A&D Weekly News & Transactions - Week 9

Industry Headline News

Spirit AeroSystems reported a $631M loss in Q4 2024, increasing its total annual loss to $2.1B
Feb. 28, 2025 - The company, struggling with quality issues and lower-than-expected production, warned it needs additional funding to continue operations and meet financial obligations. Despite these challenges, Spirit remains focused on securing more funding and closing its planned acquisition by Boeing in mid-2025. (Flight Global)

Embraer plans to increase aircraft deliveries by up to 18% in 2025, aiming for 240 commercial and executive jets as demand continues to rise
Feb. 27, 2025 - Despite supply chain challenges, the company has been recovering since the pandemic, with higher annual deliveries expected to boost revenues to between $7.0 billion and $7.5 billion. Embraer remains optimistic, with solid demand for its jets and ongoing sales campaigns, including military aircraft orders. (Reuters)

Dynamic Aerostructures (which primarily consists of of Forrest Machining, Inc. dba FMI Aerostructures), a key supplier for major aerospace firms, has filed for bankruptcy due to quality-control issues, contract challenges, and rising inventory costs
Feb. 26, 2025 - Owned by Endeavour Capital, the company plans to auction itself off in a court-supervised sale, with a bid deadline set for April 7. This bankruptcy highlights the struggles of private equity-backed firms, which accounted for nearly 16% of U.S. corporate bankruptcies in 2024, the highest rate since 2010. (Bezinga)

Boeing has restructured Stephanie Pope's role, narrowing her focus to lead the recovery of its commercial airplane unit while ending her position as chief operating officer
Feb. 25, 2025 - Pope will continue to oversee the struggling division, which has faced production and safety challenges since the 737 MAX crises. Despite setbacks, Boeing's airplane deliveries are increasing, signaling potential improvements in its operations. (Yahoo! Finance)

Japan’s ANA Holdings announced a record order of up to 77 aircraft worth over $14B to meet rising travel demand, with deliveries expected between 2028 and 2033
Feb. 25, 2025 - The order includes planes from Boeing, Airbus, and Brazil’s Embraer, marking Embraer’s first major breakthrough in Japan and signaling ANA’s strategy to enhance fleet flexibility. This move follows Japan’s stalled domestic aircraft production and aligns with ANA’s plans to expand international flights while maintaining domestic flight levels. (Reuters)

Bain Capital has made at least one bid to acquire Chemring, a £975m FTSE 250 defence company, with an initial offer reportedly around 390p per share
Feb. 24, 2025 - Chemring, which supplies defence and aerospace products to organisations like NASA and SpaceX, faces challenges such as U.S. factory issues affecting profit margins despite a record order book. The bid aligns with a broader trend of private equity takeovers of undervalued UK-listed companies, fueled by rising defence spending and activist investor influence. (Sky News)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Frazier Aviation Seven Point Equity	-	-	-	San Fernando, CA	Machined & Cast Parts
2	Loki Solutions VTG [A&M Capital]	-	-	-	Kensington, MD	Government Services, IT Services and Software
3	Marine Tech Wire & Cable Marmon Aerospace & Defense [Berkshire Hathaway]	-	-	-	York, PA	Navy/Maritime
4	Pryer Aerospace Argonaut Private Equity	-	-	-	Tulsa, OK	Machined & Cast Parts
5	Independent Forgings & Alloys [BFG Investment] Trive Capital	-	-	-	Sheffield, United Kingdom	Machined & Cast Parts
6	IAG Engine Center Europe [IAG] FTAI	-	-	-	Rome, Italy	MRO & Logistics
7	Electro-Methods Stronvar Aerospace [Blackstone]	-	-	-	South Windsor, CT	Machined & Cast Parts
8	Pan Am International Flight Academy Acorn Growth Companies	-	-	-	Miami, FL	Simulation & Training Systems
9	Heicks Industrieelektronik Variosystems [Capvis]	-	-	-	Geseke, Germany	Defense Electronics

No.	Target Descriptions
1	Frazier is a manufacturer of precision machined and sheet metal aircraft parts and assemblies for private sector and U.S. federal government aerospace, defense, and maritime markets. The company is a Lockheed Martin approved 98897 supplier and provides MRO services for C130, P3, F16, F15, and C5 aircraft platforms.
2	Loki is an IT consulting firm providing technology-focused solutions to private sector and U.S. federal government markets. The company specializes in IT infrastructure, application and systems management, data management and analysis, and cybersecurity.
3	Marine Tech Wire and Cable is a manufacturer of multiconductor cables used in ships, oil drilling platforms and other industrial applications that require high performance in challenging environments. The company specializes in power, specialty, lightweight, low smoke, silicone, and watertight circuit integrity cabling for mission-critical shipboard applications.
4	Pryer Aerospace is a provider of structural components, assemblies and kits to the private sector and U.S. federal government aerospace markets. The company specializes in the fabrication of complex sheet metal, machined components, and composites for commercial, corporate, and military aircraft.
5	The company operates a 670,000 square foot facility and is certified to ISO 9001:2015, AS9100D, ISO 45001, ISO 14001, and ISO/IEC 17025:2017 standards. Aerospace manufactures a wide range of military grade, high-performance fans and cooling solutions for private sector, U.S. federal government, and international government aerospace and defense markets.
6	IAG Engine Center Europe, to be rebranded as QuickTurn Europe, is a 200,000 square-foot CFM56 engine maintenance repair and overhaul facility located at the Rome Fiumicino Airport. The facility’s CFM56 engine test-cell is expected to be fully operational within 24 months and its piece-part repair capabilities are expected to be operational in the second half of 2025.
7	EMI specializes in the fabrication of high-value assemblies using exotic aerospace alloys for aero engine OEMs. The company's capabilities include welding, machining, and special process technologies.
8	Pan Am Flight Academy is a provider of flight simulator-based training, and other ancillary services, focused on commercial aircraft platforms with a fleet of 25 owned full flight simulators and flight training devices.
9	Heicks Industrieelektronik specializes in electronic solutions for the aerospace sector. The company provides high-precision electronics manufacturing, PCB assembly, and surface sealing of electronic solutions, particularly utilizing advanced Parylene coating technology.