February 19, 2019 Update

M&A

Safran S.A. Acquires ElectroMechanical Systems Business From Collins Aerospace
The acquired business primarily consists pilot controls and electrical actuators for aircraft. It also provides a full range of fly-by-wire cockpit control devices, from modular controls to fully integrated pilot-control systems.

FLIR Systems, Inc. to Acquire Arlington Capital Partners Portfolio Company Endeavor Robotics
Endeavor Robotics is a developer of battle-tested, tactical unmanned ground vehicles (UGVs) for the global military, public safety, and critical infrastructure markets.

Mission Ready Solutions, Inc. to Acquire Unifire, Inc.
Unifire is a Service-Disabled Veteran Owned Small Business and an industry leading manufacturer and distributor of over 1.5 million fire, military, emergency, and law enforcement products. The company was founded in 1987.

The Acacia Group Portfolio Company Applied Insight, LLC Acquires Applied Technology Group, Inc. and Stratus Solutions, Inc.
Applied Technology Group, Inc. supports the national security community, with expertise which extends across machine learning, advanced analytics, complex algorithm R&D, deep learning, high-speed data collection and repository building, DevOps, cloud computing and application development.
Stratus Solutions, Inc. is a provider of security, infrastructure, and development operations solutions and services to government and commercial customers.

Advantest Corp. Completes Acquisition of Astronics Corp.’s Semiconductor System Level Test Technology
Astronics Corp. (NasdaqGS: ATRO) completed the sale of the intellectual property and certain assets associated with its semiconductor test business to Advantest Corp. (TSE: 6857) for $100 million in cash.

GDC Technics, Ltd. Announces New Ownership, Shared by Oriole Capital Group, Trive Capital Holdings, LLC and MAZ Aviation
San Antonio, Texas-based GDC Technics Ltd. is an aircraft modification and technology company with extensive capabilities in design, engineering, manufacturing, installation, testing and certification of structural and system modifications for narrowbody and widebody aircraft.

Bristow Group, Inc. and Columbia Helicopters, Inc. Terminate Proposed Transaction
Columbia Helicopters, Inc. is the global leader in heavy-lift helicopter operations and is a provider of maintenance, repair and overhaul services.

Sequoia Holdings Receives Equity Investment from Chart National, L.P.
Sequoia Holdings, Inc. is a provider of software and cloud engineering services for the U.S. intelligence community.

Kitron ASA Completes Acquisition of the Electronics Manufacturing Services (EMS) Division of API Technologies Corp., a Portfolio Company of J.F. Lehman & Co.
API Technologies Electronics Manufacturing Services (EMS) provides manufacturing, testing, and repair services of electronic components and assemblies for original equipment manufacturers (OEMs) and serves customers in the United States.

Turkey’s Kordsa to Acquire Axiom Materials, Inc. From Sorenson Capital
Axiom Materials Inc. is a progressive composite materials manufacturer founded with the intention of combining a quality prepreg, adhesive, and ancillary composite products platform with customer-focused service and forward-thinking design.

A&D News

Northrop Grumman Appoints Chris Deeble as Chief Executive, Australia
Northrop Grumman Corporation (NYSE: NOC) has appointed Chris Deeble, chief executive, Northrop Grumman Australia, responsible for supporting the company’s longstanding programs in Australia, as well as exploring new business pursuits. Deeble will report to Dave Perry, corporate vice president and chief global business officer.

Airbus to Cease Delivery of A380 Airliners by 2021
Airbus SE (Leiden, Netherlands), as part of an announcement regarding orders from Emirates Airlines (Abu Dhabi, UAE), revealed its plan to cease delivery of the A380 airliner in 2021.

Rolls-Royce completes €57 million upgrade of Rauma thruster facility
Rolls-Royce Oy Ab (Rauma, Finland) has completed a multi-million Euro upgrade and refurbishment of its thruster manufacturing plant in Rauma, Finland, consolidating production over a single site, and creating one of the world’s most advanced propulsion facilities.

First Japan Airlines A350 XWB Takes Shape in Final Assembly Line
Final assembly of the first A350-900 for Japan Airlines (JAL) has begun and is taking shape at the Final Assembly Line (FAL) in Toulouse, France. The wing-fuselage junction and the installation of the vertical and horizontal tailplane have been completed.

BAE Systems, AMMROC Sign MoU to Establish MRO Facility in Al Ain, UAE
BAE Systems plc (LSE: BA.L) and The Advanced Military Maintenance Repair and Overhaul Centre (AMMROC) signed a Memorandum of Understanding (MoU) on February 18, 2019 to establish a maintenance, repair and overhaul (MRO) facility in Al Ain, United Arab Emirates (UAE).

Cubic Names IBM and Microsoft Executive Kevin Eagan as Senior Vice President & Chief Digital Officer
Cubic Corporation (NYSE: CUB) today announced the appointment of Kevin Eagan to the role of senior vice president and chief digital officer. Eagan will join Cubic’s executive team based in San Diego, CA, effective March 25 and report to chairman, president and chief executive officer Bradley H. Feldmann.

U.S. Approves Sale of Missile Defense System for Air India One
The USA has agreed to sell two state-of-the-art missile defence systems to Air India One for an estimated cost of USD 190 million, a move that will enhance the security of planes flying the prime minister and the president.

Raytheon Emirates Opens New Headquarters in Abu Dhabi
Raytheon Emirates, a wholly owned subsidiary of Raytheon Company (NYSE: RTN), today opened its headquarters in Al Maqam Tower at Abu Dhabi Global Market Square. The new facility will help Raytheon Emirates develop human capital, industrial partnerships and new technology in the United Arab Emirates in the areas of missile defense, cybersecurity, effectors, and other enabling technologies.

U.S. Government Approves Release of Boeing EA-18G Growler to Finland
Boeing [NYSE: BA] and the U.S. Navy have received U.S. Department of Defense approval to offer the EA-18G Growler to Finland. Previously only Australia had been authorized to purchase the airborne electronic attack (AEA) aircraft.

Northrop Grumman Appoints Om Prakash as Chief Executive, Japan
Northrop Grumman Corporation (NYSE: NOC) has appointed Om Prakash, chief executive, Northrop Grumman Japan, as the company strengthens its partnership with Japan. Prakash will report to Dave Perry, corporate vice president and chief global business officer.

Contracts

NAWCWD Contracts With Raytheon for Sensor System Upgrades for F/A-18 and E/A-18G
On behalf of the U.S. Navy Program Executive Office for Enterprise Information Systems (PEO EIS), Navy Enterprise Resource Planning (Navy ERP) (Arlington, VA), the U.S. Naval Air Warfare Center Weapons Div. (NAWCWD) (China Lake, CA) awarded Raytheon SAS – Intelligence, Surveillance and Reconnaissance Systems (ISRS) (McKinney, TX) a five-year, $88.4 million cost-plus-fixed-fee, ID/IQ contract (N68936-19-D-0001) for sensor system upgrades for F/A-18 and E/A-18G in support of the F/A-18 Integrated Product Team (IPD/Advanced Weapons Laboratory (AWL).

AFLCMC Hill Contracts With Booz Allen for 309th Aircraft Maintenance Group (AMXG) Production Acceptance Certification (PAC)/Work Control Document (WCD) Correlation Requirement
The Air Force Life Cycle Management Center (AFLCMC), Ogden Air Logistics Complex (OO-ALC) (Hill AFB, UT) awarded Booz Allen Hamilton, Inc. (McLean, VA) a $7.1 million firm-fixed-price contract (FA8224-19-C-A005) for the Production Acceptance Certification (PAC)/Work Control Document (WCD) correlation requirement in support of the 309th Aircraft Maintenance Group (AMXG).

ONR Contracts With Seeman Composites for the Machining Center Proposal
The U.S. Office of Naval Research (ONR) (Arlington, VA) awarded Seemann Composites, Inc. (SCI) (Gulfport, MS) a $9.1 million cost-plus-fixed-fee contract (N00014-19-C-2015) for the machining center proposal.

NAWCAD LKE Contracts With Northrop Grumman for AN/ALQ-213(V) MEWS/AN/AAQ-24(V) LAIRCM Systems and Associated Services for the P-8A Aircraft
The U.S. Naval Air Warfare Center Aircraft Div. (NAWCAD LKE) (Lakehurst, NJ) awarded Northrop Grumman Land and Avionics C4ISR Division (Rolling Meadows, IL) a $27.3 million firm-fixed-price ID/IQ contract (N68335-19-D-0023) for the procurement the AN/ALQ-213(V) Electronic Warfare Management System (EWMS) and the AN/AAQ-24(V) Large Aircraft Infrared Countermeasures (LAIRCM) systems and technical data for the P-8A aircraft.

Chorus Aviations Subsidiary Jazz Air Contracts With Bombardier for Multiple CRJ900 Regional Airliners
On behalf of Jazz Air LP (Jazz) (Halifax, Nova Scotia, Canada), Chorus Aviation Inc. awarded Bombardier Commercial Aircraft (Downsview, Ontario, Canada) a $437.0 million contract, based upon list prices, for nine (9) CRJ900 regional airliners.

Emirates Airlines Contracts With Rolls-Royce for Trent 7000 Engines for A330neo Airliners; Trent XWB Engines for A350 Airliners and Trent 900 Engines for A380 Airliners
Under the contract, Rolls-Royce will also provide Trent 900 engines for a further fourteen (14) Airbus A380s, taking the total Emirates Airlines A380 fleet powered by Trent 900 engines to thirty-three (33) aircraft.

NAWCAD Contracts With Vertex Aerospace for Fleet Fighter Jet Services
The U.S. Naval Air Warfare Center Aircraft Division – Pax River (NAWCAD) (Patuxent River, MD) awarded Vertex Aerospace, LLC (Madison, MS) a $23.4 million firm-fixed-price, ID/IQ contract (N00421-19-D-0031) for fleet fighter jet services.

February 11, 2019 Update

KAL Capital Updates

Partner and KAL Co-Founder Ryan Murphy was featured in a MRO-Network interview with Lee Ann Shay on Friday, February 8th. Please see the discussion below or click to view the original posting.

Fast 5: Will The M&A Market For MRO Be As Hot In 2019?

The merger and acquisition appetite in 2018 for aviation aftermarket companies was competitive. KAL Capital Markets advised STS Aviation Group on its equity partnership with the Greenbriar Equity Group that closed in January. Ryan Murphy, a partner at KAL Capital Markets, which specializes in aerospace and defense investment banking services, provides his outlook for MRO M&A activity in 2019.

