanced visual solutions. |
2 | Spacecraft Components is a manufacturer of high-precision, mission-critical components for private sector and U.S. federal government aerospace, commercial, and defense markets. The company delivers electrical connector components and accessories that are vital to mission critical missile technology, submarines, naval ships, oil rigs, railcars, military and commercial jet aircraft, and many other applications. |
3 | Contraves Advanced Devices manufactures and markets electronic printed circuit board assemblies, box-built products, cabinets, and electronic modules. The company also produces and repairs electronic components and sub-assemblies of radar and defense electronics, as well as air defense and naval systems. |
Selected Janes Capital Partners A&D Experience