A&D Weekly News & Transactions - Week 34

Industry Headline News

Pratt & Whitney Secures $2.9 B Contract for 141 F135 Engines in Lot 18 Production
Aug. 23, 2025 - The U.S. Department of Defense has inked a $2.9 billion production contract with Pratt & Whitney (part of RTX) for the manufacture and delivery of 141 F135 engines intended for Lot 18 of the Lockheed Martin-built F-35 Lightning II fleet. The deal covers engines for both U.S. forces and international customers, with deliveries slated to finish by February 2028 and an initial $2 billion tranche already allocated at signing. Pratt & Whitney has now delivered over 1,200 F135 engines—logging more than one million flight hours—and anticipates starting delivery of modernized units in 2028, including an Enhanced Power and Cooling System (EPACS) for Block 4 upgrades, projected to save around $40 billion over the fleet’s lifetime. (Defence Industry Europe)

Mexican Federation of the Aerospace Industry (FEMIA)

Mexico’s Aerospace Sector to Demand 100,000 Specialists by 2030
Aug. 22, 2025 - A study by the Mexican Council of Aerospace Education (COMEA), involving over 70 experts from 30 higher-education institutions, projects that Mexico's aerospace industry will require 105,266 specialists by 2030. Of those, approximately 84,084 will be needed in manufacturing roles such as engineers, technicians, and operators; 14,703 in air operations; 5,469 in MRO; and 983 in engineering services. Current enrollment in aerospace-related programs stands at 11,044 students and is expected to rise to 15,849 by 2030—but still falls significantly short of industry demand. To help bridge the gap, COMEA, the Mexican Federation of the Aerospace Industry (FEMIA), and the Virtual Business Center launched the country’s first Virtual Aerospace Recruitment Fair, running from August 1–29, with plans for a second edition in 2026. (Mexico Business News)

Boeing in Negotiations to Potentially Sell Up to 500 Jets to China
Aug. 21, 2025 - Boeing is reportedly in discussions to sell as many as 500 aircraft to China, with both parties negotiating details such as jet models, types, and delivery schedules, according to sources cited by Bloomberg News and reported by Reuters. This prospective deal could mark Boeing’s first significant commercial success in China since a previous peak during Donald Trump’s earlier presidency, representing a major opportunity in the world’s second-largest aviation market. A completed agreement could also serve as the centerpiece of a broader US–China trade deal, potentially offsetting Boeing’s lag behind key rival Airbus, which has held a stronger position in China in recent years. (Reuters)

Hadrian Invests $200 Million to Build AI-Powered “Factory 3” in Mesa, Creating 350 Jobs
Aug. 20, 2025 - Hadrian is investing $200 million to establish a 270,000 sq ft manufacturing and software hub—Factory 3 (F3)—in Mesa, Arizona, designed to scale production of mission-critical aerospace and defense systems using its proprietary Opus software for rapid, autonomous factory deployment in under six months. Located in Building A of the two-building The Cubes Mesa Gateway industrial project, the facility is expected to be fully operational by early 2026 and will create 350 new jobs. Additionally, Hadrian announced a broader $260 million capital expansion—including a 400,000 sq ft corporate and R&D headquarters and the launch of Hadrian Maritime, extending its autonomous factory model into shipbuilding and naval defense—funded via Series C financing led by Founders Fund and Lux Capital, alongside a factory expansion loan from Morgan Stanley. (Plant Services)

XTI Aerospace Advances Digital Model of TriFan 600 VTOL Aircraft
Aug. 19, 2025 - During the second quarter of 2025, XTI finalized the digital model for the latest configuration of its TriFan 600 VTOL aircraft, reflecting progressed design maturity. The company also raised $18.4 million through a public offering in June to fund continued development. This digital milestone positions the TriFan 600—designed to offer both helicopter-like vertical lift and business jet-level speed and range—closer to certification and eventual production. (AINonline)