Lee Ann Shay | Feb 08, 2019

What are the most desirable segments of the MRO business for investors and how do those valuations compare to others?

Based on our experience, the highest valuation within the MRO ecosystem is component MRO, especially ones with either size and scale, or unique capabilities. We’ve seen the large consolidators in the space being driven by private equity quite a bit—StandardAero and Wencor are the two largest acquirers in that space. They have bought a bunch of smaller, $10 million-$100 million businesses, often family owned, and really tried to offer their customer base a one-stop shop, including a variety of ATA chapter repair capabilities.

What kind of multiples are you seeing for companies, such as STS Aviation Group and Ascent Aviation Services, both of which you helped sell?

Multiples are all over the place. Heavy MRO businesses can be in the single-digit EBITA (earnings before interest, taxes and amortization) while larger, very well diversified aviation services businesses tend to tradefor double-digit EBITA multiples. 

How many companies formally looked at investing in STS? How did the process go and how long did it take?

Most of that is confidential, but I can say our processes tended to be a little bit narrower. The STS Aviation owners were looking to partner with an equity group that had more than just capital to offer—they also wanted to leverage aviation relationships and industry expertise.

What’s your forecast for the number of M&A deals in the aviation market in 2019: will it match 2018? How big is the pool of candidate companies to be sold?

We anticipate approximately an equivalent year. There were some larger transactions that moved the needle quite a bit, but generally speaking, we see a lot of the equity groups looking at the OEM cycle and seeing that a lot of the growth is in the rearview mirror. They actually see a lot more potential in the aftermarket.

Are you concerned about potential interest rate increases and how that could affect acquisition appetites?

No, not at the moment. We feel a bigger factor is the amount of dry powder that the private equity community has raised and needs to deploy. We feel that any uptake in interest rates will be mitigated by the fact that quite a bit of money needs to be spent on acquiring privately held businesses. With that said, if interest rates were to double, my answer would be quite a bit different.

Industry News

Embraer Delivers 181 Total Jets in 2018
Embraer (NYSE: ERJ; B3: BOVESPA: EMBR3) delivered a total of 181 jets in 2018. 90 were commercial aircraft and 91 were executive jets (64 light and 27 large). In the fourth quarter of 2018, Embraer delivered 33 commercial jets and 36 executive jets (24 light and 12 large). As of December 31, the firm order backlog totaled USD 16.3 billion.

Northrop Grumman’s Cygnus Spacecraft Departs International Space Station
Northrop Grumman Corporation (NYSE: NOC) announced that its Cygnus spacecraft has departed from the International Space Station after an 81-day stay during the NG-10 mission. The Slingshot CubeSat Deployer System, a new commercial customer for Cygnus, was also installed for its inaugural flight on the spacecraft.

BWXT Joint Venture Awarded Extension at Two NASA Facilities
BWX Technologies, Inc. (NYSE:BWXT) announced that NASA has awarded a contract option on the Consolidated Operations and Maintenance (SACOM) contract held by BWXT subsidiary Syncom Space Services LLC (S3). The SACOM contract is for consolidated maintenance and operations support services at the Stennis Space Center in Hancock County, Mississippi, and the Michoud Assembly Facility in New Orleans, Louisiana.

Safran Inaugurates Advanced Turbine Blades Research Center Near Paris
Safran inaugurated today its new research center for advanced turbine blades used on airplane and helicopter engines at its plant in Gennevilliers, near Paris. The advanced turbine blades research facility is part of the corporate Research & Technology center, Safran Tech. Housed in a building spanning 3,000 square meters (32,400 sq ft), the new research unit is staffed by about 30 engineers and doctoral candidates and fitted with state-of-the-art machinery and equipment.

Littoral Combat Ship 15 (Billings) Delivered to U.S. Navy
Lockheed Martin (NYSE: LMT) and Fincantieri Marinette Marine (FMM) delivered another Littoral Combat Ship, the future USS Billings (LCS 15) to the U.S. Navy.
Billings is the eighth Freedom-variant LCS designed, built and delivered by the Lockheed Martin-led industry team and will be commissioned later this year. LCS 15 will be homeported at Naval Station Mayport, Florida, alongside USS Milwaukee (LCS 5), USS Detroit (LCS 7), USS Little Rock (LCS 9), USS Sioux City (LCS 11) and USS Wichita (LCS 13).

SAIC Names Nathan Rogers as New Chief Information Officer
Science Applications International Corp. (NYSE: SAIC) announced today that Nathan G. Rogers will assume the role of chief information officer effective Feb. 2, reporting to SAIC CEO Tony Moraco. Rogers succeeds Bob Fecteau who retires from the company in April.

M&A

Odyssey Investment Partners, LLC Portfolio Company Aero Precision Holdings, L.P. Acquires Lynx Avionics
Lynx manufactures headsets and intercom systems for aircraft. DAC International, Inc., a subsidiary of Aero Precision Holdings, L.P., a portfolio company of private equity firm Odyssey Investment Partners, LLC, acquired privately held Lynx Avionics.

AE Industrial Partners, LLC Portfolio Company Belcan, LLC Acquires Sitec Design Ltd. and Sitec Recruitment Ltd.
Sitec provides engineering services and technical recruitment services to aerospace, defense, nuclear, and industrial customers in the UK and Europe.

Bombardier, Inc. Completes Acquisition of Global 7500 Aircraft Wing Program From Triumph Group, Inc.
The Global 7500 business jet program entered into service in December 2018. The aircraft has an award-winning bespoke interior featuring a full-size kitchen and four true living spaces. The aircraft has an industry-leading 7,700 nautical mile range and a top speed of Mach 0.925. The acquired operations will be incorporated into Bombardier’s Aerostructures and Engineering Services segment.

Arctic Slope Regional Corp. Acquires K2 Industrial Services, LLC
K2 Industrial Services, LLC is the parent company of KM Plant Services (“KMP”), KM Industrial Services (“KMI”) as well as Mansfield Industrial (“Mansfield”). KMP and KMI provide industrial cleaning services in the Midwest and California, while Mansfield provides multi-craft services, focused in the Gulf South. The companies serve a diverse customer portfolio made up of industrial, oil and gas, power and commercial customers.

Teledyne Technologies, Inc. Completes Acquisition of Scientific Imaging Businesses of Roper Technologies, Inc.
Roper Technologies’s scientific imaging businesses include Princeton Instruments, Photometrics and Lumenera, as well as other brands such as QImaging, which are part of Roper Technologies’ Medical and Scientific Imaging segment. The scientific imaging businesses provide a range of imaging solutions, primarily for life sciences, academic research and customized OEM industrial imaging solutions.

Logistics Management Institute (LMI) Acquires The Tauri Group, LLC
Tauri Group provides analytical consulting with expertise in homeland security and defense.

IPKeys Technologies, LLC Acquires SigmaFlow, LLC
The company provides workflow platforms for the energy sector. SigmaFlow’s Oil & Gas Well Delivery solution provides visibility into drilling plans through rig scheduling and pre-drill workflow, while its Compliance Manager (CM) solution reduces the risk and cost of NERC Compliance for electric utilities with process controls and evidence management.

Contracts

The U.S. Marine Corps Base Camp Lejeune awarded AVMAC LLC (Chesapeake, VA) an $8.7 million firm-fixed-price contract for organizational level (O-Level) aircraft maintenance support.

The U.S. Naval Air Warfare Center Training Systems Div. (NAWCTSD) (Orlando, FL) awarded PAE Global Mission Services (Arlington, VA) a $23.0 million firm-fixed-price, indefinite-delivery/requirements contract for Contractor Instruction, Maintenance, Operation and Training Support (CIMOTS) for the Strategic Sealift Cargo Offload and Discharge Systems (COLDS) in support of Logistics Over the Shore and Joint Logistics Over the Shore (LOTS/JLOTS) and requirements for other government agencies.

The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded General Dynamics NASSCO-Norfolk (Norfolk, VA), on Feb. 1, a $74.7 million firm-fixed-price contract for the fiscal 2019 Chief of Naval Operations (CO) dry-docking selected restricted availability (DSRA) for the USS Arleigh Burke (DDG 51).

Eastern Shipbuilding Group, Inc. (Panama City, FL) awarded Northrop Grumman Maritime Systems (Charlottesville, VA) multiple contracts for production and long lead time materials (LLTM) for the U.S. Coast Guard (USCG) Offshore Patrol Cutter (OPC) Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) and control systems.

DLA Aviation at Philadelphia (Philadelphia, PA) awarded Moog, Inc. (Elma, NY) a $15.5 million firm-fixed-price delivery order under a previously issued basic ordering agreement for electro-mechanical actuators.

The U.S. SPAWAR Systems Center Pacific (SSC Pacific) (San Diego, CA) awarded Kingfisher Systems, Inc. (Falls Church, VA) a $73.3 million cost-plus-fixed-fee contract for advanced cyber support services (ACSS) in support of U.S. Marine Corps Cyberspace Operations Group (MCCOG).

The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded DRS Naval Electronics (Johnstown, PA) a $21.5 million firm-fixed-price modification under a previously awarded contract to exercise options for production of the AN/SPQ-9B radar systems and associated equipment.

Support Systems Associates, Inc. (SSAI) (Melbourne, FL) awarded Elbit Systems of America, LLC (ESA) (Fort Worth, TX) a $22.0 million contract to provide an avionics refresh for the U.S. Air National Guard’s fixed-wing aircraft used for the RC-26B Intelligence, Surveillance and Reconnaissance (ISR) operations.

The U.S. Naval Air Warfare Center Weapons Div. (NAWCWD) (China Lake, CA) awarded Canadian Commercial Corp. (CCC) (Ottawa, ON) an $11.4 million firm-fixed-price, cost-reimbursable, ID/IQ contract for unmanned vehicle target support.

The U.S. Air Force District of Washington (AFDW) awarded Akima Logistics Services LLC (Herndon, VA) a $69.0 million firm-fixed-price contract for fuels and supply services to support the missions of the 11th Wing (WG), 89th Airlift Wing (AW), and their customers.

The U.S. Naval Air Systems Command, Headquarters (NAVAIR HQ) (Patuxent River, MD) awarded Rolls-Royce Corp. (Indianapolis, IN) a $42.0 million firm-fixed-price modification under a previously awarded contract for the procurement of 20 production Marine Turbine (MT7) engines for the Landing Craft, Air Cushion (LCAC) 100 Class craft in support of the Ship to Shore Connector (SSC) program.

