May 20, 2019 Update

M&A

Aeromax Industries, Inc. Acquires K&S Enterprises
Adelanto, Calif.-based K&S Enterprises is a manufacturer of elastomer products for helicopters, whose product line includes custom seals, sleeves, ducts, and gaskets.

Amplitech Group, Inc. to Acquire Specialty Microwave Corp. (SMW)
Ronkonkoma, N.Y.-based Specialty Microwave Corp. (SMW) manufactures microwave components, subsystems and specialized electronics, and services for space, defense, and military markets. The company was founded in 1979. Prior to the date of the Agreement, Amplitech had engaged SMW as service provider for housing and engineering support. Amplitech first started working with SMW in 2018.

Acorn Growth Companies Acquires DIMO Corp.
New Castle, Delaware-based DIMO Corp. is a value-added distributor of operationally critical parts and higher-level assemblies for power, electromechanical, life support and mission-specific aircraft systems. The company was founded in 1994.

Oakley Capital Limited Acquires KVH Industries, Inc. Subsidiary Videotel Marine International Limited
London, UK-based Videotel Marine is a producer of training films and e-Learning services for the commercial maritime industry. Servicing over 11,000 vessels, Videotel provides maritime training services, offering video, animation, e-Learning computer-based training (CBT), and interactive distance learning courses.

BlackBern Partners, LLC Acquires Zentech Manufacturing, Inc.
Baltimore, Md.-based Zentech Manufacturing is an engineering-driven electronics contract manufacturer specializing in the design and manufacture of highly complex electronic and RF circuit cards and assemblies. The company’s core capabilities include design, build, and testing solutions. Zentech’s primary markets are Defense and Aerospace (55%), Medical (25%), Communications (10%), and Industrial Controls (10%).

Meritor, Inc to Acquire Carlyle Group Portfolio Company AxleTech
Troy, Mich.-based AxleTech is a technology company that engineers, designs, manufactures, sells and services powertrain solutions for on- and off-highway heavy-duty vehicles. The company supports OEMs and the aftermarket for commercial and defense customers around the world. In addition to advanced powertrain systems, the company also manufacturers axles, brakes, components and aftermarket parts.

CLM Equity Partners, LLC Acquires Zircon Precision Products, Inc.
Tempe, Ariz.-based Zircon Precision Products is a precision aerospace machining business supporting both commercial and military applications. Through its CNC machining and other specialized capabilities, Zircon produces precision aerospace machined parts and has built a strong reputation for quality throughout the aerospace industry.

Envistacom, LLC Acquires Fast Fit Technologies, LLC
Jefferson, Md.-based Fast Fit Technologies®, LLC is a pioneer of open-source communication waveform and data analytics virtualization using the OpenCL framework for heterogenous computing and targeting COTS High-Performance Computing (HPC) servers equipped with FPGA-based hardware acceleration.

Macquarie Capital Makes Major Capital Investment in Dovel Technologies, Inc.
Dovel Technologies, Inc. is a provider of complex systems integration and information management solutions in data-driven environments for federal agencies requiring health IT, life sciences, and grants management services.

NEWS

Boeing Statement on 737 MAX Certification and Return to Service
Boeing has completed development of the updated software for the 737 MAX, along with associated simulator testing and the company’s engineering test flight. To date, Boeing has flown the 737 MAX with updated MCAS software for more than 360 hours on 207 flights.
Boeing is now providing additional information to address Federal Aviation Administration (FAA) requests that include detail on how pilots interact with the airplane controls and displays in different flight scenarios. Once the requests are addressed, Boeing will work with the FAA to schedule its certification test flight and submit final certification documentation.
“With safety as our clear priority, we have completed all of the engineering test flights for the software update and are preparing for the final certification flight,” said Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg. “We’re committed to providing the FAA and global regulators all the information they need, and to getting it right. We’re making clear and steady progress and are confident that the 737 MAX with updated MCAS software will be one of the safest airplanes ever to fly. The accidents have only intensified our commitment to our values, including safety, quality and integrity, because we know lives depend on what we do.”

Aeromax Industries, Inc. Relocating Headquarters From California to Texas
Aeromax supports various manufacturing and spares programs for international governments, overhaul facilities, licensees, and trading companies worldwide. Areas of expertise include out-of-production aircraft like Lockheed Martin’s F-16, Northrop’s F-5 and T-38, Bell’s Sikorsky UH-60 and GE’s J-85 jet engine. Aeromax is relocating its headquarters from Canoga Park, Calif. to the Fort Worth area.

Lockheed Martin Breaks Ground On New Production Facility
U.S. Air Force and local Alabama officials joined Lockheed Martin (NYSE: LMT) executives today to break ground on the company’s new strike systems production facility in Troy.
The planned 225,000-square-foot facility, combined with the current cruise missile production factory, will provide the necessary space to meet the U.S. Air Force’s objectives.

Tom Arseneault Appointed President & COO for BAE Systems, Inc.
BAE Systems, Inc. today announced that Tom Arseneault has been named president and chief operating officer of BAE Systems, Inc. and appointed to the BAE Systems, Inc. Board of Directors. Jerry DeMuro will continue to serve as CEO for the U.S.-headquartered organization.

Mitsubishi Aircraft Corporation Announces Opening of New U.S. Headquarters
Mitsubishi Aircraft Corporation announced today the opening of a new U.S. headquarters in Renton, Washington. The office employs members of a global team, primarily focused on finalizing the development of the company’s regional jet program, including engineering, sales, marketing and customer support. It will also play a key role in future product development.

Bombardier and JETEX Sign Agreement for Establishment of New Line Maintenance Station in Dubai
Bombardier is pleased to announce that it has signed an agreement with JETEX for the establishment of a new Line Maintenance Station in Dubai, further complementing the tip-to-tail maintenance services provided by Bombardier’s Service and Support Network in the Middle East and around the globe.

KULR Technology Partners With Lockheed Martin to Provide Thermal Management Solutions
KULR Technology Group, Inc. (OTCQB: KUTG), (the “Company” or “KULR”), today announced it will provide its space-developed thermal technology for a purpose-built phase change (PCM) heat sink to leading aerospace and defense company Lockheed Martin (NYSE: LMT).

Noble Aerospace Taking Off as New Parent Company to Embee and All Metals Processing
Noble Aerospace has been established as the parent company of both Embee Processing and All Metals Processing of Orange County, CA. The move positions Noble Aerospace as a leader in the aerospace industry with a wealth of products and services to offer a growing list of global clientèle.
With over 70 years of experience, Embee Processing and All Metals Processing have solidified their reputations as premier entities in the aerospace metal finishing industry. Noble Aerospace will leverage the exemplary staff, innovative processes and vast experience of both companies, and look towards additional acquisition opportunities in the future.

Parsons Corporation Announces Pricing of Initial Public Offering
Parsons Corporation (“Parsons”), a provider of technology-driven solutions in the defense, intelligence and critical infrastructure markets, today announced the pricing of its initial public offering of 18,518,500 shares of its common stock at a price to the public of $27.00 per share. In addition, the underwriters have been granted a 30-day option to purchase up to an additional 2,777,775 shares of common stock. The shares are expected to begin trading on the New York Stock Exchange on May 8, 2019, under the ticker symbol “PSN.” The closing of the offering is expected to occur on May 10, 2019.

CONTRACTS

NIWC/SSC Pacific Awards Nine Contracts for Cyberspace Science, Research, Engineering, and Technology Integration
The U.S. Naval Information Warfare Center Pacific (NIWC Pacific) (San Diego, CA) awarded nine, seven-year, multiple award, task order, cost plus fixed fee, ID/IQ contracts, with a cumulative value of $6,164.3 million, to provide professional technical and management support services to establish and maintain cyberspace operations and enable product lines, programs and projects to include interoperability of systems, services and capabilities at the tactical, operational and strategic levels

DHS CBP Awards 45 Contracts for Tactical Communications Equipment and Services II (TacCom II)
The U.S. Department of Homeland Security (DHS), Customs and Border Protection (CBP), Procurement Directorate (Washington, DC) awarded 45, nine-year, multiple award, task order, ID/IQ contracts, with a value of $3,000.0 million, to provide commodity products and services for a wide variety of applications supporting legacy systems, updated technology and interoperable solutions for tactical communications.

Army ACC-RSA Contracts With DynAviation for Aviation Field Maintenance (AFM II East)
On behalf of the U.S. Army Aviation and Missile Life Cycle Management Command (AMCOM) (Redstone Arsenal, AL), the U.S. Army Contracting Command – Redstone (ACC-RSA) (Redstone Arsenal, AL) awarded DynAviation (Fort Worth, TX) a $4.47 billion firm-fixed-price, time and materials, cost-plus-fixed-fee, level of effort, cost-no-fee contract for aviation field maintenance (AFM II East) services in support of the Aviation Field Maintenance Directorate (AFMD).

Army ACC-RSA Awards Three Contracts for Logistics Support Facility Management Activity (LFSMA)
On behalf of the Program Executive Office (PEO) Aviation, Army Materiel Command (AMC)/Aviation and Missile Command (AMCOM) (Huntsville, AL), the U.S. Army Contracting Command, ACC-RSA, Redstone Arsenal (Redstone Arsenal, AL) awarded three, seven-year, multiple award, task order, ID/IQ contracts with a value of $2,440.0 contracts, to provide modifications to aviation systems owned by AMC/AMCOM.

NAVAIR HQ Mods Contract With Sikorsky for Lot II/III Low-Rate Initial Production (LRIP) CH-53K Aircraft
The U.S. Naval Air Systems Command, Headquarters (NAVAIR HQ) (Patuxent River, MD) awarded Sikorsky, a Lockheed Martin Company (Stratford, CT) a $1.12 billion fixed-price-incentive-firm, cost-plus-fixed-fee modification (P00026) under a previously awarded advance acquisition contract (N00019-16-C-0048) for the procurement of Lot II and Lot III low-rate initial production (LRIP) CH-53K aircraft.

TSA Contracts With L3 for Medium Speed Explosive Systems (MSEDS)
The U.S. Transportation Security Administration (TSA) (Arlington, VA) awarded L3 Technologies – Security & Detection Systems, Inc. (Tewksbury, MA) a $500.0 million firm-fixed-price contract (70T040-19-D-9CAP1049) for purchase and installation of Medium Speed Explosive Systems (MSEDS) in furtherance of the Electronic Baggage Screening program mission requirements.

Army ACC_RSA Contracts With Raytheon for Patriot New Production Hardware, Upgrade Kits and Spares for FMS to Romania
On behalf of the U.S. Army PEO Missiles & Space (PEO MS) (Huntsville, AL), the U.S. Army Contracting Command – Redstone (ACC-RSA) (Redstone Arsenal, AL) awarded Raytheon IDS – Integrated Air & Missile Defense (Andover, MA) a $384.0 million fixed-price-incentive-firm modification (P00026) under a previously awarded contract (W31P4Q-15-C-0022) for Phased Array Tracking Intercept of Target (Patriot) new production hardware, upgrade kits and spares for the government of Romania under the Foreign Military Sales (FMS) program.

NAVSEA Contracts With Raytheon for Cooperative Engagement Capability (CEC) Design Agent and Engineering Services (DA/ES)
The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded Raytheon Network Centric Systems, St. Petersburg (Largo, FL) a $279.3 million cost-plus-incentive-fee, firm-fixed-price, cost-plus-fixed-fee, and cost-only contract (N00024-19-C-5200) for Cooperative Engagement Capability (CEC) design agent and engineering services (DA/ES) in support of the U.S. Navy PEO Integrated Warfare Systems (PEO IWS), Command and Control Program Office (IWS 6.0).

USSOCOM SOF AT&L Contracts With Actionable Solutions Group for Joint Special Operations Task Force (JSOTF) Intelligence Support Services – Joint II (ISS-J II)
The U.S. SOCOM Special Operations Forces Acquisition, Technology and Logistics (USSOCOM SOF AT&L) (Tampa, FL) awarded Actionable Solutions Group, LLC (Alexandria, VA) a maximum $240.7 million firm-fixed-price contract (H92402-19-C-0006) for Intelligence Support Services – Joint II (ISS-J II) for the Joint Special Operations Task Force (JSOTF).

