A&D Weekly News & Transactions - Week 35

Industry Headline News

UK secures record £10 billion deal to supply Norway with Type 26 frigates
Aug. 31, 2025 - The UK has agreed to its largest-ever warship export contract, worth £10 billion, to deliver at least five advanced Type 26 anti-submarine frigates to the Norwegian navy, marking Norway’s biggest defence capability investment to date. The deal is expected to sustain some 4,000 UK jobs well into the 2030s—over 2,000 of them at BAE Systems’ Glasgow shipyards—while reinforcing NATO maritime security with a future joint fleet of 13 frigates. (BBC News)

Israeli Defense Ministry Withdraws From Major UK Arms Exhibition
Aug. 29, 2025 - Israel’s Defense Ministry announced it will not establish a national pavilion at the upcoming DSEI UK 2025 arms exhibition in London, citing “unilateral restrictions” imposed by the British government that banned attendance by government and military officials and the use of official signage. The ministry condemned the move as politically motivated and discriminatory, though Israeli defense companies—including Elbit Systems, Rafael, IAI, and Uvision—will still be permitted to participate independently. This marks another instance of European trade-show-related tensions, following similar limitations on Israeli representation at both the Paris Air Show and an upcoming Dutch exhibition. (Defense News)

NATO Says All Allies to Meet 2% Defense Spending Target This Year
Aug. 29, 2025 - NATO reported that all 32 member states are expected to meet the long-standing defense spending target of allocating at least 2% of their GDP to defense in 2025, marking a major milestone for the alliance. Total annual expenditure, including the U.S., is estimated at around $1.6 trillion, up from $1.45 trillion in 2024, with Europe and Canada accounting for over $607 billion alone. Additionally, most members (except Belgium) are projected to allocate at least 20% of their defense budgets to major equipment, led by Poland, which is expected to channel approximately 54% towards platforms and kit. (Defense News)

Embraer hits landmark with 2,000th business jet delivery
Aug. 28, 2025 - Embraer has surpassed 2,000 business jet deliveries, marking the milestone with the delivery of a Praetor 500 to an undisclosed corporate flight department during a ceremony at its Executive Global Customer Center in Melbourne, Florida. The Praetor 500, noted as the fastest and longest-range midsize jet, offers an intercontinental range of 3,340 nautical miles (6,186 km) with four passengers and NBAA IFR Reserves. Embraer CEO Michael Amalfitano hailed the achievement as a testament to the strength of its product portfolio, the disruptive technology of the Praetor 500 and 600 families—including full fly-by-wire with active turbulence reduction and short-runway performance—and the company’s consistent executive aviation growth averaging 14 percent annually since its first delivery in 2002. (Aviation Pros)

Korean Air seals record-setting $50 billion order for 103 Boeing jets, engines and 20-year maintenance pact
Aug. 26, 2025 - Korean Air has agreed to a massive $50 billion deal that includes $36.2 billion for 103 next-generation Boeing aircraft, $690 million for 19 spare engines from GE Aerospace and CFM International, and a $13 billion, 20-year engine maintenance service contract with GE Aerospace. The order encompasses 20 Boeing 777-9s, 25 787-10s, 50 737-10s and eight 777-8F freighters, with deliveries scheduled through the end of 2030, and was formalized at a Washington signing during a meeting between President Lee Jae-Myung and President Donald Trump. Korean Air described the move as a strategic investment to bolster its operational capabilities and deepen U.S. aviation sector ties. (AP News)

Executive Branch of the United States of America

President Trump's team weighing equity stakes in defense giants
Aug. 26, 2025 - Commerce Secretary Howard Lutnick revealed in a CNBC interview that the Trump administration is exploring taking equity stakes in major U.S. defense contractors—including Lockheed Martin, Boeing, and Palantir—as part of a broader shift toward government ownership in key industries following its recent 10 % stake in Intel in exchange for an $8.9 billion CHIPS Act–backed investment. (Washington Post)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	MLD Technologies General Atomics	-	-	-	Mountain View, CA	Components & Subsystems
2	Madison Springfield Culmen International [Hale Capital]	-	-	-	Austin, TX	Government Services, IT Services and Software
3	Smart Precision Optics Ondas Networks	-	-	-	Shamir, Israel	Components & Subsystems
4	NSL Aerospace Bron Tapes [Rotunda Capital]	-	-	-	Magnolia, TX	Distribution
5	TransponderTech business of Saab [Saab] Teledyne	-	-	-	Linköping, Sweden	Defense Electronics
6	Cal-Draulics Amca	-	-	-	Corona, CA	Machined & Cast Parts
7	Armaids business of DuPont [DuPont] Arclin [The Jordan Company]	$1,825.0	1.4x	-	Newark, DE	Composites

No.	Target Descriptions
1	MLD Technologies is a developer of high-performance optical coatings and components for private sector and U.S. federal government aerospace and defense markets. The company specializes in atomic layer deposition, ultrafast laser optics, large ion-beam-sputtered (IBS), low optical-loss, and laser-damage-resistant thin-films for the UV-visible-IR spectral region.
2	Madison Springfield is a provider of AI/ML-enabled predictive platforms engineered for autonomous data acquisition and analysis in private sector and U.S. federal government markets. The company specializes in strategic risk management, international development, and government affairs services to help clients navigate complex regulatory, political, and economic environments.
3	Smart Precision Optics is a manufacturer of advanced precision optical components and systems. The company's technology integrates optical hardware, thermal imaging, and sensor platforms to deliver high-performance imaging and targeting solutions for mission-critical environments.
4	NSL Aerospace is a provider of custom packaging and distribution of liquid adhesives and sealants for private sector and U.S. federal government aerospace markets.
5	The TransponderTech business is a provider of commercial radio products and software solutions to both civil and military customers within the maritime domain covering shipborne AIS and GNSS systems, airborne AIS, and AIS stations for coastal and offshore applications.
6	Cal-Draulics is a manufacturer of precision aerospace hydraulic components, specializing in build-to-print machining, assembly, and testing of valves, actuators, and fluid power systems. The company offers fully integrated manufacturing and testing services, ensuring every hydraulic assembly is assembled and 100 percent tested before delivery.
7	The Aramids business focuses on the design, manufacture, and supply of high-performance synthetic fibers that offer exceptional strength, heat resistance, and durability. The company produces renowned aramid products used for personal and structural protection, fire-resistance, and aerospace composite reinforcements.