February 4, 2019

Industry News

NASA Awards Launch Services Contract for Lucy Mission

NASA has selected United Launch Services LLC (ULS) of Centennial, Colorado, to provide launch services for the agency’s first-ever mission to explore Trojan asteroids. The Lucy mission currently is targeted to launch in October 2021 on an Atlas V 401 rocket from Launch Complex 41 at Cape Canaveral Air Force Station in Florida. With boosts from Earth’s gravity, the spacecraft will embark on a 12-year journey to study primitive asteroids orbiting the Sun in tandem with Jupiter.

GKN Fokker and Lockheed Martin Aeronautics Collaborating on Future F-35 Long Term Agreement

GKN Fokker and Lockheed Martin Aeronautics confirmed via a protocol document the continuation of GKN Fokker’s efforts on F-35 Lightning II Joint Strike Fighter specific to the manufacturing of Flaperons, Inflight Opening Doors (IFOD), Arresting Gear, and Electrical Wiring and Interconnection Systems (EWIS) content. Production will take place at GKN Fokker’s sites in The Netherlands and Turkey with delivery taking place over the next five years.

American Airlines Takes Delivery of Its First A321neo

American Airlines has taken delivery of the first of 100 A321neos on order from Airbus, powered by CFM International LEAP-1A engines. The aircraft, MSN8647, departed Hamburg early Friday for the trans-Atlantic ferry flight to Pittsburgh where American’s technicians will get the A321neo ready for customer flights.

Republic of Korea Air Force Receives First Airbus A330 MRTT

The Republic of Korea Air Force (ROKAF) has taken delivery of its first Airbus A330 Multi Role Tanker Transport (MRTT) aircraft. The new-generation A330 MRTT extends the endurance and range of the ROKAF’s fighter aircraft, and provides the service with strategic transport capability for passengers and freight.

Lockheed Martin And Royal Netherlands Air Force Celebrate Rollout Of The First Dutch Operational F-35

Dutch and American officials celebrated the roll out of the first operational F-35A Lightning II for the Royal Netherlands Air Force (RNLAF) at Lockheed Martin (NYSE: LMT) in Fort Worth, Texas.

Huntington Ingalls Industries’ Newport News Shipbuilding Division Delivers First Transformational 3-D Metal Part For Installation On Nuclear-Powered Aircraft Carrier

The milestone was recognized during a brief ceremony at Naval Station Norfolk. The part was presented to Rear Adm. Lorin Selby, Naval Sea Systems Command’s chief engineer and deputy commander for ship design, integration, and naval engineering. The part—a piping assembly—will be installed on the aircraft carrier USS Harry S. Truman (CVN 75) and evaluated for a one-year period.

Kratos Successfully Commands Spacecraft Using the Air Force’s Enterprise Ground Services Framework

The Kratos demonstration supports the Air Force’s strategic approach to implementing a common service-based satellite ground infrastructure that will evolve current satellite ground systems into one platform. EGS is a critical enabling technology that is focused on a sustainable, resilient space architecture that can respond to emerging threats and protect space-based assets.

Collins Aerospace in France Earns FRA 21J Certification for Military Airborne Platforms

Collins Aerospace in France has been awarded FRA 21J design organization approval for military airworthiness by the French defence procurement agency, Direction Générale de l’Armement (DGA). This certification demonstrates that Collins Aerospace follows robust processes for performing design changes and repairs on avionics and structures for military airborne platforms.

GE H Series Begins Operation in Kazakhstan

Aircraft Industries’ Let L-410, powered by GE H Series turboprop engines, has begun commercial operations in Kazakhstan with Kazakh-based Zhetysu Airline.

 

M&A

Arlington Capital Partners Acquires Fabrications Business of Triumph Group, Inc.

The transaction consists of four companies, together offering forming, assembly and special processing solutions such as stretch, hydro, titanium hot/super plastic forming, bonding, bulge and drop hammer forming as well as chemical milling, welding, auto riveting, titanium Sol-Gel, anodizing and other coating processes.

Web Industries, Inc. Acquires France-based Omega Systèmes

Omega provides cutting services for flexible and semi-rigid materials for the textile, automotive, defense and aerospace industries.

Levine Leichtman Capital Partners and Management Acquire SK AeroSafety Group From Apax Partners

SK AeroSafety Group provides inspection, testing, maintenance and repair of critical passenger safety equipment found on all commercial and private aircraft worldwide.

Audax Private Equity Portfolio Company RelaDyne, LLC Acquires CIRCOR Reliability Services Business, Previously COT-PURITECH

The business provides critical lubrication management, chemical flushing services, and oil misting equipment to leading customers in Oil and Gas, Refining, Petrochemical, Power Generation, Industrial, Military and Maritime markets. The business was acquired by CIRCOR International as part of the acquisition of the Colfax Fluid Handling Business completed in December 2017.

Mercury Systems, Inc. Acquires GECO Avionics, LLC

Provides design and manufacturing for safety-critical avionics and mission computing solutions. GECO’s DO-254 certified hardware solutions include mission processors, airborne displays, video processing and aviation networking.

CACI International, Inc. to Acquire LGS Innovations, LLC From Madison Dearborn Partners and CoVant Management; Also Acquires Mastodon Design, LLC

Provides real-time spectrum management, C4ISR, and cyber products and solutions to the Intelligence Community (IC) and Department of Defense (DoD).

Cayuse Technologies, Inc., a Subsidiary of Confederated Tribes of The Umatilla Indian Reservation, Acquires Native Hawaiian Veterans, LLC

Native Hawaiian Veterans LLC provides services, solutions, and products in the areas of homeland security, emergency management, information technology, communication equipment, professional staff augmentation, munitions and explosives of concern (MEC) remediation, and strategic communications/creative services.

Whelen Engineering Company, Inc. Acquires LoPresti Aviation

Whelen Engineering designs and manufactures powerful warning lights, white illumination lighting, sirens, controllers, and high-powered warning systems for Automotive, Aviation, and Mass Notification industries worldwide.

Tyler Technologies, Inc. to Acquire MicroPact, Inc. From Arlington Capital Partners and Enlightenment Capital

Provides specialized, vertically oriented case management and business process management (BPM) applications for government.

MKS Instruments, Inc. Completes Acquisition of Electro Scientific Industries, Inc.

Provides laser-based manufacturing solutions for the microtechnology industry..The company’s manufacturing systems are designed to enable manufacturers of electronic components and devices to improve their production capabilities and commercialize technologies through laser processing.

Contracts

DLA Land and Maritime Contracts With Bren-Tronics for Storage Batteries

DLA Land and Maritime (Columbus, OH) awarded Bren-Tronics, Inc. (Commack, NY) a maximum $9.8 million firm-fixed-price contract (SPE7L7-19-C-0005) for storage batteries (NSN: 6140-01-490-4316, P/N: BT-70791A).

Army ACC_RSA Contracts With SRC Inc. for the Low, Slow Small Unmanned Aerial Vehicle Integrated Defeat System (LIDS)

The U.S. Army Contracting Command – Redstone (ACC-RSA) (Redstone Arsenal, AL) awarded SRC, Inc. (North Syracuse, NY) a $108.2 million cost-plus-fixed-fee contract (W31P4Q-19-C-0005) for the Low, Slow Small Unmanned Aerial Vehicle Integrated Defeat Systems (LIDS) in support of the Counter-Rocket Artillery Mortar (C-RAM) Program Directorate (PD).

USTRANSCOM Contracts With Schuyler Line Navigation Company for Naval Station Guantanamo Bay Sealift Transportation Services

The U.S. Transportation Command (Joint Services) (USTRANSCOM) (Scott AFB, IL) awarded Schuyler Line Navigation Company, LLC (Annapolis, MD) a $39.9 million fixed-price with economic price adjustment, indefinite delivery/requirements contract (HTC711-19-D-W001) for sealift transportation services.

NAVAIR Mods Contract With Lockheed Martin for 4,320 Laser Guided Training Rounds (LGTRs)

The U.S. Naval Air Systems Command, Headquarters (NAVAIR HQ) (Patuxent River, MD) awarded Lockheed Martin Missiles and Fire Control – Archbald Manufacturing Operations (Archbald, PA) a $16.1 million firm-fixed-priced modification (P00005) under a previously awarded contract (N00019-17-C-0022) for the procurement of 4,320 Laser BDU-59B/B Laser Guided Training Rounds (LGTRs).

NAVSEA Mods Contract With Lockheed Martin for Aegis Ballistic Missile Defense (BMD) 4.0.2 Equipment

The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded Lockheed Martin Rotary and Mission Systems (RMS) – Integrated Warfare Systems and Sensors Division (Moorestown, NJ) a $10.9 million fixed-price incentive-firm modification under a previously awarded contract (N00024-14-C-5106) to exercise options for AEGIS Ballistic Missile Defense (BMD) 4.0.2 equipment for Shipset 23 and BMD spares.

NAWCTSD Contracts With Boeing Strike for the T-45 Service Life Extension Program (SLEP) Phase II

The U.S. Naval Air Warfare Center Training Systems Div. (NAWCTSD) (Orlando, FL) awarded Boeing Strike, Surveillance and Mobility (St. Louis, MO) a $56.8 million cost-plus-fixed-fee, ID/IQ contract (N61340-19-D-0003) for the T-45 Service Life Extension Program (SLEP) Phase II.

AFLCMC Warner Robins Contracts With Honeywell for C-5 Honeywell Software and Engineering Support (HSES)

The Air Force Life Cycle Management Center (AFLCMC), Warner Robins Air Logistics Complex (WR-ALC) (Warner Robins AFB, GA) awarded Honeywell Defense Avionics Systems (Albuquerque, NM) an $85.7 million ID/IQ contract (FA8525-19-D-0002) for C-5 Honeywell software and engineering support (HSES) in support of the C-5 aircraft.

USAF AFSAC Contracts With Sallyport Global Holdings for Balad Air Base Operating Support, Base Life Support, and Security Services for Iraqi FMS F-16 Aircraft Program

The U.S. Air Force Security Assistance Cooperation Directorate (AFSAC) (Wright-Patterson AFB, OH) awarded Sallyport Global Holdings, Inc. (Reston, VA) a $400.0 million cost-plus-fixed-fee undefinitized contract action (FA8630-19-C-5004) to provide base operations support, base life support, and security services in support of the Iraq F-16 program.