DLA Energy Contracts With Shore Terminals LLC for Jet Fuel Logistics Services
DLA Energy (Fort Belvoir, VA) awarded Shore Terminals LLC (San Antonio, TX) a $227.7 million firm-fixed-price contract (SPE603-19-C-5006) for jet fuel logistics services.

DLA Troop Support C&T Contracts With LiteFighter System for Commercial-off-the-Shelf (COTS) Shelters and Tents
DLA Troop Support – Clothing & Textiles (Philadelphia, PA) awarded Litefighter Systems, LLC (Canton, GA) a maximum $200.0 million firm-fixed-priced, ID/IQ contract (SPE1C1-19-D-1130) for commercial-off-the-shelf (COTS) shelters and tents.

Army ACC-RSA Contracts With Northrop Grumman for RQ-5 Hunter Unmanned Aircraft System (UAS) Fleet Support
On behalf of the U.S. Army Program Executive Office Aviation (PEO AVN) (Huntsville, AL), the U.S. Army Contracting Command – Redstone (ACC-RSA) (Redstone Arsenal, AL) awarded Northrop Grumman Technology Services – Global Logistics and Modernization Division (GLM) (Sierra Vista, AZ) a $163.6 million cost-plus-fixed-fee contract (W58RGZ-19-C-0033) for RQ-5 Hunter Unmanned Aircraft System (UAS) fleet support in support of the PEO AVN Unmanned Aircraft Systems Project Office.

DIA VACA Contracts With Engility for National Media Exploitation Center (NMEC) Exploitation Management Solutions II (EMS II)
The Defense Intelligence Agency, Virginia Contracting Activity (VACA) (Washington, DC) awarded TASC, Inc., An Engility Company (Chantilly, VA) a maximum $106.0 million cost-plus fixed-fee, ID/IQ contract (HHM402-19-D-0003) for exploitation management solutions II (EMS II) in support of DIA’s Science and Technology (S&T) Directorate, National Media Exploitation Center (NMEC).

Army ACC-RSA Mods Contract With Raytheon for Tactically-Launched Optically-Tracked Wireless (TOW) guided missiles
On behalf of the U.S. Army PEO Missiles & Space (PEO MS) (Huntsville, AL), the U.S. Army Contracting Command – Redstone (ACC-RSA) (Redstone Arsenal, AL) awarded Raytheon RMS – Land Warfare Systems (LWS) (Tucson, AZ) a $101.3 million fixed-price-incentive-firm modification (P00014) under a previously awarded contract (W31P4Q-17-C-0194) for Tactically-Launched Optically-Tracked Wireless (TOW) guided missiles.

NAVAIR HQ Mods Contract With Pratt & Whitney for F135 Propulsion Systems Long-Lead Materials, Parts, and Components
The U.S. Naval Air Systems Command, Headquarters (NAVAIR HQ) (Patuxent River, MD) awarded Pratt & Whitney Military Engines (East Hartford, CT) a $55.7 million fixed-price-incentive-firm modification (P00005) under a previously awarded acquisition contract (N00019-18-C-1021) for long-lead items to support the production delivery schedule, exercises an option for additional initial spare parts, and provides program administrative labor for the global spares pool for F135 Propulsion systems for the F-35 Lightning II Joint Strike Fighter aircraft in support of the Air Force, Marine Corps, Navy, non-U.S. Department of Defense (non-U.S. DoD) participants; and Foreign Military Sales (FMS) customers.

April 29, 2019 Update

NEWS

Rolls-Royce, Qatar Airways Debut VR MRO Training
Rolls-Royce and Qatar Airways have introduced virtual reality (VR) training in what the engine manufacturer expects to be the beginning of widespread adoption of the technology. The initial VR instruction helps prepare Doha-based Qatar engineers for disassembling Trent XWB engines for shipment.

Bombardier Makes Moves to Better Support Africa and Middle East Customers
The Q Series aircraft regional support team will move near Johannesburg’s busiest airport to enhance support to operators in the region.

Lockheed Martin Inaugurates F-16 Production Line In Greenville, South Carolina
Lockheed Martin (NYSE: LMT) hosted a ceremony to celebrate its new F-16 production line in Greenville, South Carolina. F-16 tooling and equipment previously in Fort Worth, Texas, has since been installed in a newly-refurbished hangar in Greenville, where the company will begin manufacturing F-16 Block 70 aircraft later this year.

China’s First Airbus H215 Helicopter Delivered to SGGAC for Utility Missions
China’s State Grid General Aviation Company (SGGAC) has taken delivery of one heavy twin-engine Airbus H215 helicopter – a member of the mission-proven Super Puma family – becoming the launch customer for the H215 in China.

Airbus Appoints Jean-Marc Nasr Head of Space Systems
Airbus SE (stock exchange symbol: AIR) has appointed Jean-Marc Nasr, 57, Executive Vice President Space Systems within the Airbus Defence and Space division. Nasr will assume his new duties on 1 June 2019 and succeeds Nicolas Chamussy, 51, whose next assignment is subject to further notice. In his new role, Nasr will be Member of the Airbus Defence and Space’ Executive Committee and report to Dirk Hoke, CEO of Airbus Defence and Space.

ACJ319neo Makes Successful First Flight
The ACJ319neo successfully completed a first flight lasting one hour and 55 min. on 24 April 2019, beginning a short flight-test programme to verify its corporate jet features – such as the extra fuel tanks in its cargo-hold, which enable intercontinental range.

Polish Army to Purchase Tank Destroyers: 13 Potential Contractors
The Polish Ministry of Defence is going to acquire new tank destroyers based on tracked platforms, in order to reinforce the Polish anti-armour capabilities. Furthermore, the goal of the procedure is to replace the obsolete systems using the 9P133 Malyutka system.

Parsons Corporation Launches Initial Public Offering of Common Stock
Parsons Corporation (“Parsons”), a provider of technology-driven solutions in the defense, intelligence and critical infrastructure markets, today announced that it has commenced an initial public offering of its common stock. Parsons is offering 18,518,500 shares of its common stock at an initial public offering price between $26.00 and $28.00 per share.

M&A

Enlightenment Capital Acquires Trowbridge & Trowbridge, LLC
McLean, Va.-based Trowbridge is a provider of information technology (IT) solutions to defense, intelligence, and civilian government agencies. Founded in 2006 by Karen Trowbridge, the company provides cloud engineering, cybersecurity, IT engineering, application development, and network engineering solutions to the federal government. Trowbridge will serve as Enlightenment’s newest platform.

Jacobs Engineering Group, Inc. to Acquire KeyW Corp.
Hanover, Md.-based KeyW Corp. is a national security provider of advanced engineering and technology solutions to the Intelligence, Cyber and Counterterrorism communities, with “unique and differentiated” capabilities in the areas of intelligence, surveillance and reconnaissance (ISR); cyber operations and training; and mission-critical IT and analytics.

Mission Ready Solutions, Inc. Completes Acquisition of Unifire, Inc.
Spokane, Wash.-based Unifire, Inc. is a specialized solutions provider to the US Defense Logistics Agency, and one of six companies worldwide that is authorized to provide equipment and designated services under the multi billion-dollar Tailored Logistics Support (TLS) framework.

Intel Corp. Acquires Omnitek Ltd
Basingstoke, England-based Omnitek Ltd is a provider of optimized video and vision FPGA IP solutions. Omnitek’s technology enables customized high-performance vision and artificial intelligence (AI) inferencing capabilities on FPGAs for customers across a range of end markets, including medical, broadcast, professional AV, automotive, government homeland security, aerospace/defense, industrial/scientific, consumer, and test & measurement.

Willcrest Partners and Curran Companies Recapitalize Precision Aerospace, LLC
Phoenix, Ariz.-based Precision Aerospace is a provider of complex metal assemblies for aerospace and industrial applications. Founded in 1976, the company specializes in build-to-print, complex machined sheet metal fabrications; including welded and mechanical assemblies supporting the aerospace industry, primarily for engine and exhaust applications.

Parker Hannifin Corp. to Acquire LORD Corp.
Cary, N.C.-based LORD Corp. offers a broad array of advanced adhesives, coatings and specialty materials as well as vibration and motion control technologies. LORD’s products are used in mission-critical applications in the aerospace, automotive and industrial markets. The company’s aerospace business produces active vibration control systems, adhesives, coatings, engine attach systems, Magneto-Rheological (MR) fluid, and (through its LORD Reman program) is a provider of overhaul and repair services.

Syntonics, LLC Completes Merger with Engenium Technologies Corp. (ETC)
Columbia, Md.-based Engenium Technologies Corp. (ETC) specializes in signal processing including systems engineering and system modeling, software design and implementation, digital, analog, and RF design and hardware implementation and consulting. The company is also a subject-matter expert in radar and radio communications. ETC has been a subcontractor to Syntonics for the past several years, as the companies have jointly developed the innovative SPiDR (Sniper Projectile Detection Radar) technology for a DoD sponsor.

Comtech Telecommunications Corp. Acquires Next Generation 911 Business From General Dynamics Information Technology, Inc.
Comtech Telecommunications Corp. (NasdaqGS: CMTL) acquired the state and local government Next Generation 911 (“NG-911”) business from General Dynamics Information Technology, Inc. (“GDIT”), a subsidiary of General Dynamics Corp. (NYSE: GD).

KEY CONTRACTS

NAVAIR HQ Contracts With Boeing for F/A-18E/F and EA-18G Various External Stores/Mission Equipment Services
The U.S. Naval Air Systems Command, Headquarters (NAVAIR HQ) (Patuxent River, MD) awarded Boeing Strike, Surveillance and Mobility (Saint Louis, MO) an $89.0 million ID/IQ contract (N00019-19-D-0021) for the technical and engineering services to integrate various external stores and alternative mission equipment onto the F/A-18E/F and EA-18G aircraft.

AFLCMC Wright-Patterson Mods Contract With Raytheon for DAS-4 Production and Upgrades
On behalf of the U.S. Air Force PEO Intelligence Surveillance and Reconnaissance & Special Operations Forces (PEO ISR & SOF) (Wright-Patterson AFB, OH), the U.S. Air Force Life Cycle Management Center (AFLCMC) (Wright-Patterson AFB, OH) awarded Raytheon SAS – Intelligence, Surveillance and Reconnaissance Systems (ISRS) (McKinney, TX) a $94.3 million fixed-price-incentive-firm modification (P00004) under a previously awarded undefinitized contractual action (UCA) (FA8620-18-C-2001) for DAS-4 production and upgrades.
This modification provides for the purchase of an additional 54 production AN/DAS-4 Multi-Spectral Targeting System Model B High Definition/Target Location Accuracy (HD/TLA) turrets and one DAS-1A to DAS-4 turret unit upgrade.

Army ACC-RSA Contracts With General Atomics for MQ-1C Gray Eagle UAS Performance Based Logistics (PBL)
On behalf of the U.S. Army Program Executive Office Aviation (PEO AVN) (Huntsville, AL), the U.S. Army Contracting Command – Redstone (ACC-RSA) (Redstone Arsenal, AL) awarded General Atomics Aeronautical Systems, Inc. (GA-ASI) – Aircraft Systems (Poway, CA) a $99.0 million cost-plus-incentive-fee contract (W58RGZ-19-C-0027) for performance based logistics (PBL) support services for the MQ-1C Gray Eagle Unmanned Aircraft System (UAS).
This support consists of overall logistics support and Gray Eagle fleet sustainment operations within the Contiguous United States (CONUS) and Outside Contiguous United States (OCONUS). The logistics requirements include program management, system sustainment, readiness management and support services, contractor-managed supply maintenance support, equipment maintenance forms and records, sustainment training, urgent repairs and services, maintenance and advice on software configuration management, contractor field service representatives (CFSR) and supply chain management.

