A&D Weekly News & Transactions - Week 4

Industry Headline News

The UK awarded Rolls-Royce an $11B, 8-year contract to design, build, and support nuclear reactors for its submarine fleet
Jan. 24, 2025 - The deal, expected to save £400 million and create or safeguard 5,000 jobs, highlights defense's role in economic growth while aligning with plans to increase UK defense spending amid rising tensions with Russia. (Reuters)

Boeing is considering selling its Jeppesen navigation unit, attracting interest from aviation suppliers like RTX and Honeywell, as well as private equity firms
Jan. 23, 2025 - The divestment is part of Boeing's effort to reduce its $58 billion debt load following recent production and financial challenges. While deliberations continue, the sale aligns with CEO Kelly Ortberg's broader portfolio review strategy. (Yahoo! Finance)

Boeing expects a $4 billion loss for Q4 2024, driven by a labor strike, safety crises, and additional charges on key programs like the 777X and 767
Jan. 23, 2025 - The company has not posted an annual profit since 2018 and reported $3.5 billion in cash burn, compounded by revenue falling below expectations. Despite near-term challenges, Boeing aims to stabilize its business through a new labor agreement and a successful capital raise. (CNBC)

GE Aerospace expects stronger profits in 2025, fueled by improved supply chain performance and increased production of LEAP jet engines, which power Airbus and Boeing aircraft
Jan. 23, 2025 - The company's fourth-quarter earnings beat estimates, driving a 7% stock surge, and it plans to boost share buybacks and dividends significantly. CEO Larry Culp highlighted progress in overcoming supply constraints, with suppliers now delivering over 90% of committed volumes. (Yahoo! Finance)

RTX’s Pratt & Whitney launched a ETIC in the Netherlands, focusing on sustainable aviation technologies, including propulsion efficiency and emissions reduction
Jan. 22, 2025 - Co-located with RTX’s Collins Aerospace Hub, the ETIC will foster collaboration with Dutch and European aerospace industries, academia, and government. The center is set to open in mid-2025, initially employing a core team of engineers and scientists. (Aero Mag)

Boeing has ended production of its best-selling 777-300ER widebody aircraft, shifting focus to the 777X, marking the end of an era for the revolutionary long-haul jet
Jan. 22, 2025 - Meanwhile, Boeing is seeking FAA exemptions for the 737 Max 7 and Max 10 to meet stricter stall-management yaw damper safety standards, aiming to expedite certification and implement safety enhancements across the fleet. These developments highlight significant shifts and ongoing challenges in Boeing's production and certification strategies. (Aviation A2Z)

L3Harris Technologies has appointed CFO Ken Bedingfield as President of Aerojet Rocketdyne, succeeding Ross Niebergall, effective February 3, 2025
Jan. 21, 2025 - The LHX NeXt transformation initiative, led by Heidi Wood, will now report directly to CEO Chris Kubasik. These leadership changes aim to enhance strategic relationships, drive enterprise transformation, and position the company for future success. (Business Wire)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Edge Autonomy [AE Industrial] Redwire	$925.0	4.2x	12.8x	San Luis Obispo, CA	Unmanned Vehicles
2	Bandy Manufacturing [JW Hill Capital] Novaria Group [KKR]	-	-	-	Burbank, CA	Machined & Cast Parts
3	Skynorth Air Northway Aviation [Westcap Management]	-	-	-	Winnipeg, Canada	MRO & Logistics
4	Accurate Grinding H2M Engineering	-	-	-	Northampton, United Kingdom	Machined & Cast Parts
5	UltraLYNX Product Line of Ultra Precision Control Systems [Advent International] INVISIO	$3.5	-	-	Cheltenham, United Kingdom	Defense Electronics
6	PAC Seating LifePort [Tower Arch Capital]	-	-	-	Palm City, FL	Aircraft Interiors
7	Macro Solutions Alpha Omega Integration	-	-	-	Washington, DC	Government Services, IT Services and Software
8	SeKon Alpha Omega Integration	-	-	-	Reston, VA	Government Services, IT Services and Software
9	Aviation Sales Premier Air	-	-	-	Dayton, OH	MRO & Logistics
10	Nordic MRO Nayak Aircraft Services	-	-	-	Stockholm, Sweden	MRO & Logistics
11	Dexcel Electronics Designs [Comcraft Kenya] Sanlayan Technologies	-	-	-	Bengaluru, India	Defense Electronics
12	BCB International Wescom Group	-	-	-	Cardiff, United Kingdom	Specialty Defense Systems and Services

No.	Target Descriptions
1	Edge Autonomy is a manufacturer in the small, fixed-wing UAV segment and develops/produces subsystems, stabilized EO/IR camera payloads and accessories for the unmanned and manned aircraft industry. The company's systems, airframes, components and subsystems are delivered to over 57 different countries
2	Bandy Manufacturing specializes in manufacturing hinge components and assemblies, machined structures and assemblies for aerospace applications. From nuclear submarines to business jets, the company supports virtually every type and class of military and commercial aircraft and aerospace vehicle and a wide range of non-aerospace applications as well.
3	Skynorth Air provides regional air transportation services, specializing in charter flights, cargo services, and aircraft management. The company focuses on delivering efficient and reliable aviation solutions in remote and underserved regions. The company serves the commercial, governmental, and industrial markets.
4	Accurate Grinding specializes in precision grinding services for industrial applications, focusing on surface grinding, cylindrical grinding, and tool sharpening. The company serves markets including aerospace, automotive, and manufacturing, ensuring high-quality finishes and tight tolerances for critical components.
5	The UltraLYNX product line consists of software-defined hubs which enable seamless integration of devices from different suppliers. The product line creates an ecosystem that provides audio, data connectivity and power, reducing the cognitive and physical burden on the warfighter.
6	PAC Seating designs and manufactures premium seating solutions for business and private aircraft, specializing in custom, ergonomic, and luxury seats. The company serves the VIP, business aviation, and retrofit markets, providing tailored solutions to meet stringent aerospace standards.
7	Macro Solutions is a provider of IT and management consulting services which aid organizations select, implement, modernize, integrate and maintain critical end-to-end business solutions in private sector and U.S. federal government aerospace, civil, and defense markets
8	SeKon is a provider of management and technology consulting solutions for private sector and U.S. federal government defense and healthcare markets. The company's services include cyber security, data analytics, digital transformation, and information integration.
9	Aviation Sales specializes in distributing aircraft parts, components, and maintenance solutions for general and commercial aviation. The company provides inventory management and logistics services, ensuring timely support for fleet operations. The company serves airlines, MRO providers, and fixed-base operators globally.
10	Nordic MRO provides aircraft maintenance, repair, and overhaul services, specializing in line and base maintenance, cabin modifications, and component repairs. The company serves commercial, business, and cargo aviation markets, ensuring reliable and efficient fleet operations.
11	Dexcel Electronics designs and develops embedded systems and electronics solutions, specializing in hardware design, software development, and system integration. The company serves industries including aerospace, defense, automotive, and telecommunications, delivering tailored technology solutions for mission-critical applications.
12	BCB International specializes in the design and manufacture of survival, protective, and medical equipment. The company provides innovative solutions for defense, marine, and outdoor industries, supporting military personnel, emergency responders, and adventurers worldwide