A&D Weekly News & Transactions - Week 7

Industry Headline News

Eviation Aircraft in Washington has laid off most of its staff and paused development of its electric-powered Alice airplane to focus on securing long-term partnerships for its future
Feb. 14, 2025 - Despite having completed a test flight in 2022, the company faces financial challenges and is seeking further funding to continue its electric aviation efforts. The Alice plane, which has over 600 orders, is designed to carry nine passengers for regional flights, but its timeline for commercial service may depend on finding the right strategic partners. (GeekWire)

Northrop Grumman secured nearly $1.4B in contracts to deploy advanced air and missile defense systems in Poland, enhancing its IBCS for improved coordination and security
Feb. 14, 2025 - The contracts, including $481 million for software development and $899.6 million for a unified command and control system, aim to strengthen Poland’s defenses amid rising tensions from the Ukraine-Russia war. These developments come as peace talks remain uncertain, with concerns about potential implications for Russia’s stance. (The Washington Times)

Blue Origin is laying off 10% of its workforce—over 1,000 employees—to streamline operations and focus on scaling manufacturing and launch frequency, citing excessive bureaucracy
Feb. 13, 2025 - The layoffs, delivered in a brief virtual meeting, shocked employees, who fear critical knowledge loss and increased pressure on remaining staff. Despite recent successes, including the long-awaited New Glenn launch, the company is restructuring under CEO Dave Limp to compete more aggressively with SpaceX. (Seattle Times)

K2 Space has raised $110M in Series B funding to scale production of its cost-effective, high-capacity “Mega” satellites, bringing its total funding to $180M
Feb. 13, 2025 - As launch costs decline, the company is betting on a shift toward larger satellites and has secured a $60 million agreement with the U.S. Space Force for its 2026 Gravitas mission. To support its growth, K2 Space is opening a 180,000-square-foot factory in California and has hired former defense official John Plumb as head of strategy. (Space News)

Japan’s Self-Defense Forces have ordered 17 CH-47 Block II Chinook helicopters from Boeing to modernize their fleet, with co-production by Kawasaki Heavy Industries
Feb. 13, 2025 - The advanced helicopters feature improved digital flight controls, enhanced fuel tanks, and a reinforced airframe, boosting stability, safety, and efficiency. This acquisition positions Japan alongside the US, UK, and Germany in adopting the next-generation heavy-lift Chinook for expanded operational capabilities. (AeroTime)

Héroux-Devtek has been acquired by an affiliate of Platinum Equity for $32.50 per share in cash, with senior management rolling over part of their shares into the parent company
Feb. 11, 2025 - Following the acquisition, Héroux-Devtek's shares will be delisted from the Toronto Stock Exchange by February 13, 2025, and the company will cease to be a reporting issuer in Canada. An early warning report regarding the acquisition will be filed on SEDAR+. (Yahoo! Finance)

Spirit AeroSystems has announced substantial doubt about its ability to continue operations due to severe liquidity issues, with cash reserves dropping from $824M to $218M in a year
Feb. 10, 2025 - The company's financial struggles stem from ongoing losses, production disruptions due to a Boeing machinists' strike, and changes in Boeing’s fuselage acceptance policies, further exacerbating its cash flow crisis. Amidst these challenges, Spirit is being acquired by Boeing in a $4.7 billion all-stock deal, expected to close in mid-2025, potentially stabilizing its finances but leaving uncertainty in the interim. (WSJ)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	cBEYONData [Bluestone Investment] SMX [OceanSound Partners]	-	-	-	Arlington, VA	Government Services, IT Services and Software
2	Jeyco Products Tide Rock	-	-	-	San Diego, CA	Distribution
3	G5 Infrared LightPath Technologies	$27.0	-	-	Hudson, NH	Defense Electronics
4	2G Engineering Everaxis	-	-	-	Sun Prairie, WI	Navy/Maritime
5	Vector Technics Zen Technologies	-	-	-	Hyderabad, India	Unmanned Vehicles
6	GMT Aerospace [GMT] TriMas	-	-	-	Furstenwalde, Germany	Components & Subsystems
7	London Gatwick MRO Facility of Boeing [Boeing] British Airways [International Consolidated Airlines Group]	-	-	-	Horley, United Kingdom	MRO & Logistics

No.	Target Descriptions
1	cBEYONData is a provider of implementation, design, and managed service capabilities, as well as a proprietary portfolio of budget management and financial analytics solutions that provide real-time data visibility and transparency to private sector and U.S. federal government civil, defense, healthcare, justice, and law enforcement markets.
2	Jeyco is a specialist in tool kitting and maintenance, repair, and operations products and distribution solutions for defense, aerospace, and industrial customers. The company's services include tool kitting, distribution of specialty tools, laser etching and part marking, and waterjet cutting.
3	G5 is a provider of high performance mid wave zoom thermal imaging camera systems and thin film deposition services on a variety of infrared substrates for private sector and U.S. federal government aerospace markets. The company offers complete build to print services for lens elements, windows, and filters, as well as coating services on customer furnished substrates, in both prototype quantities and high-volume production.
4	2G Engineering specializes in designing and manufacturing subsea linear and rotary actuators, as well as providing engineering design services. The company serves industries operating in extreme environments, including deep-sea oil and gas production, marine exploration, and industrial automation.
5	Vector Technics specializes in designing and manufacturing electric propulsion solutions, including BLDC motors, speed controllers, propellers, and power distribution systems. The company serves the UAV and robotics industries, providing high-performance components for various applications.
6	GMT Aerospace develops and manufactures tie-rods and rubber-metal anti-vibration systems. The company provides components that enhance aircraft stability and reduce vibration for commercial and military aerospace markets.
7	The London Gatwick MRO Facility of Boeing encompasses approximately 160,000 square feet of hangar space, accommodating up to two widebody or five narrowbody aircraft simultaneously. The facility will be used for minor maintenance checks on Boeing 777 aircraft and insourcing heavy maintenance for Airbus A320 and A321 aircraft.