A&D Weekly News & Transactions - Week 18

Industry Headline News

Executive Branch of the United States of America

Trump's "Golden Dome" Strategy: How Defense Contractors Fuel America's Military Might
May 4, 2025 - President Donald Trump's influence on U.S. defense contractors is examined, with his connections providing financial and strategic support. His relationships with key defense companies like Lockheed Martin and Northrop Grumman have strengthened the defense industry, with contracts amounting to billions of dollars for military projects, from fighter jets to missile systems. This "Golden Dome" strategy is framed as part of his broader vision to maintain U.S. military dominances. (The Wall Street Journal)

CHAOS Industries Secures $275 Million Series C to Advance Defense Technology and Coherent Distributed Networks
May 2, 2025 - CHAOS Industries has raised $275 million in a Series C funding round led by New Enterprise Associates (NEA) and co-led by Accel, bringing its total funding to $490 million since inception. The investment will support the development of the company's Coherent Distributed Networks™ platform and its first product, Vanquish™, a dual-use multistatic radar designed for early warning and tracking of unmanned aerial systems, missiles, and aircraft. The funds will also be used to scale manufacturing and enhance detection, monitoring, and communication solutions, with participation from StepStone Group, Overmatch Ventures, Tru Arrow Partners, and Valor Equity Partners. (Business Wire)

Gulfstream Completes $30 Million Expansion of St. Louis MRO Facility
May 2, 2025 - Gulfstream Aerospace has completed a $30 million expansion of its aircraft completions operations at the St. Louis Downtown Airport (KCPS) service center, enhancing its capacity for outfitting and delivering business jets. The modernized facility is expected to increase aircraft completions capability and bring more jobs to the region. This investment underscores Gulfstream's commitment to meeting growing customer demand and supporting its fleet with advanced maintenance, repair, and overhaul services. (AIN)

Amazon Eyes Kansas City for Prime Air Drone Delivery Expansion
May 1, 2025 - Amazon is considering expanding its Prime Air drone delivery service to Kansas City, Missouri, marking its first operation in a major U.S. city. The company has applied for a permit to expand a 220,000-square-foot warehouse, including the addition of four drone takeoff and landing pads, with city staff expressing minimal concerns about potential disruptions. This potential expansion follows a recent resumption of drone deliveries after a two-month hiatus and aligns with Amazon's broader plans to extend Prime Air services to larger domestic markets and internationally to Italy and the U.Ks. (FLYING Magazine)

Final CV-22 Osprey Enters Production as Bell and Boeing Conclude Air Force Program
May 1, 2025 - Bell and Boeing have commenced production of the final CV-22 Osprey at Bell’s Amarillo, Texas facility, marking the completion of the U.S. Air Force’s Program of Record for the tiltrotor aircraft. This CV-22 will support special operations missions requiring advanced speed and range capabilities. Post-production, Team Osprey will continue to provide sustainment and upgrades for the variant. Despite a 2023 crash in Japan that resulted in eight fatalities, the Air Force has resumed Osprey operations following comprehensive maintenance and procedural training. (Wikipedia)

Ryanair Considers COMAC Amid Tariff Concerns Over Boeing Orders
May 1, 2025 - Ryanair CEO Michael O’Leary has indicated that the airline may reassess its Boeing aircraft orders if U.S. tariffs significantly increase costs, potentially exploring alternatives like China's COMAC. In response, U.S. Representative Raja Krishnamoorthi warned against engaging with COMAC, citing national security concerns due to its ties to the Chinese military. O’Leary emphasized that while Ryanair hasn't engaged with COMAC since 2011, the airline remains open to considering more cost-effective suppliers if tariffs impact Boeing's pricing. (Reuters)

India Signs $7.4 Billion Deal with France for 26 Rafale Fighter Jets
Apr. 28, 2025 - India has signed a $7.4 billion agreement with France to procure 26 Rafale fighter jets from Dassault Aviation for its navy, comprising 22 single-seater and 4 twin-seater aircraft. The deal, approved by India's security cabinet chaired by Prime Minister Narendra Modi, aims to enhance defense ties with France and reduce reliance on Russian-origin equipment. Deliveries are expected by 2030, with crew training in both France and India, and the acquisition is projected to generate thousands of jobs and bolster domestic defense production. (Reuters)

