A&D Weekly News & Transactions - Week 15

Industry Headline News

The US Navy Wants $8B for New Tomahawk Missiles
Apr. 9, 2026 - The U.S. Navy is seeking approximately $8 billion in funding to procure new Tomahawk cruise missiles, aiming to replenish stockpiles and enhance long-range strike capabilities. The request reflects increased demand for precision strike weapons amid evolving global threats and operational requirements. Expanding Tomahawk procurement is part of a broader effort to ensure readiness and sustain inventory levels for future contingencies. (The National Interest)

Aerospace Parts Maker Arxis Targets $11.2B Valuation in US IPO
Apr. 8, 2026 - Aerospace components manufacturer Arxis is targeting an $11.2 billion valuation in a planned U.S. initial public offering, signaling strong market confidence in the sector. The company, owned by Arcline Investment Management, supplies critical parts for both commercial and defense aircraft and aims to capitalize on rising production rates and long-term demand. The IPO underscores renewed investor appetite for aerospace suppliers as the industry continues to recover and expand. (Reuters)

Hermeus Hits $1B Valuation, Raises $350M and Moves HQ from Atlanta to Los Angeles
Apr. 7, 2026 - Hypersonic aircraft startup Hermeus has reached a $1 billion valuation after raising $350 million in new funding and announced plans to relocate its headquarters from Atlanta to Los Angeles. The move positions the company closer to key aerospace and defense customers while supporting continued development of its high-speed aircraft platforms. The funding round reflects growing investor interest in hypersonic technologies and next-generation aviation capabilities. (Hypepotamus)

UK's Senior Agrees to $1.9B Takeover by Aerospace Investor Tinicum and Blackstone
Apr. 7, 2026 - UK-based aerospace and defense supplier Senior has agreed to a $1.9 billion acquisition by investors Tinicum and Blackstone, taking the company private. The deal is expected to provide greater financial flexibility to support long-term growth and investment across its aerospace components and systems business. The transaction highlights continued private equity interest in aerospace suppliers amid strong demand and production ramp-ups across the sector. (Reuters)

Space Force Taps 14 Firms for $1.8B GEO Surveillance Program
Apr. 6, 2026 - The U.S. Space Force has selected 14 companies to compete for a $1.8 billion program focused on geosynchronous Earth orbit (GEO) surveillance capabilities. The initiative aims to enhance the military’s ability to monitor and track objects in high-altitude orbits, improving space domain awareness amid increasing congestion and competition. The broad vendor pool reflects a strategy to leverage both established contractors and emerging firms in developing next-generation space sensing technologies. (Space News)

Air Force Wants Nearly $1B to Start Buying CCAs in 2027
Apr. 6, 2026 - The U.S. Air Force is requesting nearly $1 billion in its fiscal 2027 budget to begin procurement of collaborative combat aircraft (CCA), marking a key step toward operationalizing autonomous drone wingmen. The funding would support initial production and deployment of systems intended to augment crewed fighters with additional sensing, strike, and electronic warfare capabilities. The request underscores the Air Force’s commitment to integrating autonomous platforms into future force structure and combat operations (Air & Space Forces Magazine)

General Atomics Pauses Drone Wingman Flight Tests After Crash
Apr. 6, 2026 - General Atomics has paused flight testing of its collaborative combat aircraft (CCA) drone following a recent crash during a test flight. The setback comes as the company works to develop autonomous “wingman” systems designed to operate alongside crewed aircraft in contested environments. While the cause of the crash remains under investigation, the pause highlights the technical challenges associated with advancing next-generation autonomous air combat platforms. (Defense One)

Pentagon Requests More Than $20B for Strategic Capital Loan Program in 2027
Apr. 6, 2026 - The Pentagon is seeking over $20 billion in funding for its Strategic Capital initiative in the fiscal 2027 budget, significantly expanding a program designed to provide loans and financial support to critical defense industrial base companies. The effort aims to improve access to capital for suppliers in key sectors such as manufacturing, microelectronics, and shipbuilding, helping to address production bottlenecks and supply chain vulnerabilities. The proposal reflects a broader push to strengthen industrial capacity and resilience through innovative financing mechanisms. (Defense Scoop)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	The Ely Company Aeromax Industries [Chimney Rock Equity]	-	-	-	Torrance, CA	Machined & Cast Parts
2	Sherwood Aviation HEICO	-	-	-	Opa Locka, FL	MRO & Logistics
3	Senior Blackstone & Tinicum Capital	$1,880.0	1.9x	18.4x	Hertfordshire, United Kingdom	Components & Subsystems
4	Aerotech Systems Scottish Leather Group	-	-	-	Middleton, United Kingdom	Machined & Cast Parts
5	Aircraft Instruments Midwest Aero Support [Diatom Capital]	-	-	-	Doylestown, PA	Components & Subsystems
6	Precision Aerospace Holdings [CIC Partners & Juniper Capital] Precinmac [Centerbridge Partners]	-	-	-	Dallas, TX	Machined & Cast Parts
7	New Generation Aerospace Aero Accessories & Repair [ATL Partners]	-	-	-	Medley, FL	MRO & Logistics
8	Tri-County Aerospace Aero Accessories & Repair [ATL Partners]	-	-	-	Miami, FL	MRO & Logistics
9	AeroDesignWorks MTU Aero Engines	-	-	-	Cologne, Germany	Unmanned Vehicles
10	PAS MRO ATC Group [AE Industrial]	-	-	-	Bristow, OK	MRO & Logistics
11	Prominent Edge Windward [FTV Capital]	-	-	-	Centreville, VA	Government Services, IT Services and Software
12	Southwest Antennas HEICO	-	-	-	Poway, CA	Defense Electronics

