A&D Weekly News & Transactions - Week 21

Industry Headline News

Air Force Sees Another Year Delay for Next-Gen Engines
May 26, 2026 - The U.S. Air Force’s Next Generation Adaptive Propulsion (NGAP) program is facing an additional delay, with prototype engine development now expected to continue into fiscal 2030. The program, led by GE Aerospace and Pratt & Whitney, is developing advanced adaptive engines intended for future aircraft such as the F-47 next-generation fighter. According to the Air Force, the revised timeline is tied to ongoing supply chain challenges affecting the program. Updated budget documents also show reduced projected funding for NGAP compared with prior estimates. (Breaking Defense)

UK's Bodycote gets $2B Apollo Buyout Proposal
May 22, 2026 - UK-based thermal processing company Bodycote confirmed it received a conditional takeover proposal from Apollo Global Management valued at approximately $2.04 billion. The proposed offer values the company at 885 pence per share and includes a proposed final dividend for the 2025 financial year. Bodycote provides engineering and heat treatment services across industries including aerospace, automotive, and defense. Apollo has until June 19 to decide whether to make a formal offer. (Reuters)

KKR Sells CIRCOR Aerospace to Parker Hannifin for $2.55B
May 21, 2026 - Parker Hannifin has agreed to acquire Circor Aerospace from private equity firm KKR in a $2.55 billion deal. Circor Aerospace manufactures components and systems used in commercial and defense aircraft, and the acquisition will expand Parker Hannifin’s aerospace portfolio. KKR will retain ownership of Circor’s naval and industrial businesses following the transaction. The deal is expected to close in the second half of 2026. (Yahoo Finance)

Pentagon Taps Shield AI for Low-Cost Drone Program as Iran War Accelerates Demand for Cheap Drones
May 19, 2026 - The Pentagon is partnering with defense technology company Shield AI to support development of low-cost autonomous drone and missile systems. The effort will integrate Shield AI’s Hivemind autonomy software into low-cost uncrewed combat attack systems designed for large-scale deployment. The program is intended to reduce costs associated with traditional weapons systems while expanding the military’s ability to deploy autonomous platforms in combat operations. (CNBC)

Marine Corps to Retire Hornet Fleet by 2030 in Shift to All F-35 Fighters
May 19, 2026 - The U.S. Marine Corps plans to retire its F/A-18 Hornet fleet by 2030 as it transitions to an all-F-35 tactical aircraft force. The move is part of a broader modernization strategy focused on fifth-generation aircraft and updated aviation capabilities. As the transition continues, maintenance jobs tied to the Hornet platform will also be phased out. The Marine Corps currently operates both F-35B and F-35C variants as replacements for its aging Hornet fleet. (Military.com Network)

US Army Seeks Mach 5 Missiles Under $1M to Defend Against Drone Raids
May 18, 2026 - The Pentagon is seeking development of lower-cost hypersonic interceptor missiles capable of traveling at speeds above Mach 5. The initiative is intended to improve defenses against drones, cruise missiles, and ballistic threats while reducing reliance on more expensive missile systems. The U.S. Army’s Rapid Capabilities and Critical Technologies Office issued a request for information focused on affordability and scalable production. The effort reflects broader Pentagon interest in expanding missile inventories and accelerating development of next-generation weapons technologies. (Interesting Engineering)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Skip Dynamix Draganfly	$7.5	-	-	McLean, VA	Unmanned Vehicles
2	CMD EDGE Group	-	-	-	San Nicola La Strada, Italy	Engines & Engine Systems
3	Exquadrum Mach Industries	$50.0	-	-	Victorville, CA	Satellite, Satellite Services & Space Systems
4	Solestial York Space Systems	-	-	-	Tempe, AZ	Satellite, Satellite Services & Space Systems
5	Quaze Technologies Red Cat Holdings	$21.0	-	-	Quebec, Canada	Unmanned Vehicles
6	CIRCOR Aerospace [KKR] Parker Hannifin	$2,550.0	9.4x	24.8x	Corona, CA	Components & Subsystems
7	D&G Machine Products Excelus [Sky Peak Capital]	-	-	-	Westbrook, ME	Machined & Cast Parts
8	Millennium Precision Excelus [Sky Peak Capital]	-	-	-	Manchester, NH	Machined & Cast Parts

No.	Target Descriptions
1	Dynamix is a developer of ultra-low-cost, mass-producible fixed-wing unmanned aerial systems designed for long-range ISR, electronic warfare support, logistics, and one-way missions for private sector and U.S. federal government markets. The company's Orca platform is a long-range, hyper-customizable, multi-purpose, hand-launchable, fixed-wing sUAS capable of flight speeds of 40 miles per hour and endurance capability of 1 hour per kilogram.
2	CMD designs and manufactures propulsion systems, aircraft engines, and precision mechanical systems for aerospace and aviation applications. The company supports general aviation and advanced propulsion programs through in-house engineering, machining, assembly, testing, and hybrid propulsion development capabilities.
3	Exquadrum develops advanced propulsion and energetic systems for aerospace and defense applications, specializing in hypersonics, solid rocket motors, and high-temperature materials technologies. The company supports next-generation missile and space programs through propulsion design, testing, and advanced manufacturing capabilities.
4	Solestial develops radiation-hardened solar technologies designed for satellites and space-based power applications. The company focuses on lightweight, resilient photovoltaic systems engineered to withstand harsh space environments while reducing cost and manufacturing complexity for space platforms.
5	Quaze is a developer of wireless power transfer technologies for unmanned systems, drones, and autonomous machines in private sector and international government markets. The company's platform leverages tubular power technology and magnetic resonance to provide continuous, 360-degree wireless charging regardless of obstacles or exact positioning in demanding environments.
6	CIRCOR Aerospace is a manufacturer of fluid control products and aircraft landing gear systems and components. Specific fluid control products include check valves, sampling and bleed valves, solenoid valves, pressure regulators, relief valves, float valves, shutoff valves, pressure gauges, cryogenic valves, motor-operated valves, auto-drain valves, and vent and breather valves.
7	D&G Machine manufactures precision machined components and assemblies for aerospace, defense, and industrial applications requiring tight tolerances and complex geometries. The company supports production programs through advanced CNC machining, inspection, and quality-controlled manufacturing processes.
8	Millennium Precision manufactures tight-tolerance machined components and assemblies for aerospace and defense applications using advanced CNC machining technologies. The company supports complex programs through multi-axis machining, inspection, and disciplined quality systems aligned with aerospace production requirements.