Army PEO STRI Contracts With Raytheon for Joint Multinational Readiness Center-Rotational Mission Support (JMRC-RMS)
The U.S. Army Program Executive Office of Simulation, Training & Instrumentation (PEO STRI) (Orlando, FL) awarded Raytheon IIS Navigation and Environmental Solutions (NES) (Dulles, VA) a $158.8 million firm-fixed-price contract (W900KK-19-C-0031) for Joint Multinational Readiness Center-Rotational Mission Support (JMRC-RMS) in support of the JMRC Operations Group (OPSGRP).

NAVSEA Contracts With Lockheed Martin for Combat System Warfare Federated Tactical Systems (SWFTS) System Engineering & Integration (SE&I) Services
The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded Lockheed Martin RMS – C4ISR and Undersea Systems (C4USS) (Manassas, VA) a $207.1 million cost-plus-fixed-fee contract (N00024-19-C-6400) for system engineering & integration (SE&I) services for the Combat System Warfare Federated Tactical Systems (SWFTS). The contractor will provide development, system engineering, integration, and testing of SWFTS interface baseline improvements, and technology refresh/insertion. These services cover the Systems Engineering and Integration (SE&I) of SWFTS system-level interfaces, associated architectures, and command, control, communications and information combat system design elements, in addition to the integration and testing across the SWFTS system-of systems.

NAVAIR HQ Contracts With Harris for Full-Rate Production (FRP) Lot 17-20 AN/ALQ-214(V)4/5 IDECM Jammer Sets and Support
The U.S. Naval Air Systems Command, Headquarters (NAVAIR HQ) (Patuxent River, MD) awarded Harris Integrated Electronic Warfare Systems (IEWS) (Clifton, NJ) a $212.0 million firm-fixed-price contract to manufacture and deliver Lots 17-20 full rate production (FRP) Integrated Defensive Electronic Countermeasures (IDECM) jammers for the F/A-18C/D/E/F variants. The AN/ALQ-214A(V)4/5 is the key onboard electronic warfare (EW) jamming system for the IDECM program, protecting the aircraft from electronic threats, including sophisticated integrated air defense systems. This effort also includes the repair of test assets and field support for the AN/ALQ-214A(V)4/5.

NAVSEA Mods Contract With Electric Boat for Columbia/Dreadnought Class Missile Tubes and Missile Tube Outfitting Material
The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded Electric Boat Corp. (Groton, CT) a $269.3 million cost-plus-fixed-fee modification (P00027) under a previously awarded contract (N00024-17-C-2117) for the manufacturing of 42 missile tubes and missile tube outfitting material in support of the Columbia class fleet ballistic missile submarine (SSBN) and the United Kingdom (UK) Dreadnought. Work will be performed in Quonset Point, RI (71 percent); and York, PA (29 percent), with an estimated date of completion by May 2028. Fiscal 2019 shipbuilding and conversion (Navy); and Foreign Military Funds (FMS) (UK) funding in the amount of $49,500,000 will be obligated at time of award and will not expire at the end of the current fiscal year.

CBP Awards GSA Schedule 70 Task Order to Dev Technology Group for Cargo Systems Application Development and Operations and Maintenance (O&M) Support
On behalf of the Office of Information and Technology (CIO), the U.S. Dept. of Homeland Security, Customs & Border Protection (CBP), Information Technology Center Division (ITCD) (Washington, DC) awarded Dev Technology Group, Inc. (Reston, VA) a $325.5 million time and materials task order (70B04C-19-F-00000204) under the company’s GSA Schedule 70 contract (GS35F0897R) for cargo systems application development and Operations and Maintenance (O&M) support for Cargo Systems Program Directorate (CSPD) in support of cargo systems applications.

Army ACC-RSA Contracts With Lockheed Martin for M270A2 Launcher Production
On behalf of the U.S. Army PEO Missiles & Space (PEO MS) (Huntsville, AL), the U.S. Army Contracting Command – Redstone (ACC-RSA) (Redstone Arsenal, AL) awarded Lockheed Martin Missiles and Fire Control (MFC) (Grand Prairie, TX) a $362.7 million fixed-price-incentive-firm contract (W31P4Q-19-C-0077) for the production of M270A2 launchers in support of the PEO MS Precision Fires Rocket and Missile Systems (PFRMS) Project Office. MLRS is a heavy tracked mobile launcher, transportable via C-17 and C-5 aircraft, that fires Guided MLRS rockets and Army Tactical Missile System (ATACMS) missiles. MLRS will also be able to fire the Precision Strike Missile (PrSM) and Extended-Range GMLRS rockets, both currently in development.

Army ACC-APG Contracts With Raytheon for Troposcatter Transmission System (TROPO) Production/Services
The U.S. Army Contracting Command – Aberdeen Proving Ground (ACC-APG) (Aberdeen Proving Ground, MD) awarded Raytheon IIS Navigation and Environmental Solutions (NES) (Dulles, VA) a $663.0 million firm-fixed-price, cost-plus-fix-fee, ID/IQ contract (W15P7T-19-D-0218) for Troposcatter Transmission System (TROPO), spares and associated services in support of the Program Executive Office for Command Control Communications-Tactical (PEO C3T), Project Manager (PM) Tactical Network (PM-TN), and Product Manager Network Modernization (PdM-NM).

Army ACC-RSA Contracts With Lockheed Martin for Hellfire Missiles for U.S. Armed Forces and FMS Customers
On behalf of the U.S. Army PEO Missiles & Space (PEO MS) (Huntsville, AL), the U.S. Army Contracting Command – Redstone (ACC-RSA) (Redstone Arsenal, AL) awarded Lockheed Martin Missiles and Fire Control (MFC) – Orlando (Orlando, FL) a $723.6 million fixed-price-incentive-firm modification (P00011) under a previously awarded contract (W31P4Q-18-C-0130) to procure a variety of HELLFIRE II missile variants for the U.S. and the governments of Lebanon, Netherlands, and France under the Foreign Military Sales (FMS) program.

DLA Land/TACOM Awards Three Contracts for ISO and Quadcon Containers
On behalf of the U.S. Army Tank-Automotive and Armaments Command (TACOM) (Warren MI), the Defense Logistics Agency (DLA) Land and Maritime Detachment – Warren Acquisition Center (Warren, MI) awarded three, five-year, multiple award, firm-fixed-price, ID/IQ contracts, with a combined value of $744.9 million, for ISO and Quadruple Containers (Quadcon) containers. The DLA container program services customers worldwide utilizing a combination of commercial support and Government transportation capabilities. Although many containers have similar physical and technical characteristics, they vary in price, size, construction, material, availability and capability. For these contracts, two categories of containers are being manufactured for the ISO and Quadruple (Quadcon) categories.

Army ADD-E Awards Five Other Transaction Agreements (OTAs) for the Future Attack Reconnaissance Aircraft Competitive Prototype (FARA CP) Program
The U.S. Army Aviation Development Directorate – Eustis (ADD-E) (Fort Eustis, VA) awarded five parallel other transaction agreements (OTAs) for the Future Attack Reconnaissance Aircraft Competitive Prototype (FARA CP) program in support of the U.S. Army CCDC Aviation and Missile Center (CCDCAMC) for the Future Vertical Lift Cross-Functional Team (FVL CFT).

NAVAIR HQ Contracts With Lockheed Martin for F-35 Lightning II Aircraft Sustainment Services
The U.S. Naval Air Systems Command, Headquarters (NAVAIR HQ) (Patuxent River, MD) awarded Lockheed Martin Aeronautics Co., Fort Worth Operations (Fort Worth, TX) a $1.14 billion cost-plus-incentive-fee, cost-plus-fixed-fee, firm-fixed-price, cost-share contract (N00019-19-C-1022) for sustainment services in support of the F-35 Lightning II aircraft for the Air Force, Navy, non-U. S. Department of Defense (non-U.S. DoD) participants and Foreign Military Sales (FMS) customers.
The material and non-recurring sustainment activities include: Training Material and Infrastructure, Support Equipment, Autonomic Logistics Information System (ALIS) Material and Infrastructure, Site Readiness Reviews and Site Activation Activity, On-Site Personnel and Infrastructure Stand-up, and Aircraft Structural Integrity Program Studies.

NAVSEA Contracts With VT Halter Marine for USCG Polar Security Cutter (PSC) Detail Design and Construction
The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded VT Halter Marine, Inc. (Pascagoula, MS) a $1.94 billion fixed-price incentive-firm contract (N00024-19-C-2210) for the detail design and construction of the U.S. Coast Guard (USCG) Polar Security Cutter (PSC) (formerly the Heavy Polar Ice Breaker).

AFLCMC Wright-Patterson Contracts With Boeing for KC-46 Pegasus Combat Capability (PC2)
On behalf of the U.S. Air Force PEO Tankers (Wright-Patterson AFB, OH), the U.S. Air Force Life Cycle Management Center (AFLCMC) (Wright-Patterson AFB, OH) awarded Boeing Commercial Derivative Aircraft Division (Seattle, WA) a $5.7 billion ID/IQ contract (FA8609-19-D-0007) for KC-46 Pegasus Combat Capability (PC2).

April 22, 2019 Update

M&A

Enlightenment Capital Acquires Trowbridge & Trowbridge, LLC
McLean, Va.-based Trowbridge is a provider of information technology (IT) solutions to defense, intelligence, and civilian government agencies. Founded in 2006 by Karen Trowbridge, the company provides cloud engineering, cybersecurity, IT engineering, application development, and network engineering solutions to the federal government. Trowbridge will serve as Enlightenment’s newest platform.

American Aerospace Technologies, Inc. (AATI) to Acquire Sky Scape Industries, LLC (SSI)
Toms River, N.J.-based Sky Scape Industries, LLC (SSI) is an unmanned technology service-provider. SSI’s data collection and analysis services are widely used by critical infrastructure operators in the electric, water, and oil & gas industries. SSI will continue to provide integration services, professional drone advisory services, and inspection services nationwide.

Gryphon Investors Portfolio Company Jensen Hughes, Inc. Acquires Hillard Heintze, LLC
Chicago, Illinois-based Hillard Heintze is a provider of strategic security risk management and investigation services for Fortune-ranked enterprises, professional sports leagues and law enforcement agencies as well as many of the world’s most affluent families. Hillard Heintze supports clients across the globe through five practices: Security Risk Management, Threat and Violence Risk Management, Investigations, Law Enforcement Consulting, and Private Client and Family Office Services.

Singapore Technologies Engineering Ltd. (ST Engineering) Completes Acquisition of MRA Systems, LLC (MRAS) from General Electric Co.
Baltimore, Md.-based MRA Systems, LLC (MRAS) specializes in the design, development, production and sale of engine nacelle systems and their thrust reversers for both narrowbody and widebody aircraft, along with complex aerostructures for applications on commercial and military aircraft. The company is also a supplier of spare parts. With approximately 800 employees operating in a 1.7 million square foot facility, MRAS has competencies which range from bonding and machining to assembly, test and certification.

Mercury Systems, Inc. Acquires The Athena Group, Inc.
Gainesville, Fla.-based The Athena Group is a provider of cryptographic and countermeasure IP vital to securing defense computing systems. Specializing in differential power analysis (DPA) technology, the company offers a complete portfolio of provable DPA-resistant solutions.

Mercury Systems, Inc. Acquires Syntonic Microwave, LLC
Campbell, Calif.-based Syntonic Microwave, LLC is a provider of advanced synthesizers, wideband phase coherent tuners and microwave converters optimized for signals intelligence (SIGINT) and electronic intelligence (ELINT) applications demanding frequency coverage up to 40 GHz with 2 GHz instantaneous bandwidth.

CIVC Partners Acquires Mangrove Equity Partners, L.P. Portfolio Company Computer Aided Technology, LLC (CATI)
Buffalo Grove, Illinois-based CATI is a provider of 3D design and engineering solutions across the product development continuum, including 3D CAD, 3D CAE, PDM and PLM software, 3D printing and scanning hardware, and other related technologies and consulting, training and support services.