AFLCMC Warner Robins Contracts With Goodrich for HH-60G/UH-1H Winches & Hoists Repair/Overhaul

The Air Force Life Cycle Management Center (AFLCMC), Warner Robins Air Logistics Complex (WR-ALC) (Warner Robins AFB, GA) awarded Collins Aerospace Mission Systems SIS – De-icing, Rescue and Specialty Systems (DRSS) Brea (Brea, CA) an estimated $27.1 million firm-fixed-price, indefinite delivery/requirements contract (FA8524-19-D-0001) for repairing and overhauling of aircraft drum winches & hoists applicable to the HH-60G and UH-1N Helicopters.

AF ACC 49 CONS Awards Eight Contracts for Maintenance, Repair and Construction Work at Holloman AFB, NM

The U.S. Air Force ACC, 49th Contracting Squadron (49 CONS) (Holloman AFB, NM) awarded eight, five-year, multiple award, ID/IQ contracts, with an aggregate ceiling value of $90.0 million, to provide a broad range of maintenance, repair And construction work At Holloman Air Force Base, NM.

NAVAIR HQ Mods Contract With Northrop Grumman for Five Fire Scout MQ-8C Unmanned Air Systems (UASs)

The U.S. Naval Air Systems Command, Headquarters (NAVAIR HQ) (Patuxent River, MD) awarded Northrop Grumman Space & Mission Systems Corp. (San Diego, CA) a $55.1 million fixed-price-incentive-firm target modification (P00011) under a previously awarded contract (N00019-16-C-0055) for the procurement of five Fire Scout MQ-8C unmanned air systems (UASs) and two lightweight fuel cells.

SkyWest Contracts With Embraer for Nine E175 Jets

SkyWest, Inc. (St. George, UT) awarded Embraer Commercial Aviation (Sao Jose dos Campos, Brazil) a firm order for nine E175 jets, with deliveries expected to begin in 2019.

Army ACC-RSA Contracts With DRS for Mobile-Low, Slow, Small Unmanned Aircraft System (UAS) Integrated Defeat System (M-LIDS) Development

The U.S. Army Contracting Command – Redstone (ACC-RSA) (Redstone Arsenal, AL) awarded DRS Land Systems (St. Louis, MO) a $74.9 million cost-plus-fixed-fee contract(W31P4Q-19-C-0006) for the rapid development, deployment, and support of the Mobile-Low, Slow, Small Unmanned Aircraft System (UAS) Integrated Defeat System (M-LIDS).

NSWCPD Contracts With Collins Aerospace for Submarine Air Revitalization Engineering Services and On-Site Support Services

The U.S. Naval Surface Warfare Center, Philadelphia Div. (NSWCPD) (Philadelphia, PA) awarded Collins Aerospace Systems, Power and Controls (Windsor Locks, CT) a $27.5 million cost-plus-fixed-fee, ID/IQ contract (N64498-19-D-4000) for submarine air revitalization engineering services and on-site support services in support of the Submarine Life Support and Ventilation Systems Branch (Code 416).

January 28, 2019 Update

Industry News

Collins Aerospace in France Earns FRA 21J Certification for Military Airborne Platforms
FRA 21J design organization approval is a first step toward achieving European Military Airworthiness Requirements (EMAR) 21 certification of military aircraft and related products, parts and appliances. EMAR certification recognizes capabilities across approximately 30 European member states.

GE H Series Begins Operation in Kazakhstan
Aircraft Industries’ Let L-410, powered by GE H Series turboprop engines, has begun commercial operations in Kazakhstan with Kazakh-based Zhetysu Airline. GE’s H Series is a family of turboprop engines offering a wide range of power and performance customized for business and general aviation aircraft.

Cubic Updates Manufacturing Facility to Accommodate Production of Air Combat Training Solutions
announced that it is completing the renovation and upgrade of its San Diego manufacturing facility to accommodate the production and testing of components for pods, ground subsystems and secure components for its live, virtual and constructive (LVC) air combat training systems.

Collins Aerospace Signs Agreement to Provide Iridium CertusSM Terminals on Boeing 737 Max and 777X Airplanes
The solution will support safety services with two voice channels and ACARS/CMU datalink simultaneously providing cockpit voice and data connectivity. It will also provide an easy upgrade path from currently installed Collins Iridium solutions with a common antenna hole pattern, tray size and modest connector re-pinning.
The Iridium Certus SATCOM terminal will be the first forward-fit Iridium Certus SATCOM terminal to be certified for the Boeing 737 MAX and 777X — with certification expected in 2021.

Mercury Systems Ships First Space-Qualified Commercial Solid State Drives for Low Earth Orbit Satellite Application
Mercury announced the first prototype shipments of the Company’s 3U TRRUST-Stor™ VPX RT space-qualified secure solid-state drives (SSD) to two leading suppliers of low Earth orbit (LEO) satellites. Designed to operate reliably in high radiation environments, this device is the first commercial SSD leveraging VITA 78 SpaceVPX™ standards to reduce customer cost and mitigate program risk.

Boeing Autonomous Passenger Air Vehicle Completes First Flight
Boeing NeXt, which leads the company’s urban air mobility efforts, utilized Boeing subsidiary Aurora Flight Sciences to design and develop the electric vertical takeoff and landing (eVTOL) aircraft and will continue testing to advance the safety and reliability of on-demand autonomous air transportation. The PAV prototype completed a controlled takeoff, hover and landing during the flight, which tested the vehicle’s autonomous functions and ground control systems. Future flights will test forward, wing-borne flight, as well as the transition phase between vertical and forward-flight modes.

Cebu Pacific Takes Delivery of Its First A321neo
The new addition complements the Manila-based airline’s Airbus fleet, which currently includes 43 A320 Family aircraft and eight A330-300 widebodies. Cebu Pacific has ordered 32 A321neo aircraft directly from Airbus, and will receive another five A320neo leased from Dublin-based Avolon. These will support the carrier’s expansion and fleet renewal program.

M&A

Rheinmetall AG to Acquire majority stake in BAE Systems plc’s Land Systems Business
Maintains and upgrades MOD and Army vehicles and bridging systems. The business manufactured and built the Challenger 2 Main Battle Tank and the Warrior, Terrier and prototypes of the BOXER vehicles, as well as the Trojan, Terrier, Warrior, military bridging and the AS90 self-propelled artillery system.

Dassault Aviation to Acquire ExecuJet Maintenance Activities From Luxaviation Group
ExecuJet provides maintenance support capabilities for a diverse collection of aircraft types in 42 countries throughout the world. The maintenance business being sold to Dassault Aviation consists of its maintenance (MRO) centers, its Fixed Base Operations (FBO) as well as its aircraft management activities.

Enlightenment Capital Acquires System High Corp.
System High Corp. provides proactive protection (P2), security engineering, counterintelligence, and cybersecurity solutions, for government and commercial markets.

The Jordan Company, L.P. Portfolio Company VT Group Acquires National Technologies Associates, Inc. (NTA)
NTA specializes in program management, engineering, and logistics services for military aviation platforms and systems. Founded in 1981, NTA provides research, development, test and evaluation (RDT&E) support and a full spectrum of mission-critical maintenance and sustainment services for fixed and rotary-wing, tilt-rotor, and unmanned aircraft.

digEcor Completes Acquisition of Commercial IFE Business from Collins Aerospace – Re-branding to Burrana Following the Transaction
IFE business consists of the PAVES family of seat back and overhead solutions, as well as PAVES™ On-demand, Total Entertainment System (TES), Enhanced Total Entertainment System (ETES) and content services.

Henry Schein, Inc. to Acquire North American Rescue, LLC (NAR) From Blue Wolf Capital Partners, LLC
NAR provides survivability and casualty-care medical products to the defense and public-safety markets.

NWI Holdings, an Affiliate of TECT Aerospace and TECT Power, to Acquire the Metallics Machining Business of Triumph Group, Inc.
The transaction is to include Triumph Structures – Kansas City, Inc., part of Triumph Aerostructures, LLC’s Vought Aircraft Division, Triumph Structures – Wichita, Inc., part of Triumph’s Aerospace Structures Group, Triumph Gear Systems – Toronto, ULC, which reports to Park City, Utah-based Triumph Gear Systems, Inc., Triumph Northwest (The Triumph Group Operations, Inc.), part of Triumph’s Product Support Group. The businesses provide vertically integrated assemblies, high velocity machining of monolithic components and machining of hard metal components used to manufacturer a wide variety of aerostructures.

FLIR Systems, Inc. Acquires Aeryon Labs, Inc. From Summit Partners
Aeryon Labs Inc. designs and manufactures high-performance unmanned aerial systems (UAS) for the global military, public safety, and critical infrastructure markets.

ASGN, Inc. Acquires DHA Group, Inc.
DHA Group provides mobility, cybersecurity, cloud and IT services to the Federal Bureau of Investigation (FBI) and other federal customers. DHA will become part of ASGN’s ECS Segment.

Contracts

Army ACC_RSA Contracts With SRC Inc. for the Low, Slow Small Unmanned Aerial Vehicle Integrated Defeat System (LIDS)
The contractor will provide continued development, production, integration, spares, delivery, deployment and contractor logistics support (CLS) for the LIDS.
Work will be performed in Syracuse, NY, with an estimated date of completion by Jan. 30, 2020. Fiscal 2019 research, development, test and evaluation; operations and maintenance, Army; and other procurement, Army funds in the combined amount of $53,022,699 were obligated at the time of the award.

NGA Awards MACSS Task Order to BAE Systems for Full-Motion Video (FMV) Analytic Support
BAE Systems will continue providing Full-Motion Video (FMV) advanced analytic services, training, and intelligence production support. BAE Systems will also stand up a new Performance Innovation Council to introduce NGA leaders to new FMV services, software, systems, platforms, and sensors developed by BAE Systems and its program team, made up of several industry leading intelligence and technology companies.

Pratt & Whitney Contracts With Meggitt for the Supply of Parts for F135 and F119 Engines
A 10-year global agreement valued at around $750.0 million to continue the supply of advanced composite components for the F119 and F135 engines which power the F-22 Raptor and F-35 Lightning II aircraft.

NAVAIR HQ Mods Contract With General Atomics for Electromagnetic Aircraft Launch System (EMALS) Spare Parts
A $19.7 million firm-fixed-price delivery order (N00019-19-F-2406) under a previously issued basic ordering agreement (N00019-16-G-0006) for the manufacture, assembly, inspection, integration, test and delivery of Electromagnetic Aircraft Launch System (EMALS) spare parts in support of the CVN 78 prior to the Advanced Arresting Gear and EMALS material support dates.

