A&D Weekly News & Transactions - Week 6

Industry Headline News

Boeing announced it will cut about 400 positions in its Space Launch System moon rocket program due to NASA’s Artemis program revisions and cost constraints
Feb. 8, 2025 - Affected employees will receive 60-day layoff notices, though Boeing is seeking internal reassignments to minimize job losses. Artemis missions have faced delays, with Artemis 2 pushed to September 2025 and Artemis 3, the planned moon landing, now set for September 2026. (Reuters)

Airbus has postponed its plans to develop a hydrogen-powered commercial aircraft by 2035, citing slower-than-expected technological advancements, with no new timeline provided
Feb. 7, 2025 - The decision marks a setback in its efforts to pioneer hydrogen as an aviation fuel, shifting focus back to Sustainable Aviation Fuel (SAF) as the primary path to reducing emissions. While Airbus remains committed to hydrogen in the long term, Boeing remains skeptical about its near-term viability, citing safety and technical challenges. (Reuters)

Honeywell is splitting into three independent companies, separating its aerospace, automation, and advanced materials businesses
Feb. 6, 2025 - The move aims to unlock shareholder value, though analysts caution that market benefits may take time to materialize, especially as the company faces weak demand in its industrial automation sector and a disappointing 2025 profit forecast. Despite a nearly 4% drop in shares after the announcement, Honeywell expects to complete the separation by late 2026 in a tax-free process for shareholders. (Reuters)

The European Commission has allocated over €1B under the EDF to advance military innovations
Feb. 5, 2025 - With an overall budget of €7.3 billion until 2027, the EDF promotes cross-border defense projects, enhancing interoperability and technological advancements while supporting start-ups and SMEs. This year, Ukrainian entities can apply for acceleration support, marking a new development in the fund’s collaborative efforts. (The Defense Post)

Standex International has acquired McStarlite Co., a manufacturer of complex sheet metal components for aerospace and defense
Feb. 5, 2025 - McStarlite’s four facilities in California will join ETG alongside Spincraft locations in the U.S. and U.K., enhancing technical expertise and hybrid forming solutions. This acquisition strengthens Standex ETG’s technology portfolio and provides new cost-effective manufacturing opportunities for customers. (Standex)

Teledyne completed a $710M acquisition of aerospace and defense electronics businesses from Excelitas, Qioptiq’s optical systems in the UK and advanced electronics in the U.S.
Feb. 3, 2025 - These businesses provide high-tech optics, night vision systems, and defense electronics, now operating under Teledyne Qioptiq within Teledyne’s Aerospace and Defense Electronics segment. Teledyne leaders see the acquisition as a strategic expansion, enhancing their technology portfolio and customer reach. (Businesswire)

The U.S. State Department has approved Japan’s $900M request to purchase 150 SM-6 Block I missiles and related equipment, with RTX as the principal contractor
Feb. 3, 2025 - This sale will enhance Japan’s maritime defense capabilities, integrating the missiles with its AEGIS-equipped surface combatants while strengthening U.S.-Japan relations and regional security. The deal also includes logistical, engineering, and training support to bolster Japan’s role in integrated air missile defense in the Indo-Pacific. (GovCon Wire)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Triumph Group Warburg Pincus & Berkshire Partners	$3,000.0	2.5x	19.1x	Radnor, PA	Components & Subsystems
2	ACT Aerospace The Thermal Group [Berhman Capital]	-	-	-	Gunnison, UT	Composites
3	Arotech [Greenbriar Equity] Albion River	-	-	-	Ann Arbor, MI	Simulation & Training Systems
4	Statheros Peerless Technologies	-	-	-	Knoxville, TN	Engineering and Project Management
5	Millennium International HEICO	-	-	-	Lees Summit, MO	MRO & Logistics
6	Govplace Digital Capital	-	-	-	Bethesda, MD	Government Services, IT Services and Software
7	McStarlite Standex	$56.5	1.7x	-	Harbor City, CA	Machined & Cast Parts
8	Episys Science Applied Intuition	-	-	-	Poway, CA	Unmanned Vehicles
9	Converge Technology Solutions H.I.G. Capital	$909.5	0.3x	5.4x	Toronto, Canada	Government Services, IT Services and Software

No.	Target Descriptions
1	Triumph is a provider of design, production and service for aircraft systems and components including actuation, fuel systems, hydraulics, geared solutions, MRO services for private sector and U.S. federal government aerospace and defense markets.
2	ACT Aerospace is a manufacturer of advanced composite structures for private sector and U.S. federal government aerospace and defense markets. The company also provides complementary services such as design, testing, inspection and engineering.
3	Arotech is a provider of training and simulation, portable power systems, and advanced electronics services to private sector and U.S. federal government aerospace, civil, and defense markets.
4	Statheros is a provider of full-cycle engineering and management services supporting the design, development, and delivery of defense and intelligence mission systems in private sector and U.S. federal government aerospace and defense markets. The company's capabilities include embedded RF system design and development, microservices frameworks and applications, distributed, high-performance software.
5	Millennium International is an FAA and EASA approved Part 145 Repair Station specializing in the repair and support of new generation and legacy avionics systems and components. The company provides a wide range of services on glass cockpit (LCD & CRT) displays, TCAS, WX radar, Nav/Comm, and more. The company serves military, commercial, and corporate aviation markets worldwide.
6	Govplace is a developer of enterprise IT solutions for private sector and U.S. federal government civil, defense, emergency management, homeland security, and intelligence markets. Govplace leverages technical expertise, public sector experience, government contracts, project methodology and a performance-based contracting model to deliver effective IT solutions for government and education.
7	McStarlite Co. is a premier sheet metal forming specialist, manufacturing large and complex sheet metal aerospace components. It designs and manufactures cold deep draw and bulge-formed aviation components, including segmented and single-piece lipskins, nozzles, complex sheet metal assemblies, and tooling to support production hardware.
8	EpiSci develops next-generation autonomous technologies for defense, aerospace, and commercial applications for private sector and U.S. federal government defense markets. EpiSci's flagship product, SwarmSense, is a scalable and customizable groundbreaking software + hardware system that uses AI, machine vision and mesh networking to accomplish a wide range of dynamic missions that may not be possible for a single drone.
9	Converge is a provider of value-added IT solutions for private sector, international government, and U.S. federal government markets. The company's capabilities include advanced analytics, artificial intelligence, app modernization, cloud platforms, cybersecurity, digital infrastructure and workplace, managed services, and talent services.