The Carlyle Group Completes Acquisition of a 45% Equity Stake in The Nordam Group, Inc.
Tulsa, Okla.-based The NORDAM Group, Inc. is an aerospace manufacturer and provider of maintenance, repair and overhaul services (MRO) to the business, military aviation, and commercial airline and air freight end-markets. The company designs, certifies and manufactures integrated propulsion systems, nacelles and thrust reversers for business jets; builds composite aircraft structures, interior shells, custom cabinetry and radomes; and manufactures aircraft transparencies, such as cabin windows, wing-tip lens assemblies and flight deck windows.The company provides services to a global customer base through its nine strategically-located operations and customer support facilities on three continents.

Hexagon AB Completes Acquisition of Thermopylae Sciences and Technology, LLC
Arlington, Va.-based Thermopylae Sciences and Technology, LLC is a software provider primarily focused on the U.S. government and defence market that specializes in geospatial applications, mobile frameworks, and cloud computing for enhanced location intelligence.

KKR & Co. L.P. Portfolio Company Hensoldt Holding GmbH to Acquire Major Parts of NEXEYA
Chatenay-Malabry, France-based NEXEYA is a provider of solutions for mission critical environments. Founded in 1997, the company designs, manufactures, integrates and enables specialized products and services for the areas of test and integration solutions, space systems, mission management systems, power conversion and customer support.

NEWS

Nashville International Airport Showing Strong Growth and Strong Local Economy
CAPA reports that Passenger levels at Nashville International airport have soared during the past few years, fueled in part by job growth supported by a sustained robust economy in the region. The airport continues to welcome new services from its largest operator – Southwest Airlines – but during the past couple of years has also secured new flights from the ultra low cost operators Frontier, Allegiant and Sun Country. JetBlue has also begun services from Nashville, and Alaska has also expanded from the airport.

Southwest Mechanics To Vote On Moderate Wage Increases
MRO-Network.com reports that Southwest Airlines mechanics’ real wages would increase 1.0-1.4% annually under the tentative agreement. MRO-Network.com states, “The long and sometimes acrimonious contract negotiations between Southwest Airlines and its mechanics’ union may be nearing an end. The shape of any ultimate agreement should help indicate how fast mechanic wages will increase in light of the much-discussed potential shortage of aircraft mechanics. So far, it looks like mechanic wages will accelerate, but not dramatically so.” in reference to the tentative agreement, “The tentative agreement would increase the base rate pay scale as of April 1, 2019, for each step of a mechanic’s career by 20% and then increase these pay scales further by 3% in August of 2019, 2020, 2021, 2022 and 2023.”

American Airlines Opening New Houston Line Maintenance Station
American Airlines plans to open the new line maintenance station at Houston George Bush Intercontinental Airport for its busy summer travel season.

Air New Zealand Plans New Hangar At Auckland Base
The new 10,000 square meter facility will be close to the airline’s engineering center. Construction of the facility is expected to begin in late 2019.

Symantec Joins U.S. Department of Defense’s Defense Industrial Base Cyber Security Program
Symantec (Nasdaq: SYMC) announced it has become a member of the United States’ Department of Defense’s (DOD) Defense Industrial Base (DIB) Cybersecurity (CS) program. The DIB CS program is a voluntary cyber threat information-sharing initiative established by the DOD to enhance and supplement DIB participants’ capabilities to mitigate cyber attacks.

Northrop Grumman’s Cygnus Spacecraft Successfully Completes Rendezvous and Berthing with International Space Station
Northrop Grumman Corporation (NYSE: NOC) announced that the “S.S. Roger Chaffee” Cygnus™ spacecraft successfully completed its rendezvous and berthing maneuvers with the International Space Station earlier this morning. The mission marks the company’s 11th successful berthing with the orbiting laboratory.

Bell Announces Role for Ozark Facility in Proposal for Us Navy Trainer Replacement
Bell Helicopter, a Textron Inc. (NYSE: TXT) company, announced today that, should the Bell 407GXi be selected for the US Navy Advanced Helicopter Trainer program, the company plans to conduct final assembly of the aircraft in Ozark, Alabama. Bell submitted its proposal to the Navy on April 2. The Navy is seeking to acquire 130 aircraft.

China’s Airbus H135 Final Assembly Line Starts Operations
Airbus Helicopters has expanded its industrial footprint and partnership with China with the opening of the H135 final assembly line in Qingdao. The factory is the first helicopter FAL built by a foreign manufacturer in China, as well as the first H135 FAL outside of Europe.

NASA, Blue Origin Agreement Signals Rocketing Growth of Commercial Space
Officials from NASA and the private space company Blue Origin have signed an agreement that grants the company use of a historic test stand as the agency focuses on returning to the Moon and on to Mars, and America’s commercial space industry continues to grow.

Kratos Defense and Oklahoma Leaders Announce Future Production Home of XQ-58A Valkyrie, Celebrate Completion of First MQM-178 Firejet
State and community leaders joined Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS) executives in Oklahoma City, OK, to unveil the first MQM-178 Firejet target drone aircraft produced at the new Kratos Unmanned Aircraft production facility.

CONTRACTS

Army ACC-RI Awards Four Contracts for Logistics Civil Augmentation Program (LOGCAP) V Program
On behalf of the U.S. Army Sustainment Command (ASC) (Rock Island, IL), the U.S. Army Contracting Command – Rock Island (ACC-RI) (Rock Island, IL) awarded four, ten-year, multiple award, task order, performance-based, ID/IQ contracts, with a ceiling value of $82,000.0 million, to support the geographical combatant commands under the Logistics Civil Augmentation Program (LOGCAP) V program.

AFLCMC Wright-Patterson Contracts With Boeing for B-1/B-52 Flexible Acquisition Sustainment & Modernization (BFAS)
On behalf of the U.S. Air Force PEO Fighters and Bombers (Wright-Patterson AFB, OH), the U.S. Air Force Life Cycle Management Center (AFLCMC) (Wright-Patterson AFB, OH) awarded Boeing Global Services Government – Engineering, Modifications & Maintenance (Oklahoma City, OK) a $14.3 billion firm-fixed-price, fixed-price-incentive-firm, cost-plus fixed-fee, cost-plus-incentive-fee, time and materials, ID/IQ contract (FA8628-19-D-1000) for B-1/B-52 Flexible Acquisition Sustainment & Modernization (BFAS).

USAF ICBM/SD Contracts With Lockheed Martin for Minuteman III Re-Entry Systems/Vehicles Support under the Future ICBM Sustainment and Acquisition Construct (FISAC)
The U.S. Air Force Nuclear Weapons Center (AFNWC), ICBM Systems Directorate (ICBM/SD) (Hill AFB, UT) awarded Lockheed Martin Space – Mission Solutions (King of Prussia, PA) an $879.0 million firm-fixed-price, level of effort, cost-plus-incentive-fee, cost-plus-fixed-fee, fixed-price-incentive-firm, ID/IQ contract (FA8214-19-D-0001) for the Future ICBM Sustainment and Acquisition Construct (FISAC) program in support of the Re-entry Systems/Re-entry Vehicles (RS/RV) subsystem of the LGM-30G Minuteman III (MM III) weapon system.

USAF SMC/MC Mods Contract With Boeing for Wideband Global SATCOM (WGS) Space Vehicle 11
The U.S. Air Force SMC / PEO Space Systems, MILSATCOM Systems Directorate (SMC/MC) (El Segundo, CA) awarded Boeing Satellite Systems International, Inc. (El Segundo, CA) a $605.0 million firm-fixed-price modification (P00109) under a previously awarded contract (FA8808-10-C-0001) for the production of the Wideband Global SATCOM (WGS) Space Vehicle 11.

Australia’s DoD Contracts With Northrop Grumman Australia for Through-Life-Support of the Royal Australian Air Force (RAAF) KC-30A Multi-role Tanker Transport (MRTT) Aircraft Fleet
The Australian Department of Defence (Canberra, Australia), Capability Acquisition and Sustainment Group (CASG), Joint Systems Division (JSD), Communication Systems Branch. Awarded Northrop Grumman Integrated Defence Services Pty Limited (IDS) (Alexandria, NSW, Australia) a ten (10)-year AUD $645.7 million (USD $463.8 million) contract (CN3360384), Agency Reference ID: (4600000587), for the through-life-support of the Royal Australian Air Force (RAAF) KC-30A Multi-role Tanker Transport (MRTT) Aircraft Fleet, for the Air Systems Division (ASD) – Aircraft Technical Services (ATS), Capability Acquisition and Sustainment Group (CASG).

GSA Great Lakes Region (5) Contracts With ViaSat for Rapid Migration of Command, Control, Communications and Computers/Cyber (C5AD) Capability
The U.S. General Services Administration, Great Lakes Region (5) (Chicago, IL) awarded ViaSat, Inc. (Carlsbad, CA) a $450.0 million firm-fixed-price, time and materials, ID/IQ contract (47QFLA-19-D-0006) for Rapid Migration of Command, Control, Communications and Computers/Cyber (C5AD) capability.

NAVSEA Mods Contract With Electric Boat for Columbia/Dreadnought Class Missile Tubes and Missile Tube Outfitting Material
The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded Electric Boat Corp. (Groton, CT) a $269.3 million cost-plus-fixed-fee modification under a previously awarded contract (N00024-17-C-2117) for the manufacturing of 42 missile tubes and missile tube outfitting material in support of the Columbia class fleet ballistic missile submarine (SSBN) and the United Kingdom (UK) Dreadnought.

NAVAIR HQ Mods Contract With Pratt & Whitney for F-35 Lot 14 F135 Propulsion Systems Long-Lead Materials, Parts, and Components
The U.S. Naval Air Systems Command, Headquarters (NAVAIR HQ) (Patuxent River, MD) awarded Pratt & Whitney Military Engines (East Hartford, CT) a $201.9 million fixed-price-incentive-firm modification (P00004) under a previously awarded acquisition contract (N00019-18-C-1021) for long-lead materials, parts, and components for Lot 14 F135 Propulsion systems for the F-35 Lightning II Joint Strike Fighter aircraft in support of the Air Force, Marine Corps, Navy, non-U.S. Department of Defense (non-U.S. DoD) participants; and Foreign Military Sales (FMS) customers.

Army ACC-RSA Contracts With General Atomics for MQ-1C Gray Eagle UAS Performance Based Logistics (PBL)
On behalf of the U.S. Army Program Executive Office Aviation (PEO AVN) (Huntsville, AL), the U.S. Army Contracting Command – Redstone (ACC-RSA) (Redstone Arsenal, AL) awarded General Atomics Aeronautical Systems, Inc. (GA-ASI) – Aircraft Systems (Poway, CA) a $99.0 million cost-plus-incentive-fee contract (W58RGZ-19-C-0027) for performance based logistics (PBL) support services for the MQ-1C Gray Eagle Unmanned Aircraft System (UAS).

USSOCOM SOF AT&L Contracts With Gentex for SOF Personal Equipment Advance Requirements (SPEAR) Family of Tactical Headborne Systems (FTHS)
The U.S. SOCOM Special Operations Forces Acquisition, Technology and Logistics (USSOCOM SOF AT&L) (Tampa, FL) awarded Gentex Corp. (Simpson, PA) a maximum $95.0 million firm-fixed-price, ID/IQ contract (H92403-19-D-0003) for the purchase of Special Operations Forces (SOF) Personal Equipment Advance Requirements (SPEAR) Family of Tactical Headborne Systems (FTHS) in support of USSOCOM Program Manager Special Operations Forces – Survival, Support, and Equipment Systems (PM-SOF SSES).

April 15, 2019 Update

M&A

The Carlyle Group Completes the Acquisition of StandardAero Aviation Holdings Inc. From Veritas Capital
Scottsdale, Ariz.-based StandardAero Aviation Holdings Inc. is one of the aerospace industry’s largest independent providers of services. Services include MRO for aircraft and rotorcraft engines, auxiliary power units and components; airframe services including major alterations; FAA authorized avionics capabilities; comprehensive engineering services; and custom exterior and interior design, completion and paint. These capabilities are provided through a network of specialized facilities and mobile service teams. The company’s services are provided to commercial aviation, business aviation, military and industrial power customers.

