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A&D Weekly News & Transactions - Week 3
Industry Headline News
Ethiopian Airlines Orders Nine Additional Boeing 787-9 Dreamliners
Jan. 20, 2026 - Ethiopian Airlines has placed an order for nine more Boeing 787-9 aircraft, a deal disclosed on Jan. 20, 2026 that was reportedly finalized in December 2025 shortly after the Dubai Airshow, where the carrier also firmed up orders for 11 Boeing 737 MAX 8s and secured eight Airbus A350s (six direct and two via Novus Aviation Capital). The follow-on order builds on previous commitments including 11 787s and 20 737 MAX jets from the 2023 Dubai Airshow and underscores CEO Mesfin Tasew’s strategy to expand the airline’s fuel-efficient long-haul fleet and advance sustainable aviation. As of early 2026, Ethiopian operates Africa’s largest Dreamliner fleet with 30 aircraft including both –8 and –9 variants, supplemented by 777s and A350s. (AeroTime)
Boeing Secures $2 Billion U.S. Air Force Contract to Test New Engines on B-52 Stratofortress at Port San Antonio
Jan. 19, 2026 - Boeing has been awarded a $2 billion contract from the U.S. Air Force to install and test new Rolls-Royce engines on two B-52 Stratofortress bombers at its Port San Antonio modification facility as part of the ongoing modernization effort that could keep the bomber in service through 2050. The work, expected to be completed by 2033, will also include upgrades to reliability, maintenance and mission capability and take place at facilities in Oklahoma City and Seattle, with Port San Antonio stakeholders highlighting local economic benefits. The modernization is part of broader B-52 upgrades that include radar improvements and will result in a redesigned variant designated the B-52J capable of carrying nuclear weapons and flying up to 50,000 feet. (San Antonio Report)
TransDigm to Buy Jet Parts Engineering and Victor Sierra Aviation for $2.2 Billion in Aerospace Aftermarket Expansion
Jan. 16, 2026 - TransDigm Group agreed to acquire Jet Parts Engineering and Victor Sierra Aviation Holdings from private-equity owner Vance Street Capital for about $2.2 billion in cash, including tax benefits, to strengthen its foothold in the high-margin aerospace aftermarket amid strong demand as carriers extend fleet lifespans. Jet Parts, based in Seattle, and Victor Sierra, headquartered in Baldwin City, Kansas, together generated roughly $280 million in 2025 revenue by designing and supplying proprietary Part Manufacturer Approval and other replacement parts for commercial, regional, cargo, general and business aviation customers. The deal follows recent TransDigm acquisitions such as Stellant Systems and Simmonds Precision Products and reflects the company’s strategy to grow its engineered aftermarket components business. (Reuters)
Airbus Surpasses Revised 2025 Delivery Target with 793 Aircraft but Faces Ongoing Supply Chain Challenges
Jan. 15, 2026 - Airbus delivered 793 commercial aircraft to 91 customers in 2025, exceeding its revised annual target and marking a 4 % increase year-on-year, while securing about 1,000 gross orders that resulted in a record backlog of 8,754 jets, including widebody and single-aisle models. Despite this output milestone, the company continues to grapple with persistent supply chain issues—such as late jet engines for the A320neo family and tier-one supplier bottlenecks—that have required managing airframes across assembly stages and signal hurdles ahead for production scaling. Outgoing Commercial Aircraft CEO Christian Scherer highlighted progress but acknowledged that specific component delays and global procurement challenges remain critical as Airbus plans to further ramp up production. (Supply Chain Digital)
U.S. Opens Fast-Tracked Path for Hypersonic Mass Production Under New MACH-XL Program
Jan. 14, 2026 - The U.S. military has launched a second acquisition track under the Multi-service Advanced Capability Hypersonic Accelerator (MACH-XL) initiative to help develop and mass-produce affordable hypersonic missiles, offering a fast-track Other Transaction agreement for prototype demonstrations aimed at air-to-air, air-to-ground, ground-to-ground and ground-to-air roles. The program, outlined in a Jan. 8 briefing webinar, aims to broaden the supplier base with lower-cost alternatives to legacy systems like the Army’s Lockheed Martin Long Range Hypersonic Weapon and the Navy’s Conventional Prompt Strike, with companies such as Castelion and Kratos proposing new offensive hypersonic glide vehicles. MACH-XL’s streamlined path is intended to accelerate validation and production of advanced designs that have struggled to enter full operational service. (Aviation Week Network)
European Ammunition Group Czechoslovak Group Prepares €30 Billion IPO in Amsterdam