Navy SPAWAR HQ Contracts With Thales Defense and Security for High Frequency Distribution Amplifier Group (HFDAG) System Components/Services
A $30.9 million ID/IQ contract (N00039-19-D-0001) for high frequency (HF) components used in the High Frequency Distribution Amplifier Group (HFDAG) system in support of the Program Executive Officer for Command, Control, Communications, Computers, and Intelligence (PEO C4I), Communication Program Office (PMW/A 170).

DLA Aviation at Philadelphia Mods Contract With Collins Aerospace for 151 F/A-18E Fluid Pressure Regulating Valves
A $5.0 million firm-fixed-price delivery order (SPRPA1-19-F-L306) under a previously issued basic ordering agreement (SPRPA1-13-G-001X) for 151 fluid pressure regulating valves (NSN: 4810-01-469-1460, P/N: 814201-8) applicable to the F/A-18E aircraft.

NAVAIR HQ Mods Contract With Boeing for 19 P-8A Lot 10 Aircraft and Services
A $2.45 billion firm-fixed-price modification under a previously awarded contract (N00019-14-C-0067) for the production and delivery of P-8A Lot 10 aircraft for the Navy and the governments of the U.K. and Norway.

Navy MSFSC Contracts With Ocean Ships Inc. for the Operation and Maintenance (O&M) of Two Expeditionary Transfer Dock (ESD) Vessels
A $119.0 million firm-fixed-price contract (N32205-19-C-3003) for the operation and maintenance (O&M) of two Expeditionary Transfer Dock (ESD) vessels (USNS Montford Point (T-ESD 1) and USNS John Glenn (T-ESD 2)).

NAVAIR HQ Contracts With Rolls-Royce for T56-A-427 Engine Maintenance on E-2 Aircraft
A $26.3 million firm-fixed-price, indefinite delivery/requirements contract (N00019-19-D-0024) for the depot repair of T56-A-427 engines used on E-2 Hawkeye aircraft in support of the E-2/C-2 Tactical Data System Program Office (PMA 231).

AFLCMC Wright-Patterson Contracts With USU Space Dynamics Laboratory for Global Hawk Tasking, Collecting, Processing, Exploitation, and Dissemination (TCPED) Capability for FMS to Korea
A $18.3 million undefinitized contract action (FA8620-19-C-1002) for the tasking, collecting, processing, exploitation, and dissemination (TCPED) capability to support the Republic of Korea (ROK) Global Hawk program.

Press Release: KAL Capital Markets Advises On Four Aerospace and Defense Transactions in 2018

Please see our official press release here

LONG BEACH, CALIF. (PRWEB) JANUARY 25, 2019

KAL Capital Markets LLC (KAL Capital), an aerospace and defense investment bank, is pleased to announce that it advised on four sell-side transactions in 2018.

“We increased momentum in our sell-side advisory business in 2018, seeing strong interest from international and domestic strategic acquirers as well as the private equity market across the board,” commented Ryan Murphy. “Though the regulatory requirements for cross-border transactions tightened dramatically, our real-time knowledge of the approval process helped our clients ensure access to those buyers remained intact,” he followed when asked about any challenges in obtaining regulatory approval for proprietary motion control products manufacturer Beaver Aerospace and Defense’s sale to Heroux-Devtek.

When asked about KAL Capital’s outlook for 2019, Trevor Bohn replied, “I think the amount of dry powder companies and investors possess remains near record levels which should provide fundamental support for activity and strong valuations for the foreseeable future. If you reflect on some of the terms of the liquidity we created for California Brazing with Trive Capital or STS Aviation Group with Greenbriar Equity, I’d expect access to capital for privately held clients will remain open.”

KAL Capital’s four 2018 transactions included the advising of Beaver Aerospace and Defense, Mountain Secure Systems, California Brazing, and STS Aviation Group.

Founded by long-term partners Trevor Bohn and Ryan Murphy, KAL Capital serves entrepreneurs and private equity fund managers with companies in the middle market. The firm’s professionals assist clientele on all aspects of mergers, acquisitions and accessing the capital markets, with a focus on the Aerospace and Defense and Industrial Growth sectors.

For additional information on KAL Capital’s transactions, professionals or perspectives, please visit the firm’s website at http://www.kalcapitalmarkets.com

ABOUT KAL Capital
KAL Capital Markets is a boutique aerospace investment banking company that advises middle-market clients on mergers, acquisitions, and accessing the capital markets. The firm’s professionals have an exceptional track record, rooted in deep relationships and experience in several industry verticals, with a focus on companies in the Aerospace, Defense and Industrial Growth sectors. For additional information, please visit KAL Capital’s website at http://www.kalcapitalmarkets.com.

January 22, 2019 Update

Industry News

U.S. Navy Commissions Littoral Combat Ship 13 – LCS 13, Wichita
This milestone places the Lockheed Martin (NYSE: LMT)- built ship into active service. 

A220 Airliner Wins Approval from Transport Canada for 180 Minutes ETOPS Capability
The A220 has received 180-minute extended operations (ETOPS) approval from the Canadian civil aviation authority, Transport Canada.

Persistent Systems Launches Partnership of Wave Relay® Ecosystem
Persistent Systems, LLC announced the launch of the Wave Relay® Ecosystem, an alliance of unmanned systems and sensor companies working together to deliver a networked battlefield to warfighters. Partners include: Insitu (a Boeing Company), QinetiQ North America, Endeavor Robotics, Martin UAV, and others.

Raytheon Engages in Mentoring Agreement with Phoenix Products, Inc.
Raytheon Company (NYSE: RTN) and Kentucky-based Phoenix Products, Inc. signed a U.S. Department of Defense Mentor-Protégé agreement to produce Naval Strike Missile, or NSM, transport containers under a $1.6 million U.S. Navy contract. 

The First Triumph KC-46A Tanker Was Accepted by the U.S. Air Force
U.S. Air Force has accepted the first Boeing KC-46A Pegasus tanker aircraft, setting the stage for the aircraft’s delivery to McConnell Air Force Base, in Wichita, Kansas in the coming weeks.

Boeing Makes Investment in Isotropic Systems Ltd.
Isotropic Systems Ltd. is a London-based startup pioneering next-generation solutions enabling high throughput satellites to deliver mass-market applications

Saab Launches Laser Warning System for Land and Naval Applications in U.S. Market
 
Relativity Wins Direct Contract for Launch Site at Cape Canaveral from the U.S. Air Force
The Autonomous Rocket Factory Becomes the First Venture-backed Company to Be Granted an Agreement for Historic Launch Complex 16 from the U.S. Air Force.

Lufthansa Technik and FADEC Alliance Sign Agreement for LEAP Engine Asset Availability
FADEC Alliance, a joint venture between GE Aviation and FADEC International, has signed a 25-year agreement with Lufthansa Technik to provide Full Authority Digital Engine Controls (FADEC) asset availability support for LEAP engines globally. Lufthansa Technik and FADEC Alliance will use the engine controls for support agreements, loans, and exchanges across their global airline customer bases to bring a full selection of asset management services to the commercial transport industry. 

Construction begins on Airbus’ U.S. A220 Manufacturing Facility
Airbus’ manufacturing growth in the United States advanced another step today in Mobile, Alabama, as construction of the company’s A220 Manufacturing Facility officially launched with a groundbreaking ceremony. The assembly line will satisfy the strong and growing U.S. demand for the A220 aircraft, the newest offering in Airbus’ commercial aircraft product line.

OneWeb Satellites Has Shipped First Satellites for the Oneweb Constellation
The first launch of the mega constellation is scheduled for 19 February 2019 on a Soyuz rocket – the beginning of a long series. 

United Launch Alliance Successfully Launches NROL-71
A United Launch Alliance (ULA) Delta IV Heavy rocket carrying a critical payload for the National Reconnaissance Office (NRO) denoted NROL-71 lifted off from Space Launch Complex-6 on Jan. 19 at 11:10 a.m. PST. The mission is in support of our country’s national defense. 

M&A

Culmen International, LLC Acquires Centrifuge Systems, Inc.
Centrifuge Systems is a provider of next-generation big data business intelligence and visualization software. 

ETL Systems Ltd acquired privately held Atlantic Microwave Ltd. 
Atlantic Microwave manufactures and supplies RF and Microwave equipment, components and interconnects to the satcom, telecommunications, broadcasting, aerospace, defence and scientific research industries.

Grand Traverse Band’s Economic Arm Acquires Bay Shore Steel Works, LLC (BSSW)
Bay Shore Steel Works is a process engineering, fabricating, machining, and finishing services company with significant contracts from the U.S. military for armor plating. 

The Gores Group, LLC Portfolio Company TurbineAero, Inc. Acquires Triumph Group’s APU Repair Product Line
APU Repair Product Line (RPL) of TASA provides repair services for APU component parts.

Advanced Cooling Technologies, Inc. (ACT) acquired the Precision Cooling Business (PCB) of Parker Hannifin Corp. (NYSE: PH)
Precision Cooling Business of PH is a leading supplier of Pumped Two Phase Cooling products for power electronics applications.

Huntington Ingalls Industries, Inc. (NYSE: HII) entered into an agreement to acquire privately held Fulcrum IT Services, LLC from private equity firms Boyne Capital Partners and Grindstone Partners, LLC. 
Fulcrum IT is an information technology and government consulting company. Core areas include Advanced Technology, Cyber, Information Operations, Intelligence Operations, C5ISR, and Healthcare Systems. 

Dassault Aviation to Acquire ExecuJet Maintenance Activities From Luxaviation Group
ExecuJet provides maintenance support capabilities for a diverse collection of aircraft types in 42 countries throughout the world.

Contracts

NAVSEA Contracts With Raytheon for Dual Band Radar (DBR) System Design Agent Technical Engineering Support Efforts
The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded Raytheon Integrated Defense Systems (IDS) (Tewksbury, MA) a $98.8 million cost-plus-fixed fee, cost-only contract (N00024-19-C-5509) for Dual Band Radar (DBR) design agent technical engineering support efforts in support of the U.S. Navy PEO Integrated Warfare Systems (PEO IWS), Above Water Sensors (PEO IWS 2.0).

DLA Aviation Contracts With Bell Boeing JPO for V-22/MV-22/CV-22 Performance Based Logistics (PBL) and Engineering Support
DLA Aviation (Richmond, VA) awarded Bell Boeing Joint Project Office (Amarillo, TX) an estimated $143.9 million firm-fixed-price, indefinite delivery/requirements contract (SPE4AX-19-D-9410) for performance based logistics (PBL) and engineering support for the V-22 platform.