Global Ordnance, LLC Acquires Chemring Military Products, Inc. From Chemring Group PLC
Perry, Fla.-based Chemring Military Products, Inc. is a DDTC-licensed and ISO 9001:2008-certified trading company that provides a complete set of brokering services to the U.S. and approved foreign customers. CMP’s expertise covers technical data package development, program and supply chain management, quality assurance, export control and worldwide logistics for a wide variety of NATO and Russian-standard ammunition, pyrotechnics, weapon systems and platforms for ground and air warfare.

Singapore Technologies Engineering Ltd. (ST Engineering) to Acquire Newtec Cy N.V.
Sint-Niklaas, Belgium-based Newtec develops satellite communication equipment and technologies for broadcast, government and defense, IP trunking and consumer and enterprise VSAT. Founded in 1985, the company’s products include satellite terminals, modems, modulators, demodulators, redundancy switches, OEM boards, and monitoring and control software and subsystems.

Enlightenment Capital Portfolio Company EverWatch Corp. Acquires Northwood Global Solutions, LLC
EverWatch Corp., a portfolio company of Enlightenment Capital, acquired Northwood Global Solutions, LLC.
Herndon, Va.-based Northwood Global Solutions, LLC is a provider of technology solutions specializing in cloud architecture and migration, cybersecurity, analytics, and big data systems architecture to the Intelligence Community.

FLIR Systems, Inc. Completes Strategic Investment in DroneBase, Inc.
Santa Monica, Calif.-based DroneBase, Inc. is a global drone operations company that provides businesses access to one of the largest Unmanned Aerial Surveillance (UAS) pilot networks. DroneBase and its pilots have completed over 100,000 commercial missions in more than 70 countries and in all 50 states, providing aerial images and data services across multiple industries, such as residential and commercial real estate, insurance, telecommunications, construction, and media.

KKR & Co. L.P. Portfolio Company Hensoldt Holding GmbH to Acquire Major Parts of NEXEYA
Chatenay-Malabry, France-based NEXEYA is a provider of solutions for mission critical environments. Founded in 1997, the company designs, manufactures, integrates and enables specialized products and services for the areas of test and integration solutions, space systems, mission management systems, power conversion and customer support. The acquisition of a substantial portion of NEXEYA’s activities will complement Hensoldt’s portfolio and help drive international growth.

NEWS

InTech Aerospace Makes Technology Investments, Expands Facilities for More Customer Services
InTech Aerospace LLC, a long-standing aviation technical services firm specialized in commercial and government airplane interiors and components, has expanded its main MRO facility near George Bush Int’l. Airport, and has added even more technology improvements to its capacities.

Northrop Grumman Successfully Completes Second Ground Test of New Rocket Motor for United Launch Alliance Atlas V
Northrop Grumman Corporation (NYSE: NOC) conducted its second ground test of a 63-inch diameter Graphite Epoxy Motor (GEM 63) today in Promontory, Utah. The company developed this new side-mounted rocket motor to add power to the United Launch Alliance (ULA) Atlas V launch vehicle.

Gulfstream G650ER Shatters Speed Record For Farthest Business Jet Flight In History
Gulfstream Aerospace Corp. today announced the ultralong-range Gulfstream G650ER once again proved its unrivaled performance, beating a recent competitor speed record while at the same time increasing the distance flown for the farthest business jet flight in history. The G650ER flew from Singapore to Tucson, Ariz., at an average speed of 597 miles per hour/960 kilometers per hour over a distance of 8,379 nautical miles/15,518 kilometers. The G650ER’s performance beat the previous record by 44 minutes and more than 225 nm/417 km, asserting the aircraft’s title for flying farther faster than any other jet.

ANA Takes Delivery of Airline’s First Boeing 787-10 Dreamliner
Boeing [NYSE:BA] delivered the first of three 787-10 airplanes to ANA (All Nippon Airways), the original launch customer of the 787 Dreamliner. With this milestone delivery, ANA becomes the first airline in Asia to operate the entire Dreamliner family.

Triumph Announces Channel Partnership With Honeywell
Triumph Group, Inc. (NYSE: TGI) announced at MRO Americas industry show that its Accessory Services business has entered into a five year channel partnership with Honeywell that includes access to spare parts and intellectual property, and positions Triumph as an authorized repair center for Honeywell. As an authorized repair center, Triumph Accessory Services will provide Honeywell and our global customers with support for accessories and component MRO along with supply chain solutions. Triumph Accessory Services is an operating company of Triumph Product Support.

GAMECO Becomes Boeing Supplier for MRO Support
Boeing [NYSE: BA] and Guangzhou Aircraft Maintenance Engineering Company Limited (GAMECO) have signed an MRO services agreement to work together to provide MRO support in the Asia-Pacific region. Through this agreement Boeing will provide MRO maintenance training and access to maintenance data and technical support, while GAMECO commits to maintaining Boeing’s rigorous quality standards for MRO services.

Safran Introduces B.Side, a New Engine Borescope Inspection Consulting Service
At the MRO Americas conference, Safran Aircraft Engines announced the commercial launch of B.Side®, its new service to provide remote borescope inspection recommendations in real time.

Embraer Board Selects New President and CEO
Further to the succession process, which started last March, Embraer announces that the nomination of Francisco Gomes Neto, current President of Marcopolo, will be presented to the Board of Directors for the position of President and CEO, succeeding Paulo Cesar de Souza e Silva. The election will be held during the Board meeting, after the General Shareholders’ Meeting scheduled for April 22.

General (Ret.) Richard A. Cody Joins MAG Aerospace Board of Directors
MAG Aerospace, a global leader in C4ISR integration, training, and operations, today announced that General (Ret.) Richard A. Cody, US Army has joined the company’s Board of Directors. General Cody, United States Army, served as L3 Technologies’ Corporate Senior Vice President of Washington Operations for 10 years until his retirement in October 2018.

SpaceX Falcon Heavy Launches Arabsat-6A Mission
On Thursday, April 11 at 6:35 p.m. EDT, Falcon Heavy launched the Arabsat-6A satellite from Launch Complex 39A (LC-39A) at NASA’s Kennedy Space Center in Florida. The satellite was deployed approximately 34 minutes after liftoff.

CONTRACTS

AFLCMC Wright-Patterson Contracts With Boeing for B-1/B-52 Flexible Acquisition Sustainment & Modernization (BFAS)
On behalf of the U.S. Air Force PEO Fighters and Bombers (Wright-Patterson AFB, OH), the U.S. Air Force Life Cycle Management Center (AFLCMC) (Wright-Patterson AFB, OH) awarded Boeing Global Services Government – Engineering, Modifications & Maintenance (Oklahoma City, OK) a $14.3 billion firm-fixed-price, fixed-price-incentive-firm, cost-plus fixed-fee, cost-plus-incentive-fee, time and materials, ID/IQ contract (FA8628-19-D-1000) for B-1/B-52 Flexible Acquisition Sustainment & Modernization (BFAS).

NAVAIR HQ Mods Contract With Northrop Grumman for 24 Full Rate Production (FRP) Lot 7-11 E-2D Advanced Hawkeye (AHE) Aircraft
The U.S. Naval Air Systems Command, Headquarters (NAVAIR HQ) (Patuxent River, MD) awarded Northrop Grumman E-2 and C-2 Programs (Melbourne, FL) a $3.16 billion fixed-price-incentive-firm modification (P00006) to definitize the previously awarded E-2D Advanced Hawkeye (AHE) Lot 7 advance acquisition contract (N00019-18-C-1037) for the procurement of 24 full-rate production (FRP) Lots 7-11 E-2D AHE aircraft.

South Korea’s Air Premia Selects the Rolls-Royce Trent 1000 TEN for Boeing 787-9 Dreamliners
Air Premia (Incheon, South Korea) has selected Rolls-Royce Civil Large Engines (Derby, Derbyshire, England, UK) to provide Rolls-Royce Trent 1000 TEN engines to power up to ten (1) Boeing 787 Dreamliner aircraft, at at estimated list price of USD $834.0 million.

Lockheed Martin Contracts with Harris for GPS III Follow-On (GPS IIIF) Satellites Mission Data Units (MDUs)
Lockheed Martin Space (Littleton, CO) awarded Harris Mission Networks (Melbourne, FL) a $243.0 million contract for fully-digital Mission Data Units (MDUs) for the first two GPS III Follow-On (GPS IIIF) satellites.

Army ACC-WRN Mods Contract With AM General for 648 M997A3 High Mobility Multipurpose Wheeled Vehicle (HMMWV) Ambulances
On behalf of the U.S. Army PEO Combat Support and Combat Service Support (CS&CSS) (Warren, MI), the U.S. Army Contracting Command – Warren (ACC-WRN) (Warren, MI) awarded AM General, LLC (South Bend, IN) a $185.0 million firm-fixed-price modification under a previously awarded contract (W56HZV-18-D-0084) for procurement of 648 M997A3 High Mobility Multipurpose Wheeled Vehicle (HMMWV) ambulances.

NAWCAD Contracts With AMEWAS for Integrated Battlespace Simulation and Test (IBST) Simulation Division (AIR 5.4.3) Engineering and Technical Support Services
The U.S. Naval Air Warfare Center Aircraft Division – Pax River (NAWCAD) (Patuxent River, MD) awarded AMEWAS, Inc. (California, MD) a $99.7 million cost-plus-fixed-fee, cost-reimbursable, ID/IQ contract (N00421-19-D-0054) for engineering and technical support services required for the Integrated Battlespace Simulation and Test (IBST) Simulation Division (AIR 5.4.3).

DLA Land and Maritime Awards Four Contracts for Global Tire Program (GTP) Aircraft Tires
DLA Land and Maritime (Columbus, OH) awarded four parallel three-year, firm-fixed-price, indefinite-delivery/requirements contracts with a combined value of $96.5 million for aircraft tires supporting the Global Tire Program (GTP).

USSOCOM SOF AT&L Contracts With Gentex for SOF Personal Equipment Advance Requirements (SPEAR) Family of Tactical Headborne Systems (FTHS)
The U.S. SOCOM Special Operations Forces Acquisition, Technology and Logistics (USSOCOM SOF AT&L) (Tampa, FL) awarded Gentex Corp. (Simpson, PA) a maximum $95.0 million firm-fixed-price, ID/IQ contract (H92403-19-D-0003) for the purchase of Special Operations Forces (SOF) Personal Equipment Advance Requirements (SPEAR) Family of Tactical Headborne Systems (FTHS) in support of USSOCOM Program Manager Special Operations Forces – Survival, Support, and Equipment Systems (PM-SOF SSES).

USSOCOM SOF AT&L Awards SBIR Phase III Contract to Technology Service Corp. for the Long Endurance Unmanned Aircraft System (UAS)
TheU.S. SOCOM Special Operations Forces Acquisition, Technology and Logistics (USSOCOM SOF AT&L) (Tampa, FL) awarded Technology Service Corp. (TSC) (Arlington, VA) a maximum $49.0 million cost-plus-fixed-fee, ID/IQ Small Business Innovative Research (SBIR) Phase III contract (H92408-19-D-0001) for the long endurance unmanned aircraft system (UAS) in support of U.S. Special Operations Command (USSOCOM).

Army ACC-APG Awards Other Transaction Agreement (OTA) to FLIR for the Sensor Suite Upgrade (SSU) for the Nuclear, Biological and Chemical Reconnaissance Vehicle (NBCRV)
On behalf of the Joint PEO for Chemical, Biological, Radiological and Nuclear Defense (JPEO-CBRND) (Aberdeen Proving Ground, MD), the U.S. Army Contracting Command – Aberdeen Proving Ground (ACC-APG) (Aberdeen Proving Ground, MD) awarded FLIR – ICx Nomadics, Inc. (Stillwater, OK) a $48.1 million other transaction agreement (OTA) for the Nuclear Biological Chemical Reconnaissance Vehicle Sensor Suite Upgrade (NBCRV SSU) program.