Jan. 14, 2026 - Czech defence manufacturer Czechoslovak Group, backed by billionaire Daniel Křetínský and current owner Michal Strnad, is preparing an initial public offering on Euronext Amsterdam that could value the company at around €30 billion, making it one of Europe’s largest defence firms. The group, which makes ammunition and military equipment and has grown through acquisitions across the continent, sees strong demand fueled by war in Ukraine and increased NATO spending, with advisers including Goldman Sachs and BNP Paribas working on the listing. The IPO aims to support further expansion and reduce reliance on private equity ownership amid a competitive European defence market. (Financial Times)
JetZero Raises $175 Million Series B to Accelerate All-Wing Aircraft Development
Jan. 13, 2026 - JetZero, the California-based aerospace startup designing a commercial all-wing (blended-wing body) aircraft, has raised approximately $175 million in a Series B financing round led by B Capital with participation from United Airlines Ventures, Northrop Grumman, 3M Ventures, and RTX Ventures to accelerate development of its full-size Demonstrator prototype targeting a first flight in 2027 and at least 30 % improved aerodynamic efficiency over conventional tube-and-wing designs. The funding brings JetZero’s total capital and commitments to more than $1 billion, including government grants and Air Force support, and is aimed at advancing the Z4 program toward potential commercial service in the early 2030s. The company’s investors span strategic airline, aerospace and venture partners, reflecting broad industry backing for its effort to boost fuel efficiency and reduce emissions in future air travel. (PR Newswire)
Delta Air Lines Orders 30 Boeing 787-10 Dreamliners, First Direct Dreamliner Purchase
Jan. 13, 2026 - Delta Air Lines announced it will add Boeing’s 787-10 Dreamliner to its fleet for the first time by purchasing 30 aircraft with options for an additional 30, with deliveries beginning in 2031 as part of its long-haul fleet modernization and international expansion strategy. The Atlanta-based carrier plans to configure the Dreamliners with premium-heavy cabins including Delta One Suites and Delta Premium Select, and use them in part to replace its aging Boeing 767s while complementing its existing orders such as 100 Boeing 737 MAX 10s. Delta now has 286 new jets on order across Boeing and Airbus, and executives described the order as adding diversity and cost-efficient scale to its wide-body fleet. (The Points Guy)
Raytheon Says Patriot Air Defense Systems Will Be “As Up to Date as Humanly Possible” Amid Strong European Demand
Jan. 13, 2026 - Raytheon, an RTX subsidiary, is investing more than $1 billion to secure materials and stabilize its supply chain so Patriot surface-to-air missile systems can meet rising European orders amid heightened demand driven by Russia’s aggression, company land and air defense chief Tom Laliberty said in an interview. European NATO partners including Spain, Germany, the Netherlands, and Romania placed significant Patriot orders in 2025, with Spain’s purchase alone valued at about $1.7 billion for four fire units, and Ukraine has also indicated strong interest in acquiring more systems. Raytheon is focusing on shortening lead times and keeping Patriot technologically current while expanding coproduction and supplier integration across the U.S. and Europe to bolster deterrence and defense capabilities. (Breaking Defense)
Weekly Transaction Review
| No. | Parties Involved | Transaction Metrics | Location | Segment | ||
| Target [Parent] Acquirer [Parent] |
Price ($M) |
Price/ Revenue |
Price/ EBITDA |
Target | Target | |
| 1 | Alpha 2 Aurex [Godspeed Capital] |
- | - | - | Chantilly, VA | Government Services, IT Services and Software |
| 2 | Pond & Company [DC Capital] Arlington Capital |
- | - | - | Peachtree Corner, GA | Engineering and Project Management |
| 3 | Kremin Threadlock Precision [D.E. Shaw] |
- | - | - | Frankenmuth, MI | Machined & Cast Parts |
| 4 | Battle Road Digital Onebrief |
- | - | - | Meridian, ID | Government Services, IT Services and Software |
| 5 | Celestar B&A Associates [DFW Capital] |
- | - | - | Tampa, FL | Government Services, IT Services and Software |
| 6 | Wellman Dynamics [TRM Equity] JF Lehman |
- | - | - | Creston, IA | Machined & Cast Parts |
| 7 | Stuart Industries Fastener Distribution Holdings [Audax] |
- | - | - | Burleson, TX | Distribution |
| 8 | JMC Aviation LAUNCH [Capitol Meridian] |
- | - | - | Exeter, United Kingdom | MRO & Logistics |
| 9 | Altamira Technologies [ClearSky] Parsons |
$375.0 | 1.9x | 12.8x | McLean, VA | Government Services, IT Services and Software |
| 10 | Sky Mart Sales GracoRoberts [CM Equity] |
- | - | - | Miami, FL | Distribution |
| 11 | Providence Consulting Tetra Tech |
- | - | - | Scottsdale, AZ | Government Services, IT Services and Software |
| 12 | Fortreum Gryphon Investors |