NAVAIR HQ Mods Contract With Bell Helicopter for 25 Lot 16 AH-1Z Aircraft and 25 Stores Control Units
Work will be performed in Fort Worth, TX (60 percent); and Amarillo, TX (40 percent), with an estimated date of completion in January 2022. Fiscal 2018 aircraft procurement (Navy) funds in the amount of $439,563,841 will be obligated at time of award, none of which will expire at the end of the current fiscal year.

Mercury Systems Receives Order for Rugged Servers to be Used in an On-The-Move Tactical Communications Application
An undisclosed defense prime contractor awarded Mercury Systems, Inc. (Andover, MA) a $7.0 million order for rugged servers to be used in an on-the-move tactical communications application.

Lockheed Martin Contracts With Collins Aerospace for X-59 QueSST Low-Boom Flight Demonstration (LBFD) Aircraft Avionics
Lockheed Martin Aeronautics Co., Advanced Development Programs (ADP) (Skunk Works) (Palmdale, CA) awarded Collins Aerospace Systems, Business and Regional Systems (Cedar Rapids, IA) a contract of undisclosed value to provide avionics for the new X-59 Quiet Supersonic Technology (QueSST) aircraft.

Coast Guard Awards Nine Contracts for Nationwide Environmental (ENV) Engineering Services
The U.S. Coast Guard Shore Maintenance Command (SMC), Facilities Design and Construction (FD&CC) Detachment (Seattle, WA) awarded nine, ten-year, multiple award, task order, firm fixed price, ID/IQ contracts, with a value of $75.0 million, for an enterprise-wide program to provide prompt engineering services and other environmental services worldwide.

NAVSEA Mods Contract With Lockheed Martin for AN/SQQ-89A(V)15 Surface Ship Undersea Warfare System (UWS) Production
The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded Lockheed Martin RMS – C4ISR and Undersea Systems and Sensors (C4USS) (Manassas, VA) $77.8 million cost-plus-incentive-fee, fixed-price-incentive, cost-only modification under a previously awarded contract (N00024-13-C-5225) for production of the Navy’s AN/SQQ-89A(V)15 Surface Ship Undersea Warfare System (UWS).

United Airlines Contracts With Boeing for 24 737 MAX and Four 777 Airliners
United Airlines (Elk Grove Township, IL) awarded Boeing Commercial Airplanes Group, Manufacturing (Renton, WA) an order for 24 additional 737 MAX jets and four more 777-300ER (Extended Range) airplanes last year.

Mercury Systems Receives Contract for Integrated Subsystems for Advanced Naval Electronic Support Application
An undisclosed defense prime contractor awarded Mercury Systems, Inc. (Andover, MA) a $9.8 million follow-on order for integrated radio frequency (RF) and digital subsystems for an advanced naval electronic support application.

Navy PHNSY & IMF Mods Contract With BAE Systems for USS Halsey (DDG 97) Surface Incremental Availability (SIA)
The Pearl Harbor Naval Shipyard (PHNSY) & Intermediate Maintenance Facility (IMF) (Joint Base Pearl Harbor, HI) awarded BAE Systems U.S. Ship Repair and Modernization – Hawaii Shipyards (Honolulu, HI) a $9.6 million undefinitized contract action under a previously awarded contract (N00024-14-C-4412) for scheduled Surface Incremental Availability (SIA) on USS Halsey (DDG 97).

NAVSUP FLC Norfolk – Philadelphia Contracts With URS Federal Services for Okinawa Third Party Logistics (3PL) Support Services/HAZMAT Supplies
The NAVSUP Fleet Logistics Center (FLC) Norfolk – Philadelphia Detachment (Philadelphia, PA) awarded URS Federal Services, Inc., an AECOM Company (Germantown, MD) a $39.0 million firm-fixed-price, ID/IQ contract (N00189-19-D-0001) to provide third party logistics (3PL) support services and hazardous material (HAZMAT) supplies as required by Chief of Naval Operations (CNO) N45 and tenant Navy commands in Okinawa, Japan.

KAL Capital Year in Review 2018

Dear Friends,

We are pleased to present you with our 2018 Year in Review report. KAL Capital Markets finished the year with four closed transactions, all staying true to our core competency of exclusively advising firms within the greater aerospace and defense supply chain.

The transactions represented a broad mix of both business types as well as buyer profiles. Our clients for 2018 encompassed everything from a leading provider of aftermarket services (STS Aviation) to a manufacturer of proprietary motion control products (Beaver Aerospace). We worked diligently to provide our clients access to both international strategic buyers (Heroux-Devtek) as well as blue-chip, aerospace-focused private equity sponsors.

For the broader market, the close of 2018 was characterized by equity market volatility which overwhelmed financial headlines with a rather ambiguously-sourced pessimism. Diving into primary operations of key A&D OEMs like Boeing and Airbus the supply chain data tells a different story. Boeing and Airbus both wrapped up 2018 with record high annual aircraft deliveries – Airbus: 800, Boeing: 806. While the record high delivery numbers provide their own evidence of successful supply chain evolution and growth, the ratio of deliveries to current backlog for the OEMs implies long-lasting opportunities for the hundreds of suppliers throughout all tiers of the supply chain. At the time of this report Boeing 737 posts a backlog of 4,708!

Significant passenger travel demand in a time of globalization is a root cause for the ramped production rates, and with new aircraft and more flights we’ve witnessed a parallel demand for aftermarket and airline services in 2018.

Predicting 2019 M&A levels is a fool’s errand, but we will venture to say that, barring a recession, valuations and activity will remain high given the strong underlying growth dynamics of both the commercial aerospace as well as the defense end-markets.

As always, we encourage your thoughts and questions and hope to hear from you soon.

Please see the 2018 Aerospace and Defense Year in Review here..

Year in Review 2018

January 14, 2019 Update

KAL Capital News

We are pleased to announce that our client STS Aviation Group has entered into an equity partnership with Greenbriar Equity Group.
STS Aviation Group (“STS”) provides one-stop aviation solutions through its three operating divisions focused on Technical Services, Component Solutions, and Maintenance, Engineering, & Modifications (MEM).

Industry News

SAIC and Engility Announce Approval of Merger by Stockholders
Both SAIC and Engility shareholders voted with over 98% approval of the merger.

Embraer and Boeing Receive Brazilian Government Approval of Strategic Partnership
Boeing will hold an 80 percent ownership stake in the new company and Embraer will hold the remaining 20 percent.
The companies have also agreed to terms for another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390 – Embraer will own 51% of this partnership.

Jean-Marc Nasr appointed President Asia-Pacific, Airbus
Jean-Marc Nasr is concurrently nominated as Head of Regional Sales Asia-Pacific, including China and India, for Airbus Defence and Space.

General Dynamics NASSCO Commissions New Panel Line
General Dynamics NASSCO held a ceremony to commission its new panel line, which expands steel production capabilities for the construction of commercial and government ships in San Diego. 
The new panel line enables distortion-free welding of plates as thin as five millimeters to produce lighter, more energy efficient ships.

Iridium Completes Satellite Launch Campaign
On 01/11/2019, a SpaceX Falcon 9 rocket launched from Vandenberg Air Force Base and delivered the final 10 Iridium® NEXT satellites to low earth orbit (LEO). All 10 satellites have successfully communicated with the Iridium Satellite Network Operations Center and are preparing to undergo initial on-orbit testing. This was the eighth and final launch for Iridium’s historic launch campaign with SpaceX, with a total of 75 new satellites deployed over less than two years.

Boeing revealed the newest Transonic Truss-Braced Wing (TTBW)
Researchers say will fly higher and faster than the previous TTBW concepts. The new configuration is designed to offer unprecedented aerodynamic efficiency while flying at Mach 0.80. 

U.S. Air Force Accepts First Boeing KC-46A Pegasus Tanker Aircraft
The U.S. Air Force has accepted the first Boeing KC-46A Pegasus tanker aircraft, setting the stage for the aircraft’s delivery to McConnell Air Force Base in the coming weeks. 
During extensive flight testing, six KC-46 completed more than 3,800 flight hours and offloaded more than four million pounds of fuel to A-10, B-52, C-17, KC-10, KC-135, KC-46, F-15E, F-16 and F/A-18 aircraft. 

Airbus Hits New Commercial Aircraft Delivery Record in 2018
Airbus SE delivered 800 commercial aircraft to 93 customers in 2018.

Boeing Sets New Airplane Delivery Record While Expanding Order Backlog
Boeing delivered 69,737 airplanes in December and set a new annual record of 806 deliveries in 2018, surpassing its previous record of 763 deliveries in 2017. 

M&A

Kellstrom Defense Aerospace, Inc. Acquires Williams Aerospace and Manufacturing, Inc.
Williams Aerospace and Manufacturing, Inc. is a long-term Lockheed Martin Hologram Product Program licensee for the P-3 and C-130 and a manufacturer of parts for the C-5, F-16 and other U.S. OEM defense platforms.

Parsons Corp. Acquires OGSystems, LLC From General Catalyst Partners
OGSystems, LLC provides solutions in geospatial intelligence, big data analytics, and threat mitigation. OGSystems’ core defense and intelligence customers include the National Geospatial-Intelligence Agency (NGA), the National Reconnaissance Office (NRO), and Special Operations Command (SOCOM). 

Nammo AS Completes Acquisition of MAC, LLC
MAC, LLC develops and manufactures lightweight polymer cartridge cases for small and medium caliber ammunition.

Hexcel Corp. Completes Acquisition of ARC Technologies, Inc.
ARC Technologies, Inc. is a supplier of custom RF / EMI and microwave absorbing composite materials for military, aerospace and industrial applications. 

Gallant Capital Partners, LLC Completes Investment in Aero Turbine, Inc.
Aero Turbine provides turbine engine and accessory overhaul, repair and testing services to military and commercial clients.

Essex Industries, Inc. Acquires Momeni Engineering, LLC
Momeni Engineering LLC provides precision machined OEM parts and assemblies to aerospace and medical companies. 

Contract News

Aviation

Delta Air Lines Contracts With C Series Aircraft Limited Partnership for 15 Airbus A220-300 Aircraft
Delta Air Lines awarded C Series Aircraft Limited Partnership (CSALP) an order for 15 A220-300 model aircraft.
The value of the order is $1.37 billion at list prices. Delta also converted earlier A220 orders to the larger -300, bringing to 50 the number of A220-300s on order.