KAL Capital Q1 Aerospace and Defense Review

Dear Friends,

Suffice to say, 2019 is off to an interesting start! For our firm, despite the first quarter traditionally being a slower time, we had two closed transactions that both represented strong achievements for the practice. We were thrilled to represent Triumph Group (NYSE: TGI) in their divestiture of the NAAS Aviation Services business to STS Aviation. Additionally, we represented Florida Turbine Technologies, an engineering-focused service provider to the US Department of Defense in its sale to Kratos Defense (NASDAQ: KTOS).

For participants in the commercial aerospace supply-chain, the first quarter of 2019 has turned into arguably the most eventful period in over a decade. Spurred by two tragic crashes, the B737 MAX has been involved in more headlines over the past 30 days than most platforms experience over their 40 year lives. The initial ripple-effect is just now being felt as Boeing recently announced a ~20% reduction in build-rates. From our perspective, there appears to be two issues, one near-term and one long-term. The short-term issue revolves around the “fix” to the faulty MCAS system and how quickly the FAA will allow for flights (and deliveries) to resume. Media reports indicate that this will be resolved in a period of weeks which would alleviate issues around aircraft storage and working capital. The longer-term, ultimately more critical issue is the viability of the order book and whether the record-setting backlog will ever be realized.

Boeing is now dealing with a plane that has reached the consumer consciousness to an unprecedented extent. It’s difficult to state with confidence how long and to what level the traveler will retain a negative bias and how that impacts the operators of the aircraft. That said, airlines today are left with very limited options outside the MAX. Capacity growth and increased fuel efficiency remain strategic priorities of most airlines, and getting in the back of the line for an A320 is not a solution. We remain hopeful that the worst of the supply-chains’ MAX-related nightmares are behind us but the next few months will be critical as Boeing navigates an unhappy customer base.

Please see our Q1 Review Here…
KAL Capital A&D Newsletter Q1 2019

Sincerely,

KAL Capital Team

April 1, 2019 Update

M&A

Sagewind Capital, LLC Portfolio Company By Light Professional IT Services LLC Acquires Phacil, Inc.
McLean, Va.-based Phacil, Inc. is a software, cybersecurity, systems engineering and managed services provider to the US Government.

Consortium of Private Equity Firms, Pension Funds Make Offer to Acquire Inmarsat plc
London-based Inmarsat plc is the world’s leading provider of global mobile satellite communications, with maritime, aeronautical, and land mobile operations.

New Mountain Capital, LLC Portfolio Company MAG Aerospace Acquires Encore Aviation Pty Ltd
Forest Hill, NSW, Australia-based Encore Aviation is a maintenance organization supporting general aviation in Australia and provides home base and deployed engineering and maintenance services to a wide variety of fixed and rotary wing aviation organizations, including those contracted to the National Aerial Firefighting Centre in Melbourne.

Resilience Capital Partners, LLC Acquires InnoVista Sensors Subsidiary Systron Donner Inertial, Inc. (SDI)
Concord, Calif.-based Systron Donner is a supplier of quartz microelectromechanical systems (QMEMS) used in inertial sensing products that provide precision guidance, navigation and locational solutions.

Orolia S.A. Acquires Skydel Solutions, Inc.
Longueuil, Quebec, Canada-based Skydel Solutions, Inc. is a global navigation satellite system and GPS signal simulation company, combining innovative algorithms with off-the-shelf hardware to protect critical systems that rely on GNSS and operate through global navigation satellite networks like GPS.

Rheinmetall AG to Acquire IBD Deisenroth Engineering GmbH
Lohmar, Germany-based IBD Deisenroth Engineering GmbH designs, develops, and manufactures passive protection systems, with a focus on the use of next-generation materials in association with a modular and synergistic structural approach.

News

Vector’s GalacticSky GSky-1 Satellite Developed with USC’s Space Engineering Research Center Ready for Launch Later This Year
Vector, the space access company, today announced its GalacticSky division, which has been in stealth mode since 2016. Led by veterans from VMWare and Citrix, as well as satellite innovators, GalacticSky has achieved a major milestone on its path to launch its first GalacticSky software-defined satellite, GSky-1. GSky-1 successfully completed integration at the University of Southern California’s Space Engineering Research Center (SERC) at the Information Sciences Institute (ISI) and will validate GalacticSky’s mission to enable innovators to easily and effectively deploy space application technology in space.

US Army, Raytheon Complete DeepStrike Missile Preliminary Design Review
Raytheon Company (NYSE: RTN) and the U.S. Army completed a successful preliminary design review for the new DeepStrike® surface-to-surface missile, moving the weapon down the development path toward its first flight tests planned for later this year.

Second Lockheed Martin-Built GPS III Satellite For The U.S. Air Force Arrives In Cape Canaveral For July Launch
On March 18, Lockheed Martin (NYSE: LMT) shipped the Air Force’s second GPS III space vehicle (GPS III SV02) to Cape Canaveral for an expected July launch. Designed and built at Lockheed Martin’s GPS III Processing Facility near Denver, the satellite traveled from Buckley Air Force Base, Colorado, to the Cape on a massive Air Force C-17 aircraft. The Air Force nicknamed the GPS III SV02 ‘Magellan’ after Portuguese explorer Ferdinand Magellan.

Northrop Grumman Ground System Provides Direction for the First Dual Interceptor Test for Ground-Based Midcourse Defense System
In an unprecedented display of accuracy, Northrop Grumman Corporation, (NYSE: NOC) as the strategic partner to prime contractor, Boeing, successfully provided the weapon task plans for the Ground-based Midcourse Defense (GMD) system Ground Based Interceptors (GBI) during the first dual interceptor mission against an Intercontinental Ballistic Missile (ICBM) target for the U.S. Missile Defense Agency (MDA).

Huntington Ingalls Industries Authenticates Keel of Virginia-Class Attack Submarine New Jersey (SSN 796)
Huntington Ingalls Industries’ (NYSE: HII) Newport News Shipbuilding division hosted a keel authentication ceremony for the Virginia-class attack submarine New Jersey (SSN 796).

GE Aviation’s CT7-2F1 Engine Receives FAA Certification
The newest member of GE’s CT7 engine family, the CT7-2F1, achieved type certification by the Federal Aviation Administration. This milestone is a big step forward for entry into service of the CT7-2F1-powered Bell 525 Relentless, the world’s first fly-by-wire commercial helicopter, designed to operate safely and reliably in austere environments and with decreased pilot workload.

GA-ASI Breaks Ground on New Hangar in El Mirage, Calif.
General Atomics Aeronautical Systems, Inc. (GA-ASI) held a ground breaking ceremony for a new hangar being built in El Mirage, Calif. The new facility in the high desert of southern California will be close to 150,000 square feet and be used to house and test GA-ASI’s latest Remotely Piloted Aircraft (RPA) variant, the MQ-9B SkyGuardian.

Raytheon Company Announces Executive Appointments
Raytheon Company (NYSE: RTN) Chairman and CEO Thomas A. Kennedy announced today the appointment of Wesley D. Kremer as President, Raytheon Missile Systems (RMS), succeeding Dr. Taylor W. Lawrence, who informed the company of his intention to retire from Raytheon on July 14, 2019. Additionally, Kennedy has appointed Ralph H. Acaba President, Raytheon Integrated Defense Systems (IDS), succeeding Kremer. The new appointments are effective March 30, 2019. Dr. Lawrence will serve as a senior advisor to the company during the interim period prior to his retirement.

New SelfPass Biometrics Solution from Collins Aerospace Among the First to Connect Multiple Airlines, Airports and Countries
Passengers traveling through England’s Bristol Airport and Ireland’s Dublin Airport can look forward to a new streamlined journey with Collins Aerospace’s SelfPass biometric solution. The solution, now being trialed at Bristol Airport and Dublin Airport, is believed to be the first biometric solution that enables passengers to use a single enrollment in multiple countries.

Embraer Delivers the 500th Phenom 300 Series Aircraft, the Most Successful Business Jet of the Decade
Embraer has delivered the 500th Phenom 300 series business jet. According to General Aviation Manufacturers Association (GAMA) reports, the Phenom 300 is the only business jet model to reach this milestone in the last 10 years. The Phenom 300 outperforms in the light jet class with its speed, range, comfort and technology. Being the fastest and farthest-flying light jet, the Phenom 300 has set multiple speed records, certified by the National Aeronautic Association and the Federation Aeronautique Internationale.

DSCA Notifies Congress of Possible Sale of MQ-9B SkyGuardian Remotely Piloted Aircraft (RPA) to Belgium
The State Department has made a determination approving a possible Foreign Military Sale to Belgium of MQ-9B SkyGuardian Remotely Piloted Aircraft (RPA) and related equipment for an estimated cost of $600 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale on March 25, 2019.

Aerojet Rocketdyne’s Propulsion Supported 11th Successful Missile Defense Intercept for GMD
In a first-of-its-kind flight test of the Missile Defense Agency’s Ground-based Midcourse Defense (GMD) program, in partnership with prime contractor Boeing, Aerojet Rocketdyne’s Divert and Attitude Control System (DACS) supported Raytheon’s Exoatmospheric Kill Vehicle (EKV) in its intercept of an ICBM. The test, designated FTG-11, was the first salvo test for the GMD program. During the test, both interceptors, carrying the Raytheon-built EKVs, were launched from Vandenberg Air Force Base, California, following the launch of a threat-representative ICBM target from Kwajalein Atoll in the Pacific Ocean. The Aerojet Rocketdyne DACS helped to successfully maneuver an EKV to destroy the incoming target.

York Space Systems Ships S-class Spacecraft for Launch Ahead of Inaugural Mission
York Space Systems, an aerospace company specializing in complete space segment customer solutions and the manufacture of standardized spacecraft platforms, today announced its S-CLASS spacecraft platform has officially been shipped to the launch site for the company’s inaugural mission. A major milestone for the company, the platform completed the rigorous Environmental Test Program to obtain official clearance for imminent takeoff on its groundbreaking launch.

Lockheed Martin-Led Team Begins Construction On Navy’s Newest Multi-Mission Warship, Littoral Combat Ship 25 (Marinette)
In a ceremony that formally marks the beginning of a ship’s construction, Lockheed Martin [NYSE: LMT] and Fincantieri Marinette Marine laid the keel on Littoral Combat Ship (LCS) 25, the future USS Marinette. During the ceremony, the ship’s sponsor Jennifer Granholm, former governor of Michigan, had her initials welded into the ship’s keel plate.

General Dynamics Appoints Smith as Executive Vice President; Paddock as President of Jet Aviation; Casey to Retire
General Dynamics (NYSE: GD) has appointed Robert E. Smith as executive vice president of the Marine Systems segment, effective July 1. Smith succeeds John P. Casey, who has informed the company of his intent to retire on June 30. David Paddock, Jet Aviation’s senior vice president and general manager of U.S. aircraft services, will succeed Smith as president of Jet Aviation.

Contracts

China Aviation Supplies Holding Company Contracts With Airbus for A330 and A350 Family Aircraft
China Aviation Supplies Holding Company (CAS) (Beijing, China) awarded Airbus SAS, Airbus (Toulouse Blagnac, France) a General Terms Agreement (GTA) for the acquisition of 300 Airbus family airliners at a total list price of approximately $29.3 billion. The GTA comprises of 290 A320 Family aircraft and ten (10) A350 XWB Family aircraft, reflecting the strong demand in all market segments including domestic, low cost, regional and international long haul from Chinese carriers.

MDA Definitizes Contract Modification With Boeing for the Ground-based Midcourse Defense (GMD) Development and Sustainment Contract (DSC)
The U.S. Missile Defense Agency (MDA) (Huntsville, AL) awarded Boeing Missile and Weapons Division (Huntsville, AL) a $4.14 billion cost-plus-incentive-fee contract (HQ0147-19-C-0004) to partially definitize the $6.56 billion undefinitized contract action (UCA) issued Jan. 31, 2018, on contract HQ0147-12-C-0004 (modification P00438) for the Ground-based Midcourse Defense (GMD) Development and Sustainment Contract (DSC).