No.	Target Descriptions
1	The Ely Company manufactures tight-tolerance metallic components and assemblies for commercial and military aerospace applications. The company supports aerospace programs through CNC milling, turning, and precision machining capabilities, delivering complex parts aligned with stringent quality and performance requirements.
2	Sherwood Aviation is a provider of maintenance, repair, and overhaul (MRO) solutions for complex, mission-critical mechanical and electro-mechanical components for private sector and U.S. federal government aerospace and defense markets. The company specializes in C-130/L-100 and H-60 component repair, and supports a wide range of military aircraft, including F-15, F-16, UH-1, CH-47, OH-58, AH-64, H-65, KC-135, KC-10, and P-3.
3	Senior plc designs and manufactures engineered components and systems for aerospace and defense applications, including fluid conveyance systems, thermal management solutions, and precision machined parts used on commercial and military platforms. The company supports OEM and aftermarket demand through advanced manufacturing, materials expertise, and long-term program exposure.
4	Aerotech Systems manufactures sheet metal details, CNC-machined components, composite parts, and component assemblies for aerospace customers, working across aluminum, stainless steel, and titanium materials. The company supports customer requirements through multi-axis machining, autoclave-based composite manufacturing, reverse engineering, in-house tooling solutions, and surface-treated finished parts built to specification.
5	AIC is a manufacturer of aircraft instrumentation and avionics components for private sector and U.S. federal government aerospace and defense markets. The company specializes in pressure indicators, position indicators, and electromechanical systems used in both commercial and defense aircraft.
6	Precision Aerospace is a manufacturer of complex components for critical defense, aerospace, and space programs. The company's brands include Applegate EDM, LLC, Decatur Machine Services, Icon Machine Co, Owens Machine and Tool Co., and Clearwater Engineering. Collectively, the company specializes in difficult geometry and hard-to-machine metals, precision CNC milling and turning, the manufacture of complex multifaceted parts, tooling and prototypes, and multi-axis machining of titanium and nickel alloys.
7	New Generation Aerospace is an FAA repair station specializing in aircraft component rewinds and repairs, with a focus on power generation and related electrical components used in commercial aviation aftermarket applications. The company supports airline and aviation customers through specialized rewind, repair, and overhaul capabilities that expand servicing for generator and power generation systems.
8	Tri-County Aerospace is an FAA and EASA-certified repair station focused on the rewind and repair of aircraft electrical power generation components, including generators, rotor balance assemblies, exciter rotors, main stators, exciter stators, and PMG stators. The company supports commercial and military aircraft platforms with in-house engineering, electron beam welding, machining, and BER recovery capabilities for components often scrapped by other repair stations.
9	ADW is a developer of propulsion systems for unmanned aerial vehicles (UAVs) and modern guided missile systems in private sector and international government aerospace and defense markets.
10	PAS MRO provides maintenance, repair, and overhaul services for aerospace bearings, components, and assemblies supporting commercial and defense aviation applications. The company specializes in bearing inspection and overhaul, component repair, and controlled testing, serving aircraft engine, airframe, accessory, helicopter, and ground power platforms.
11	Prominent Edge is a developer of geospatial, maritime, and mission software solutions for private sector and U.S. federal government markets. The company's core capabilities include web & mobile, devops & automation, geospatial, user experience design, and AI & data analytics.
12	Southwest Antennas designs and manufactures rugged RF and microwave antennas, amplifiers, filters, and related accessories for defense, law enforcement, and other mission-critical communications applications. The company supports tactical communications, electronic warfare, ISR, and data link missions with broadband, vehicle-mounted, manpack, and directional antenna solutions engineered for demanding operational environments.