A&D

Lockheed Martin Contracts With FAAC Inc. to Support the Army Training Aids, Devices, Simulators and Simulations (TADSS) Maintenance Program (ATMP)

DLA Aviation and Missile Command W and G Machine Company for UH-60 Black Hawk Flutter Dampeners

Army ACC-APG Contracts With Northrop Grumman for Small Tactical Radar Lightweight Synthetic Aperture Radar/Ground Moving Indicator Target System (STARLite SAR/GMIT) Support

AFLCMC Warner Robins Contracts With Lockheed Martin for C-5 Sustaining Engineering and Technical Support Services (SETSS)

DLA Aviation and Missile Command Contracts With Transaero for UH-60A Black Hawk Fixed Landing Gear

MDA Contracts With Raytheon for Multi-Spectral Targeting System (MTS) Sensor Support

KAL Advises on STS Aviation’s Equity Partnership

KAL Capital is pleased to announce that its client STS Aviation Group has taken an equity investment from Greenbriar Equity Group. KAL served as the exclusive financial advisor.

STS Aviation Group (“STS”) provides one-stop aviation solutions through its three operating divisions focused on Technical Services, Component Solutions, and Maintenance, Engineering, & Modifications (MEM).

STS services commercial airlines, aircraft owners, MROs and OEMs worldwide over a span of five continents and 30 line maintenance stations across the US.

Please see our announcement here.

STS_Announcement

January 7, 2019 Update

KAL Capital News

California Brazing has been acquired by Trive Capital, where KAL Capital served as the sell-side investment banking advisor.
Cal Braze is a leading manufacturer of complex, mission-critical components for a variety of aircraft connectivity, defense electronic and high-technology applications. The Company is a leading provider of aluminum brazing, heat treatment and CNC machining. The business operates out of two facilities with the headquarters in Newark, California.

Industry M&A This Past Week

The Carlyle Group agreed to acquire StandardAero Aviation Holdings, Inc.
Currently a portfolio company of Veritas Capital, StandardAero provides MRO services for aircraft and rotorcraft engines, APUs and components, in addition to comprehensive engineering services.

Technical Services Corporation (TSC) acquires Accelerated Development & Support Corporation (ADS).
ADS provides science and technology (S&T) services to Department of Defense (DoD) programs, including program management, systems integration, and engineering. The company has been rebranded to ADS Federal.

Excelitas Technologies Corp. (AEA Investors L.P.) completes the acquisition of Axsun Technologies.
Axsun technologies designs and manufactures advanced photonics products based on MEMS and other micro-scale optical devices for medical imaging and industrial spectroscopy applications.

Contracts News

Aviation

JetBlue’s Moxy Airline Contracts With C Series Aircraft Limited Partnership (CSALP) for 60 Airbus A220-300 Airliners. Moxy is a new airline venture led by founder of JetBlue Airways, David Neeleman.

A&D

The Office of Naval Research (ONR) (Arlington, VA) awarded Systems Planning and Analysis, Inc. a 5-year, $20.0 million contract to support the Submarine Security Program for the Office of the Chief of Naval Operations (CNO) Undersea Warfare Division (N97) and ONR Sea Warfare and Weapons (Code 33).

The U.S. Army Contracting Command – Redstone (ACC-RSA) awarded Raytheon Command and Control Solutions, LLC a $51.9 million firm-fixed-price (FFP) contract for the procurement of enhanced Sentinel A3 radars and associated spares.

NAVAIR HQ awarded Boeing Strike, Surveillance and Mobility a not-to-exceed $55.0 million fixed-price-incentive-firm undefinitized contract for the procurement of up to six Infrared Search and Track (IRST) Block II low-rate initial production (LRIP) III units for the F/A-18E/F series aircraft.

NAWCAD Contracts With Dayton T. Brown Inc. for Mobile Missions System (MMS) Development and Support. The contract was awarded on a sole-source basis in support of the NAECAD’s Integrated Battlespace Simulation and Test (IBST) Department (AIR-5.4) Special Missions Program Office.

Other News

Arconic, Inc. is reported to be in talks with Apollo Global Management, considering a sale of the company.

KAL Capital Advises on the Sale of California Brazing to Trive Capital

We are pleased to announce the sale of California Brazing (“Cal Braze” or the “Company”) to Trive Capital, where KAL Capital served as the sell-side investment banking advisor.

Cal Braze is a leading manufacturer of complex, mission-critical components for a variety of aircraft connectivity, defense electronic and high-technology applications. The Company is a leading provider of aluminum brazing, heat treatment and CNC machining. The business operates out of two facilities with the headquarters in Newark, California.

KAL ran a targeted marketing process to effectuate the shareholders’ goals of a majority recapitalization with a private equity partner well-versed in the industries in which the Company operates.

Please see our attached announcement for more details on the transaction.

Cal Braze_Deal Announcement

KAL Capital Naval M&A Focus 2018

Please see our overview of recent M&A and macroeconomic factors influencing the Naval supply chains.

KAL Capital Naval M&A Focus

 

Report Highlights:

M&A – Supply Chain Spotlight

  • May River Capital continues to build a strong defense focused portfolio of key naval valve and actuation providers
  • ESCO and CurtissWright acquire key sole-source providers in the Naval submarine supply chain
  • Mercury closes two Naval-focused COTS computing deals in less than 6-month period

While funding increases and production ramps, the greater naval supply chain has been
adapting through a series of M&A consolidations to help support the synergies to fully
capitalize on the long-term growth schedules set by current administration and DoD.

Key component and subsystems manufacturers have been a hot target for OEMs and other
private equity-backed businesses building naval-focused portfolios. In 2019 we expect a sharp
increase in new private equity entrants and continued platform growth. This means a more
competitive landscape for these high-value targets in the component supply chains, and
consequently competitive valuations when considering the strategic acquirers are looking for
the same growth opportunities.

Strategic acquirers like ESCO Technologies and established naval-focused platforms like May
River’s Hunt Valve and Precision Tech will be a few of the names to follow as buyer’s seek
invaluable cost and production synergies while the key manufacturers entertain the valuation
spikes and opportunities to integrate into the bigger picture of the production push.

Defense Focus – Naval Budget

  • 5% Real growth over FY’18 with a reverse in 7-year decline in spending
  • First time in over a decade that enacted appropriation will not be operating under continuing resolution
  • All service branches experience double digit YoY growth in budget
  • Naval Procurement funding witnesses an 18% YoY increase to support sizable shipbuilding production growth plans

Shipbuilding Rates – Increasing Production

  • Navy’s FY’19 Production Plan aims to creep closer towards a 355-ship goal
  • Over the next 5-years DDG-51 and SSBN-774s will increase at rates between 2-3 per year
  • Navy’s “NNN” (Navy the Nation Needs) Vision will increase ship platforms to double-digit production rates and rely on heavy supply chain ramping

Focus – Virginia Class

  • Supply chain optimism follows news of steady 2/year production and potential for further increases
  • Funding increases in Virginia AP and PC reflect the continued Block V’s higher cost and priority considering VPM integration
  • Virginia Payload Module to be incorporated onto all Block V submarines moving forward

Focus – Columbia Class

  • One of the top naval and DoD priorities for procurement
  • Funding receives a 3X increase to support design and development of first Columbia Class SSBN-826
  • Forecast plans for Columbia procurement at roughly 1/year from FY’24 to FY’35

Please see the full report for more details

KAL Capital Naval M&A Focus

KAL ADVISES AMP’S ACQUISITION OF TRIUMPH PROCESSING – EMBEE DIVISION

LONG BEACH, CA, September 20, 2017 /24-7PressRelease/ — Triumph Group, Inc. (NYSE:TGI) and All Metals Processing of Orange County (“All Metals Processing”) announced today the sale of Triumph Processing – Embee Division, Inc. to All Metals Processing, a portfolio company of Watson Family Investments LLC. The Embee Division generated revenues of approximately $42 million in Triumph Group’s fiscal year ended March 31, 2017. The new company will operate as Embee Processing. KAL Capital Markets LLC (“KAL Capital”) provided advisory services to Watson Family Investments to support the acquisition of Embee Processing.

“KAL Capital is the most experienced advisor to the aerospace metal finishing industry,” said Derek Watson, a founder of Watson Family Investments. “The KAL Capital team was instrumental in helping us refine our growth strategy and execute this important transaction.”

“Doing our part to make sure All Metals and Watson Family Investments were successful in their acquisition of Embee was critically important to us,” said Trevor Bohn and Ryan Murphy, founders of KAL Capital. We’re very proud that this marks KAL Capital team’s eighth closed metal finishing acquisition transaction which now collectively include facilities in over thirteen locations throughout the US, Canada and Mexico.”

ABOUT TRIUMPH PROCESSING – EMBEE DIVISION:

Embee Processing is one of the nation’s leading aerospace metal finishing companies providing a broad menu of non-destructive testing and specialty coating services. Embee Processing provides more than 70 metal finishing, inspection and testing processes, including chrome, nickel and cadmium plating, high-velocity oxy-fuel (HVOF), IVD/Vac Cad, anodize/hard anodize, and paint and grinding services. The business is located in Santa Ana, California, and provides services to a variety of aerospace and defense customers across the United States.

ABOUT ALL METALS PROCESSING:

All Metals Processing of Orange County, located in Stanton, California, provides non-destructive testing, anodizing, plating, paint and coatings, and additional metal finishing services to the aerospace and defense sectors. More information about All Metals Processing of Orange County can be found on the company’s website at www.allmetalsprocessing.com.

ABOUT KAL CAPITAL MARKETS:

KAL Capital Markets is a boutique investment banking company that advises middle market clients on mergers, acquisitions, and accessing the capital markets. The firm’s professionals have an exceptional track record, rooted in deep relationships and experience in several industry verticals, with a focus on companies in the Aerospace & Defense and Industrial Growth sectors. For additional information, please visit KAL Capital’s website at www.kalcapitalmarkets.com.

CONTACT:
www.kalcapitalmarkets.com

Trevor Bohn
Partner
Tel: 562-269-4610
Email: trevor@kalcap.com

Ryan Murphy
Partner
Tel: 562-269-4611
Email: ryan@kalcap.com

Investment Banking Services and Securities offered through Independent Investment Bankers Corp. a broker-dealer, Member FINRA/SIPC. KAL Capital is not affiliated with Independent Investment Bankers Corp.

KAL CAPITAL ADVISES BEAVER AEROSPACE AND DEFENSE ON ANNOUNCED SALE TO HÉROUX-DEVTEK

KAL Capital Markets LLC is the exclusive advisor to Phillips Service Industries, Inc. and their subsidiary, Beaver Aerospace and Defense, Inc. on the announced sale to Heroux-Devtek.