Deutsche Lufthansa Contracts With Rolls-Royce for Trent 1000 Engines to Power Boeing 787 Dreamliners
Deutsche Lufthansa AG awarded Rolls-Royce Commercial Aero Engines Ltd. (Derby, Derbyshire, England, UK) a contract for Trent 1000 engines, including TotalCare service support, to power twenty (20) Boeing 787 Dreamliners airliners.

NAVSEA Mods Contract With Ingalls Shipbuilding for Landing Platform Dock 30 (LPD 30) Detail Design and Construction
The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded Ingalls Shipbuilding (Pascagoula, MS) a $1.47 billion fixed-price-incentive-firm modification under a previously awarded contract (N00024-18-C-2406) for the procurement of the detail design and construction of Landing Platform Dock 30 (LPD 30).

Deutsche Lufthansa Contracts With Rolls-Royce for Trent XWB Engines to Power More Airbus A350-900 Airliners
Deutsche Lufthansa AG awarded Rolls-Royce Commercial Aero Engines Ltd. (Derby, Derbyshire, England, UK) a contract for Trent XWB engines, including TotalCare service support, to power twenty (20) Airbus A350-900 airliners.

Army ACC-RSA Mods Contract With Lockheed Martin for Additional Guided Multiple Launch Rocket Systems (GMLRSs)
On behalf of the U.S. Army PEO Missiles & Space (PEO MS) (Huntsville, AL), the U.S. Army Contracting Command – Redstone (ACC-RSA) (Redstone Arsenal, AL) awarded Lockheed Martin Missiles and Fire Control (MFC) (Grand Prairie, TX) an $1.13 billion cost-plus-fixed-fee, firm-fixed-price, fixed-price-incentive-fee modification (P00010) under a previously awarded contract (W31P4Q-18-C-0049) for full rate production Lot 13 Guided Multiple Launch Rocket Systems (GMLRSs).

DoD WHS Contracts With Institute for Defense Analysis (IDA) for Federally Funded Research and Development Center (FFRDC) Systems and Analyses Center
On behalf of the Under Secretary of Defense for Acquisition, Technology and Logistics (AT&L) (Arlington, VA), the U.S. Washington Headquarters Services (WHS), Acquisition Directorate (Washington, DC) awarded Institute for Defense Analyses (IDA) (Alexandria, VA) a $950.0 million cost-plus-fixed-fee, ID/IQ contract (HQ0034-19-D-0001) for Federally Funded Research and Development Center (FFRDC) effort fo research, analyses, technical evaluation, and test and evaluation support to the Office of the Secretary of Defense (OSD), the Joint Staff (JS), the Combatant Commands, and the Defense Agencies.

AFLCMC Peterson Contracts With CACI Federal for the Mobile Command and Control Support Contract (MC2SC)
On behalf of the U.S. Air Force PEO Battle Management (AFPEO BM) (Hanscom AFB, MA), the Air Force Life Cycle Management Center (AFLCMC), Air Force Space Command (AFSPC) (Peterson AFB, CO) awarded CACI, Inc. – Federal (Chantilly, VA) a not-to-exceed $810.0 million firm-fixed-price, fixed-price-incentive-firm, cost-plus-incentive-fee, cost-plus-fixed-fee, cost-reimbursement, ID/IQ contract (FA8723-19-D-0001) for the Mobile Command and Control Support Contract (MC2SC) in support of the Mobile Consolidated Command Center (MCCC) Program Office.

NAVSUP WSS Contracts With GE Aviation for F404 Engine Performance Based Logistics (PBL) Support for the F/A-18A-D Aircraft
NAVSUP Weapon Systems Support (NAVSUP WSS) (Philadelphia, PA) awarded GE Aviation – Military Solutions (Lynn, MA) a $343.5 million firm-fixed-price, indefinite delivery/requirements contract (N00383-19-D-US01) for F404 performance based logistics (PBL) support.

AFLCMC Warner Robins Contracts With Raytheon Advanced for Synthetic Aperture Radar System-2B (ASARS-2B) Development for U-2 Aircraft
On behalf of the U.S. Air Force PEO Intelligence Surveillance and Reconnaissance & Special Operations Forces (PEO ISR & SOF) (Wright-Patterson AFB, OH), the Air Force Life Cycle Management Center (AFLCMC), Warner Robins Air Logistics Complex (WR-ALC) (Warner Robins AFB, GA) awarded Raytheon SAS – Intelligence, Surveillance and Reconnaissance Systems (ISRS) (El Segundo, CA) a $320.0 million undefinitized contract to develop a new version of the Advanced Synthetic Aperture Radar System (ASARS) that flies on the U-2 Dragon Lady aircraft.

AFLCMC Warner Robins Contracts With Sierra Nevada for AC-130W/AC-130J Precision Strike Package Contractor Logistics Support (CLS)
On behalf of the U.S. Air Force PEO Intelligence Surveillance and Reconnaissance & Special Operations Forces (PEO ISR & SOF) (Wright-Patterson AFB, OH), the Air Force Life Cycle Management Center (AFLCMC), Warner Robins Air Logistics Complex (WR-ALC) (Warner Robins AFB, GA) awarded Sierra Nevada Corp. (Sparks, NV) a $317.0 million ID/IQ contract (FA8509-19-D-0001) for contractor logistics support (CLS) for the Precision Strike Package (PSP) in support of the AC-130W Stinger II and AC-130J Ghostrider gunships.

NAVSEA Mods Contract With Northrop Grumman for Additional RCIED Electronic Warfare (JCREW) Increment One Build One (I1B1) Systems
The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded Northrop Grumman Systems Corporation (Herndon, VA) a $245.0 million firm-fixed-price modification under a previously awarded contract (N00024-17-C-6327) to exercise options for the Joint Counter Radio-Controlled Improvised Explosive Device (RCIED) Electronic Warfare (JCREW) Increment One Build One (I1B1) systems full-rate production in support of the Expeditionary Warfare Program Office (PMS 408).

AFLCMC Wright-Patterson Mods Contract With L3 for ACAT III Big Safari Support Services
On behalf of the U.S. Air Force PEO Intelligence Surveillance and Reconnaissance & Special Operations Forces (PEO ISR & SOF) (Wright-Patterson AFB, OH), the U.S. Air Force Life Cycle Management Center (AFLCMC) (Wright-Patterson AFB, OH) awarded L3 Mission Integration Division (MID) (Greenville, TX) two cost-plus-fixed-fee delivery orders with a combined value of $153.5 million under a previously issued basic ordering agreement (FA8620-16-G-3027) for ACAT III Big Safari support services.

NSWCCD Awards SBIR Contract to Seemann Composites for SCRIMP Out-of-Autoclave Composite Fabrication Practices and Procedures
The U.S. Naval Surface Warfare Center, Carderock Div. (NSWCCD) (Bethesda, MD) awarded Seemann Composites, Inc. (SCI) (Gulfport, MS) a $74.4 million cost-plus-fixed-fee, ID/IQ Small Business Innovation Research (SBIR) contract (N00167-19-D-0002) for out-of-autoclave composite fabrication practices and procedures using a proprietary Seemann Composites Resin Infusion Molding Process (SCRIMP).

March 25, 2019 Update

M&A

Cielo Global Holdings Acquires Alytica, LLC
Alytica, LLC is an aerospace and defense consulting firm specializing in emerging global business opportunities, specializing in the the markets of the Kingdom of Saudi Arabia and Gulf Cooperation Council (GCC).

AMMO, Inc. Acquires Jagemann Stamping Co.’s Wisconsin Casing Division
The Casings Division has become one of the largest brass manufacturers in the country, with the capacity to produce more than 300 million pieces of brass each year. The business has complete control over the manufacturing process, resulting in a number of advantages when it comes to the brass and magazines that leave its state-of-the-art facility.

Curtiss-Wright Corp. Acquires Tactical Communications Group, LLC (TCG)
Tactical Communications Group, LLC (TCG) is a designer and manufacturer of tactical data link (TDL) software solutions for critical military communications systems. Their products help to secure and exchange wireless communications, including voice, imagery, text, and command and control messages, between various platforms such as ships, aircraft, weapons, and ground vehicles, and by dismounted soldiers.

Gryphon Technologies, Inc. Acquires Schafer from Belcan, LLC
Arlington, Va.-based Schafer [website] is a provider of scientific, advanced engineering, and technical advisory services specializing in protecting against national security threats. Both Gryphon and Belcan are portfolio companies of AE Industrial Partners, a private equity investor in aerospace and defense, power generation, and specialty industrial companies.

Novume Solutions, Inc. Completes Acquisition of OpenALPR Technology, Inc.
Boston, Mass.-based OpenALPR Technology, Inc. is a provider of automated license plate reader (LPR) technology used by both law enforcement and commercial clients. The company’s software enables automatic license plate and vehicle recognition through virtually any IP camera.

News

AEVEX Aerospace Names Jamon Osborne as Vice President of Business Development and Strategy
With 24 years of enlisted and commissioned military service, Jamon will leverage his unique combination of strategic vision, influential leadership, operational expertise, and business acumen to execute the company’s business development efforts across its three separate business units.

United Launch Alliance Successfully Launches WGS-10 Mission
A United Launch Alliance (ULA) Delta IV rocket carrying the tenth Wideband Global SATCOM (WGS) satellite for the U.S. Air Force lifted off from Space Launch Complex-37 on March 15 at 8:26 p.m. EDT. ULA has been the exclusive launch provider for all ten WGS satellites.

Sid Fuchs Named Chief Operating Officer of Alion Science and Technology
Alion Science and Technology (Alion), headquartered in McLean, VA, announced today that Sid Fuchs has been named Chief Operating Officer (COO) of the company, reporting to Alion Chairman and CEO, Steve Schorer. In this role, he will be responsible for leading all lines of business and program operations.

Lockheed Martin’s First Smart Satellites
Lockheed Martin (NYSE: LMT) announced a new generation of space technology launching this year that will allow satellites to change their missions in orbit. Satellites that launched one, ten or even fifteen years ago largely have the same capability they had when they lifted off. That’s changing with new architecture that will let users add capability and assign new missions with a software push, just like adding an app on a smartphone. This new tech, called SmartSat, is a software-defined satellite architecture that will boost capability for payloads on several pioneering nanosats ready for launch this year.

John Cuomo Appointed CEO and President of VSE Corporation
VSE Corporation (Nasdaq: VSEC) announced today Chief Executive Officer (CEO), President and member of the Board of Directors, Maurice ‘Mo’ Gauthier, will step down next month as a company officer and director after 11 years of dedicated service. The Board has elected John Cuomo to the position of CEO and President and to the Board of Directors effective April 15, 2019.

First Pan-Arab Space Agency Founded in Abu Dhabi
Eleven states on Tuesday signed a charter to establish the Arab Group for Space Collaboration. The group’s first project will be a satellite, named 813, that will monitor environmental and climate changes.

Embraer Announces CEO Succession
Embraer, following shareholder approval of the transaction with Boeing, announces that the current President and CEO of the company, Paulo Cesar de Souza e Silva, concludes a successful professional cycle with the company on April 22, 2019 which is the end of his current two year elected term.

Comtech Telecommunications Corp. Introduces New Micro Deployable X/Y Antennas to the LEO/MEO and HAPS Markets
Comtech Telecommunications Corp. (Nasdaq: CMTL) announced today that its Command & Control Technologies group’s, Space & Component Technology division, which is part of Comtech’s Government Solutions segment, introduced an exciting line of transportable, full motion antennas for tracking Low Earth Orbit (‘LEO’) and Medium Earth Orbit (‘MEO’) satellites and High Altitude Pseudo-Satellites (‘HAPS’).

All Nippon Airways Takes Delivery of Its First A380
Japan’s All Nippon Airways (ANA) has taken delivery of its first A380 at a special ceremony in Toulouse, becoming the 15th operator of the world’s largest passenger aircraft. The delivery ceremony was attended by ANA HOLDINGS President and CEO Shinya Katanozaka and hosted by Airbus CEO Tom Enders.