US Approves $500 Million HIMARS Sale to Bahrain
Aug. 19, 2025 - The U.S. State Department has endorsed a possible Foreign Military Sale to Bahrain valued at approximately $500 million, subject to Congressional approval — the package includes four M142 HIMARS launchers, three International Field Artillery Tactical Data Systems, M28A2 low-cost reduced-range practice rocket pods, M1084A3 HIMARS resupply vehicles, fire direction centers, Driver Vision Enhancer systems, AN/PSN-13 Defense Advanced GPS Receivers, along with a suite of support/test equipment, simulators, generators, technical documentation, training, and integration support. The purchase aims to bolster Bahrain’s ability to support U.S. installations and personnel, enhance integration into U.S.-led coalitions, and operate independently in ways that further U.S. strategic interests and security in the region. Lockheed Martin, based in Texas, has been named the principal contractor for the sale, with no offset agreement proposed. (The Defense Post)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Trexon [Audax] Amphenol	$1,000.0	3.4x	13.3x	Boston, MA	Connectors
2	Beams Technology Comply365 [Liberty Hall & Insight Partners]	-	-	-	Berlin, Germany	Government Services, IT Services and Software
3	Deform Saab	-	-	-	Degerfors, Sweden	Machined & Cast Parts
4	PED business of SKF Group [SKF Group] Carco - Precision Rubber Products	$70.0	2.6x	-	Elgin, IL	Components & Subsystems
5	Caesar Creek Software Cryptic Vector [Enlightenment Capital]	-	-	-	Miamisburg, OH	Government Services, IT Services and Software
6	Apeiro Motion Ondas Networks	$12.0	1.0x	-	Tzur Yigal, Israel	Unmanned Vehicles
7	Aeromet [Privet Capital] Pursuit Aerospace [Greenbriar Equity]	-	-	-	Worcester, United Kingdom	Machined & Cast Parts
8	Achates Power General Atomics Aeronautical Systems [General Atomics]	-	-	-	San Diego, CA	Engines & Engine Systems
9	High Tech Solutions BTX Precision [L Squared Capital]	-	-	-	Lee's Summit, MO	Machined & Cast Parts
10	Fosai Pasteur Labs	-	-	-	Ithaca, NY	Government Services, IT Services and Software

No.	Target Descriptions
1	Trexon is a manufacturer of ruggedized cable assemblies, specialty connectors, and interconnect systems tailored for mission-critical applications. The company delivers durable solutions optimized for extreme environments, supporting sectors such as aerospace, defense, space, medical, and quantum/AI systems.
2	Beams Technology is a provider of artificial intelligence solutions for safety risk management within aviation organizations. The company has pioneered a safety AI solution for the aviation industry which automates safety data processing and enables proactive, predictive risk management.
3	Deform is a designer and manufacturer of advanced hot and cold forming solutions and precision-engineered components for pressure vessel, protection, heavy fabrication, and heavy equipment applications in private sector and international government defense markets.
4	The PED business of SKF Group manufactures precision elastomeric devices that serve as shock and vibration isolators for aerospace equipment. The company produces high-quality elastomeric components designed to protect sensitive systems from mechanical stresses.
5	Caesar Creek is a provider of offensive cyber research and development services for private sector and U.S. federal government defense and intelligence markets. The company's services include vulnerability analysis, exploit development, reverse engineering, and network security.
6	Apeiro is a provider of advanced ground robotics, fiber optic communication systems, and mission-critical automation technologies for private sector and international government defense and homeland security markets. The company's products include rugged quadrupedal robots, unmanned ground vehicles (UGVs), robotic arms, and a state-of-the-art fiber-optic spool designed for secure, radio-independent communications for first-person view (FPV) drones, unmanned aerial vehicles (UAVs), and missile systems.
7	Aeromet is a supplier of precision aluminium and magnesium castings, titanium products and aluminium stretch forming to private sector and international government automotive, defense, and medical markets. The company specializes in the production of avionics chassis and housings, escape doors, fuel pumps, aero-engine heat exchangers, air intakes, aircraft canopies, structural castings, fuel connectors, and transmission castings.
8	Achates Power is a developer of advanced internal combustion engine technologies for private sector and U.S. federal government aerospace, defense, and energy markets. The company's proprietary opposed-piston (OP) engine reduces heat losses and improves thermal efficiency to achieve more complete combustion, fewer moving parts, and increased fuel efficiency compared to conventional engine designs.
9	High Tech Solutions engages in advanced 3-, 4- and 5-axis vertical and horizontal machining and manufactures a broad range of value added benchtop and mechanical products within the commercial aerospace, military and space marketplaces.
10	Fosai is a provider of digital platform development for system integration, plug-and-play architectures, and data services integration for autonomous systems in aerospace and defense applications. The company's expertise enables next-generation capabilities in demanding, contested operational environments, including AI on forward-deployed space vehicles.