LONG BEACH, CALIF. (PRWEB) FEBRUARY 27, 2018

KAL Capital Markets (KAL Capital), a specialized investment banking company, is pleased to announce it served as the exclusive advisor to Phillips Service Industries (PSI), Inc. on the announced sale of their subsidiary, Beaver Aerospace and Defense, Inc. to Héroux-Devtek. The transaction is expected to close in the next 90 days, subject to customary closing adjustments and certain regulatory approvals.

“We’re very thankful to be trusted by the Phillips Family to assist them with the transaction for Beaver Aerospace and Defense. Given Beaver’s unique capabilities in actuation and ball screws, Héroux-Devtek was a natural fit,” Ryan Murphy commented.

When asked about the outlook for further cross-border M&A, Trevor Bohn replied, “The firm’s clientele continue to see strong interest from international acquirors across many sub-sectors. We’re expecting more announcements in 2018 by internationally based acquirors and facilitating cross-border transactions for privately held clients remains a key focus of our firm.”

 Founded by long-term partners Trevor Bohn and Ryan Murphy, KAL Capital serves entrepreneurs and private equity fund managers with companies in the middle market. The firm’s professionals assist clientele on all aspects of mergers, acquisitions and accessing the capital markets, with a focus on the Aerospace & Defense and Industrial Growth sectors.

For additional information on KAL Capital’s transactions, professionals or perspectives, please visit the firm’s website at http://www.kalcapitalmarkets.com

For additional information on Phillips Service Industries (PSI), Inc. / Beaver Aerospace and Defense, please visit their website at http://www.beaver-online.com

ABOUT KAL Capital

KAL Capital Markets is a boutique investment banking company that advises middle market clients on mergers, acquisitions, and accessing the capital markets. The firm’s professionals have an exceptional track record, rooted in deep relationships and experience in several industry verticals, with a focus on companies in the Aerospace & Defense and Industrial Growth sectors. For additional information, please visit KAL Capital’s website at http://www.kalcapitalmarkets.com.

KAL Capital’s vision is to be the top provider of investment banking services to companies who are best in class and desire a liquidity event or have a need for growth capital. Situations range from raising private equity and debt capital to fund acquisitions, to advising on a full sale to a public company. The firm will delivers that vision by staying true to the three pillars of KAL Capital; Optimize Strategy, Execute Relentlessly, and Exceed Expectations.

CONTACT KAL Capital
http://www.kalcapitalmarkets.com

Trevor Bohn
Partner
Tel: 310-430-0634
Email: trevor(at)kalcap.com

Ryan Murphy
Partner
Tel: 310-972-1278
Email: ryan(at)kalcap.com

KAL CAPITAL ANNOUNCES FOUR TRANSACTIONS IN 2017

KAL Capital Markets (KAL Capital), a specialized investment banking company, is pleased to announce four transactions in 2017.

“We’re very thankful to all of the firm’s clients and very proud of those transactions announced publicly during 2017. In particular, we’re pleased that our clients completed transactions with leading firms such as The Carlyle Group, Norwest Equity Partners as well as private investors including Watson Family Investments and Holder Family Investments. We believe KAL Capital’s deep relationships materially enhanced valuations of the transactions announced and in crowded capital markets, relationships with private investors or family offices has become increasingly important,” Ryan Murphy commented.

When asked about KAL Capital’s outlook for 2018, Trevor Bohn replied, “The firm saw the number of transactions in development increase dramatically towards the second half of 2017 and we’re expecting 2018 to get off to a very quick start. With certainty on the Tax Cuts and Jobs Act now in hand, entrepreneurial clients of the firm are finalizing decisions on their capital and liquidity needs. Additionally, we experienced publicly traded companies increasing their willingness to pay more for acquisitions late last year and those first quarter announcements should set the tone for the year ahead.”

Founded by long-term partners Trevor Bohn and Ryan Murphy, KAL Capital serves entrepreneurs and private equity fund managers with companies in the middle market. The firm’s professionals assist clientele on all aspects of mergers, acquisitions and accessing the capital markets, with a focus on the Aerospace & Defense and Industrial Growth sectors.

For additional information on KAL Capital’s transactions, professionals or perspectives, please visit the firm’s website at http://www.kalcapitalmarkets.com

ABOUT KAL Capital
KAL Capital Markets is a boutique investment banking company that advises middle market clients on mergers, acquisitions, and accessing the capital markets. The firm’s professionals have an exceptional track record, rooted in deep relationships and experience in several industry verticals, with a focus on companies in the Aerospace & Defense and Industrial Growth sectors. For additional information, please visit KAL Capital’s website at http://www.kalcapitalmarkets.com.

KAL Capital’s vision is to be the top provider of investment banking services to companies who are best in class and desire a liquidity event or have a need for growth capital. Situations range from raising private equity and debt capital to fund acquisitions, to advising on a full sale to a public company. The firm will delivers that vision by staying true to the three pillars of KAL Capital; Optimize Strategy, Execute Relentlessly, and Exceed Expectations.

CONTACT KAL Capital
http://www.kalcapitalmarkets.com

Trevor Bohn
Partner
Tel: 562-269-4610
Email: trevor(at)kalcap(dot)com

Ryan Murphy
Partner
Tel: 562-269-4611
Email: ryan(at)kalcap(dot)com

KAL CAPITAL ADVISES ON THE SALE OF PRIMEFLIGHT AVIATION SERVICES TO THE CARLYLE GROUP

LONG BEACH, CA, November 13, 2017 — SMS Holdings Group and The Carlyle Group announced today the sale of PrimeFlight Aviation Services. KAL Capital Markets LLC (“KAL Capital”) provided advisory services to SMS Holdings to support the sale of PrimeFlight.

Under leadership of SMS Holdings, PrimeFlight has grown the number of locations to 49 throughout the U.S. and the Caribbean, while growing revenues by 64% between 2014-2016.

Carlyle is currently in partnership with the former Landmark Aviation team, an entity they previously sold to BBA Aviation in 2015 for $2B. Carlyle is primed to deploy a significant amount of capital as they pursue a buy and build strategy in the aviation services space.

About PrimeFlight Aviation Services:

PrimeFlight Aviation Services, Inc. (“PrimeFlight”) is a leading provider of ground handling, aircraft appearance, and terminal services to all major airlines and airports in the United States and the Caribbean. PrimeFlight has served the aviation industry for nearly two decades. PrimeFlight is headquartered in Nashville, TN, and boasts a national footprint with operations in 49 airports with more than 5,000 employees.

About The Carlyle Group:

The Carlyle Group (“Carlyle”) is a global alternative asset manager with over $174 billion of A.U.M. across over 300 investment vehicles. Carlyle has been an active investor in the aviation services space. Notable acquisitions include Wesco, Landmark Aviation, StandardAero.

About KAL Capital Markets:

KAL Capital Markets is a boutique investment banking company that advises middle market clients on mergers, acquisitions, and accessing the capital markets. The firm’s professionals have an exceptional track record, rooted in deep relationships and experience in several industry verticals, with a focus on companies in the Aerospace & Defense and Industrial Growth sectors. For additional information, please visit KAL Capital’s website at www.kalcapitalmarkets.com.

Contact:

www.kalcapitalmarkets.com
Trevor Bohn
Partner
Tel: 562-269-4610
Email: trevor@kalcap.com
Ryan Murphy
Partner
Tel: 562-269-4611
Email: ryan@kalcap.com

KAL ADVISES AMP’S ACQUISITION OF TRIUMPH PROCESSING – EMBEE DIVISION

LONG BEACH, CA, September 20, 2017 /24-7PressRelease/ — Triumph Group, Inc. (NYSE:TGI) and All Metals Processing of Orange County (“All Metals Processing”) announced today the sale of Triumph Processing – Embee Division, Inc. to All Metals Processing, a portfolio company of Watson Family Investments LLC. The Embee Division generated revenues of approximately $42 million in Triumph Group’s fiscal year ended March 31, 2017. The new company will operate as Embee Processing. KAL Capital Markets LLC (“KAL Capital”) provided advisory services to Watson Family Investments to support the acquisition of Embee Processing.

“KAL Capital is the most experienced advisor to the aerospace metal finishing industry,” said Derek Watson, a founder of Watson Family Investments. “The KAL Capital team was instrumental in helping us refine our growth strategy and execute this important transaction.”

“Doing our part to make sure All Metals and Watson Family Investments were successful in their acquisition of Embee was critically important to us,” said Trevor Bohn and Ryan Murphy, founders of KAL Capital. We’re very proud that this marks KAL Capital team’s eighth closed metal finishing acquisition transaction which now collectively include facilities in over thirteen locations throughout the US, Canada and Mexico.”

ABOUT TRIUMPH PROCESSING – EMBEE DIVISION:

Embee Processing is one of the nation’s leading aerospace metal finishing companies providing a broad menu of non-destructive testing and specialty coating services. Embee Processing provides more than 70 metal finishing, inspection and testing processes, including chrome, nickel and cadmium plating, high-velocity oxy-fuel (HVOF), IVD/Vac Cad, anodize/hard anodize, and paint and grinding services. The business is located in Santa Ana, California, and provides services to a variety of aerospace and defense customers across the United States.

ABOUT ALL METALS PROCESSING:

All Metals Processing of Orange County, located in Stanton, California, provides non-destructive testing, anodizing, plating, paint and coatings, and additional metal finishing services to the aerospace and defense sectors. More information about All Metals Processing of Orange County can be found on the company’s website at www.allmetalsprocessing.com.

ABOUT KAL CAPITAL MARKETS:

KAL Capital Markets is a boutique investment banking company that advises middle market clients on mergers, acquisitions, and accessing the capital markets. The firm’s professionals have an exceptional track record, rooted in deep relationships and experience in several industry verticals, with a focus on companies in the Aerospace & Defense and Industrial Growth sectors. For additional information, please visit KAL Capital’s website at www.kalcapitalmarkets.com.

CONTACT:
www.kalcapitalmarkets.com

Trevor Bohn
Partner
Tel: 562-269-4610
Email: trevor@kalcap.com

Ryan Murphy
Partner
Tel: 562-269-4611
Email: ryan@kalcap.com

Investment Banking Services and Securities offered through Independent Investment Bankers Corp. a broker-dealer, Member FINRA/SIPC. KAL Capital is not affiliated with Independent Investment Bankers Corp.