- | - | - | Leesburg, VA | Cybersecurity, Intelligence Services and Homeland Defense |
| 13 | Jet Parts Engineering & Victor Sierra Aviation [Vance Street Capital] TransDigm |
$2,200.0 | 7.9x | - | Seattle, WA | Components & Subsystems |
| 14 | SEEQC Allegro Merger Corp. |
- | - | - | Elmsford, NY | Defense Electronics |
| No. | Target Descriptions |
| 1 | Alpha 2 is a provider of specialized, mission-focused cryptographic engineering, cybersecurity, and engineering services for private sector and U.S. federal government aerospace, defense, and space system markets. |
| 2 | Pond & Company is a provider of architectural, engineering, and contracting services to the private and public sectors. The company delivers integrated solutions across the full project lifecycle, spanning planning, architecture, engineering, program management and maintenance for energy, transportation and federal defense infrastructure, as well as life sciences manufacturing facilities. |
| 3 | Kremin manufactures precision machined components and assemblies for aerospace and defense customers, supporting structural, engine, and system-level applications with tight tolerance requirements. The company operates advanced CNC machining and inspection capabilities, delivering repeatable quality, traceability, and on-time performance for critical flight programs. |
| 4 | Battle Road Digital is a developer of scalable wargaming simulations for private sector and U.S. federal government aerospace and defense markets. The company's AtomEngine platform simulates conflicts, interactive terrain, weather, infrastructure, and natural phenomenon to a massive library of configurable AI-driven entities, allowing users to analyze the often unanticipated dependencies and effects that play out around the globe as a result. |
| 5 | Celestar is a provider of intelligence analysis & enabling services, data enterprise support, and training & professional services to private sector and U.S. federal government civil and defense markets. |
| 6 | Wellman is a manufacturer of large-scale, high complexity aluminum and magnesium sand castings for military and commercial applications. Primary end use applications are helicopter transmission housings and front frames for commercial aircraft. |
| 7 | Stuart is a distributor of aerospace fasteners for private sector and U.S. federal government commercial, military, and space programs. The company specializes in the distribution of pins, nuts, bolts, and collars for all types of aerostructures. |
| 8 | JMC Aviation provides specialized technical staffing, engineering support, and consultancy services to aircraft manufacturers, MRO providers, and aviation operators. The company supports production ramp-ups, maintenance activity, and program execution by supplying certified personnel and flexible workforce solutions across global aviation markets. |
| 9 | Altamira is a provider of IT and engineering services to private sector and U.S. federal government aerospace and defense markets. With core strengths in missile warning, AI/ML-enabled analytics, space-based mission support, and SIGINT/cyber operations, Altamira provides customers with the ability to detect, characterize, and respond to emerging threats across all domains. |
| 10 | Sky Mart is a distributor of aerospace chemical, lubricant and specialty fluids for private sector and U.S. federal government aerospace and defense markets. |
| 11 | Providence Consulting is a provider of program delivery, systems engineering, and protective security solutions for private sector, U.S. federal, and international government defense and industrial markets. |
| 12 | Fortreum is a provider of cybersecurity and regulatory compliance certification solutions for private sector and U.S. federal government markets. The company specializes in audit, advisory, and technical testing to assist companies in regulated industries with certifications including FedRAMP, CMMC, ISO, PCI, SOC, and several others. |
| 13 | Jet Parts Engineering is a designer of proprietary OEM-alternative parts and repair services for the commercial aerospace industry. The company provides proprietary aftermarket replacement components, known as Parts Manufacturing Approval (PMA) and complementary proprietary component repair services, known as Designated Engineering Representative (DER) repairs. Victor Sierra is a designer and manufacturer of aftermarket PMA parts for the general aviation industry. The company offers door and flight control cables, push-pull controls, and cargo & seat rails. |
| 14 | SEEQC is a developer of superconducting technologies for quantum-based systems in private sector and U.S. federal government aerospace and defense markets. The company's technologies are utilized in scalable faulttolerant quantum computing, quantum communications, and quantum simulators. |
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