Airbus Finalizes Deal to Take Over Certain Factories From Spirit AeroSystems
Apr. 28, 2025 - Airbus has finalized a deal to acquire several loss-making facilities from Spirit AeroSystems, including plants in Belfast, Northern Ireland; Prestwick, Scotland; Kinston, North Carolina; and operations in Morocco and France. This move is part of a broader restructuring effort, with Boeing agreeing to reacquire Spirit for $4.7 billion, while Airbus takes over operations critical to its A220, A320, and A350 programs. As part of the agreement, Spirit will pay Airbus $439 million in compensation for assuming these unprofitable operations, and Airbus will provide a $200 million credit line to support Spirit during the transition. (Reuters)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Select Airbus Commercial Aircraft Program assets of Spirit Aerosystems [Spirit Aerosystems] Airbus	-	-	-	Wichita, KS	Aerostructures
2	Machining division of KAM Technologies [KAM Technologies] Vaya Space	-	-	-	Cocoa, FL	Machined & Cast Parts
3	TRI-Star Plastics Sky Peak Capital	-	-	-	Shrewsbury, MA	Composites
4	Triaplex VTG [A&M Capital]	-	-	-	Hanover, MD	Cybersecurity, Intelligence Services and Homeland Defense
5	Turbine Weld VSE	$50.0	-	-	Venice, FL	MRO & Logistics
6	Star Lab [Aptiv] Mercury Systems	-	-	-	Washington D.C	Defense Electronics
7	KARGO UAV program of Kaman [Kaman] Piasecki Aircraft	-	-	-	Bloomfield, CT	Unmanned Vehicles

No.	Target Descriptions
1	The Select Airbus Commercial Aircraft Program assets of Spirit AeroSystems will include the site of Kinston, North Carolina, U.S. (A350 fuselage sections); the site of St. Nazaire, France (A350 fuselage sections); the site of Casablanca, Morocco (A321 and A220 components); the production of A220 pylons in Wichita, Kansas, U.S.; the production of A220 wings in Belfast, Northern Ireland; the production of the A220 mid-fuselage in Belfast, Northern Ireland. Airbus will also acquire the production of wing components for A320 and A350 in Prestwick, Scotland.
2	The Machining division of KAM Technologies includes advanced equipment such as 3D printers, electronics labs, and 3, 4, and 5-axis CNC mills, alongside multi-axis CNC mill/turn lathes.
3	TRI-Star is a provider of engineered plastic solutions and self-lubricating bearings to private sector and U.S. federal government aerospace, defense, and medical markets. The company's core capabilities include component design, material selection, prototype & production, manufacturing, and surface modification.
4	Triaplex is a developer of advanced radio frequency (RF) solutions for private sector and U.S. federal government national security and intelligence markets. The company's products and solutions protect physical infrastructure and digital systems from the threat of radio frequency (RF) hacking by leveraging machine learning and digital signal processing to monitor and analyze the electromagnetic spectrum.
5	Turbine Weld is a provider of MRO services focused on complex engine components for business and general aviation platforms. The company specializes in hot section components for Pratt & Whitney Canada engines—including the PW100, PT6, and JT15D series with approximately 25,000 engines in service.
6	Star Lab provides anti-tamper and cybersecurity software solutions designed to protect mission-critical processors from advanced attacks. The company's solutions are integrated into a wide range of Mercury's products including rugged servers, embedded processing cards, mixed signal cards, avionics, and integrated processing solutions.
7	The KARGO UAV program of Kaman is an autonomous medium-lift unmanned aerial vehicle, designed to provide efficient and reliable cargo resupply in challenging environments. The program features vertical takeoff and landing capabilities, a payload capacity of up to 800 pounds, and autonomous navigation systems for precise delivery missions.