Contracts

MDA Definitizes Contract Modification With Boeing for the Ground-based Midcourse Defense (GMD) Development and Sustainment Contract (DSC)
The U.S. Missile Defense Agency (MDA) (Huntsville, AL) awarded Boeing Missile and Weapons Division (Huntsville, AL) a $4.14 billion cost-plus-incentive-fee contract (HQ0147-19-C-0004) to partially definitize the $6.56 billion undefinitized contract action (UCA) issued Jan. 31, 2018, on contract HQ0147-12-C-0004 (modification P00438) for the Ground-based Midcourse Defense (GMD) Development and Sustainment Contract (DSC). – CUSTOMERS – U.S. Missile Defense Agency, Redstone Arsenal (MDA) (Huntsville, AL)

NAVAIR HQ Mods Contract With Boeing for 78 F/A-18E/F Full Rate Production (FRP) Aircraft
The U.S. Naval Air Systems Command, Headquarters (NAVAIR HQ) (Patuxent River, MD) awarded Boeing Strike, Surveillance and Mobility (St. Louis, MO) a $4.04 billion fixed-price-incentive-firm-target modification under a previously advance acquisition contract (N00019-18-C-1046) for F/A-18E/F full rate production (FRP) aircraft in support of the F/A-18 & EA-18G Program Management Activity (PMA 265).

NAVSEA Mods Contract With Electric Boat for Additional Fiscal 2019 – Fiscal 2023 Virginia Class Submarines Material
The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded Electric Boat Corp. (Groton, CT) a $2.03 billion cost-plus-fixed-fee modification under a previously awarded contract (N00024-17-C-2100) for additional material (to include long lead time material and economic ordering quantity) associated with the Fiscal 2019 – Fiscal 2023 Virginia class Block V submarines (SSNs 802 – 811).

Australia’s MoD Announces Contract With USA DoD for Peregrine Electronic Warfare Aircraft for the RAAF
On behalf of the Royal Australian Air Force (RAAF) (Canberra, Australia) the Australian Department of Defence (Canberra, Australia), Capability Acquisition and Sustainment Group (CASG) (Canberra, Australia), awarded Gulfstream Aerospace Corp. (Savannah, GA), via a Foreign Military Sale (FMS) through the U.S. Defense Security Cooperation Agency (DSCA) (Washington, DC), an AUD $2.46 billion (USD$1.8 billion) contract for the acquisition of four (4) modified Gulfstream G550 aircraft – to be designated the MC-55A Peregrine”.

Army PEO STRI Contracts With Pinnacle Solutions for TRADOC Aviation Center of Excellence (USAACE) Unmanned Aircraft Systems (UAS) Instruction and Mission Support (IMS)
The U.S. Army Program Executive Office of Simulation, Training & Instrumentation (PEO STRI) (Orlando, FL) awarded Pinnacle Solutions, Inc. (PSI) (Huntsville, AL) a $553.2 million cost-plus-fixed-fee, ID/IQ contract (W900KK-19-D-0006) for Unmanned Aircraft Systems (UAS) Instruction and Mission Support (IMS) in support of the U.S. Army Training and Doctrine Command (TRADOC), Aviation Center of Excellence (USAACE).

NAVSEA Contracts With General Dynamics NASSCO for CVN 68/CVN 78 Class Aircraft Carriers Private Sector Maintenance (PSM)
The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded General Dynamics NASSCO-Norfolk (Bremerton, WA) a maximum $465.2 million cost-cost-plus-incentive-fee, cost-plus-fixed-fee, ID/IQ contract (N00024-19-D-4310) for CVN 68 Class and CVN 78 Class Aircraft Carriers Private Sector Maintenance (PSM).

Army ACC-APG Awards RS3 Task Order to Engineering Solutions & Products for Distributed Common Ground System-Army (DCGS-A) Field Office Fort Hood (FOFH) Training and Fielding Support
The U.S. Army Contracting Command – Aberdeen Proving Ground (ACC-APG), Edgewood (Aberdeen Proving Ground, MD) awarded Engineering Solutions & Products, Inc. (ESP) (Chantilly, VA) a $175.0 million task order under the company’s Responsive Strategic Sourcing for Services (RS3) contract (W15P7T-17-D-0147) for Distributed Common Ground System-Army (DCGS-A) Field Office Fort Hood (FOFH) training and fielding support for the U.S. Army PEO for Intelligence, Electronic Warfare & Sensors (PEO IEW&S) Project Manager, DCGS-A (PM DCGS-A).

AFLCMC Hill Contracts with L3 for the Cockpit-Selectable Height-Of-Burst Sensor (C-HOBS)
On behalf of the U.S. Air Force PEO for Weapons (Eglin AFB, FL), the Air Force Life Cycle Management Center (AFLCMC), Ogden Air Logistics Complex (OO-ALC) (Hill AFB, UT) awarded L3 Fuzing & Ordnance Systems, Inc. (L3 FOS) (Cincinnati, OH) a $131.8 million cost-plus-fixed-fee, ID/IQ contract (FA8213-19-D-0006) for the Cockpit-Selectable Height-Of-Burst Sensor (C-HOBS).

AFLCMC Wright-Patterson Mods Contract With General Atomics for MQ-9 Block 5 UAS Production for FMS to the Netherlands
On behalf of the the U.S. Air Force PEO Intelligence Surveillance and Reconnaissance & Special Operations Forces (PEO ISR & SOF) (Wright-Patterson AFB, OH), the U.S. Air Force Life Cycle Management Center (AFLCMC) (Wright-Patterson AFB, OH) awarded General Atomics Aeronautical Systems, Inc. (GA-ASI) – Aircraft Systems (Poway, CA) a $123.3 million undefinitized contract action (FA8620-19-F-2310) under a previously issued basic ordering agreement (FA8620-15-G-4040) for MQ-9 Reaper Block 5 Unmanned Aerial System (UAS) production.

March 18, 2019 Update

M&A

Shorehill Capital Portfolio Company Tribus Aerospace, LLC Acquires Midwest Precision, LLC
The company specializes in close tolerance CNC machining of all types of stainless steels, nickel alloys, titanium, aluminum, steel, brass and plastics in complex configurations.

Greenbriar Equity Group, L.P. and First Aviation Services, Inc. to Acquire DART Aerospace Ltd From Eagle Copters Ltd. and Era Group, Inc.
DART Aerospace is a provider of mission equipment and aftermarket components for the helicopter and fixed-wing industries. With over 900 STC’s and 4,500 products, DART offers a comprehensive portfolio of mission equipment and related services, replacement parts and tooling for civil and military operators, all major rotorcraft OEMs, completion centers and MRO facilities.

TransDigm Group, Inc. Completes Acquisition of Esterline Technologies Corp.
Esterline is an industry leader in specialized manufacturing with anticipated fiscal year 2018 revenue of approximately $2.0 billion. The company consists of 28 business units organized across eight platforms to deliver specialty aerospace, defense and industrial products. The company employs over 12,500 employees in more than 50 operating locations throughout the world.

CAE, Inc. Completes Acquisition of Bombardier, Inc.’s Business Aircraft Training (BAT) Business
The Bombardier BAT business includes a modern fleet of 12 full-flight simulators (FFSs) (including one deployment already planned for CAE’s fiscal year 2021) and training devices covering the Learjet, Challenger and Global product lines, including the latest large cabin Global 5500, 6500 and 7500 business jets.

DFW Capital Partners Acquires Controlling Equity Stake in Sev1Tech, LLC
Sev1Tech provides information technology, cybersecurity, cloud, and program management services and solutions to U.S. government agencies and major commercial organizations. Founded in 2010, Sev1Tech supports critical mission challenges across the defense, intelligence, homeland security, space, and health markets.

Cubic Corp. Acquires Nuvotronics, Inc.
Durham, N.C.-based Nuvotronics, Inc. is a disruptive technology provider of microfabricated radio frequency (RF) products. The cornerstone of Nuvotronics’ innovation platform is their patented PolyStrata® technology, which was developed under DARPA and enables the company to design and produce uniquely packaged RF devices, such as antennas, filters and combiners, all of which are components in Cubic’s advanced technology product offerings.

Novume Solutions, Inc. Completes Acquisition of OpenALPR Technology, Inc.
Mass.-based OpenALPR Technology, Inc. is a provider of automated license plate reader (LPR) technology used by both law enforcement and commercial clients.

NEWS

United Launch Alliance Successfully Launches WGS-10 Mission
A United Launch Alliance (ULA) Delta IV rocket carrying the tenth Wideband Global SATCOM (WGS) satellite for the U.S. Air Force lifted off from Space Launch Complex-37 on March 15 at 8:26 p.m. EDT. ULA has been the exclusive launch provider for all ten WGS satellites. The WGS-10 satellite, built by the Boeing Company, is an important element of the new high-capacity satellite communications system. Each WGS satellite provides more wideband communications capacity than the entire Defense Satellite Communications System.

Huntington Ingalls Industries Completes Installation of USS George Washington (CVN 73) Main Mast
Huntington Ingalls Industries’ (NYSE:HII) Newport News Shipbuilding division has reached new heights in the refueling and complex overhaul (RCOH) of the aircraft carrier USS George Washington (CVN 73). The shipyard installed the final piece of the ship’s new main mast—the 34-foot upper mast section—that raises the ship’s distinctive profile 123 feet above the flight deck. The RCOH now is 50 percent complete.

DSCA Notifies Congress of Possible Sale of AIM-120C-7 Advanced Medium-Range Air-to-Air Missiles to Australia
The State Department has made a determination approving a possible Foreign Military Sale to Australia of AIM-120C-7 Advanced Medium-Range Air-to-Air Missiles (AMRAAM) and related equipment for an estimated cost of $240.5 million. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale on March 12, 2019.

Hensoldt Announces Framework Agreement with Airbus Helicopters
At the end of 2018, Hensoldt and Airbus Helicopters signed a framework agreement for the delivery of the Airborne Missile Protection System (AMPS). Initially, the agreement will have a term of ten years without any minimum purchase requirement being set. Now the first order has already been placed. Hensoldt will deliver a total of 20 complete AMPS systems for the military multirole helicopter H145M in 2019/2020.

China and Pakistan to Upgrade Their JF-17 Fighter Jet – Pakistan Claims it Carried out an Attack Along the Line Of Control (LOC)
The Pakistan media claimed that JF-17 aircraft was used to carry out an attack along the Line Of Control (LOC) [with India] on February 27 2018.
China and Pakistan plan to upgrade their jointly- produced JF-17 Thunder fighter jet to enhance the its “informatised warfare” capability and weapons which experts says could effectively defend against strong opponents like India.

Lockheed Martin Names New Leaders for Mobility and Fighter Programs
Lockheed Martin (NYSE: LMT) announced Roderick McLean as vice president and general manager for the company’s Air Mobility & Maritime Missions organization, succeeding George Shultz, who will retire later this year. Additionally, Bridget Lauderdale will become vice president and general manager for the Integrated Fighter Group organization, succeeding McLean. Both appointments are effective April 15.

C Series Aircraft Limited Partnership (“CSALP”) to Become Airbus Canada Limited Partnership
CSALP is pleased to announce it will soon change its name to Airbus Canada Limited Partnership. The new name reflects the majority interest of Airbus in the limited partnership since July 1, 2018. The organisation will adopt the Airbus logo as its single visual identity.

Rolls-Royce Takes Major Step Towards Electrifying Flight with Successful Hybrid Aero Propulsion Tests
Rolls-Royce has taken a significant step towards realising our ambition to provide hybrid-electric propulsion systems for the next generation of aviation, with successful ground tests of a hybrid system using our M250 gas turbine – a highly successful engine usually powering helicopters. The tests are part of one of the world’s most comprehensive hybrid aerospace turbine engine development and integration programmes and pave the way for experimental flights on aircraft in 2021.

Cadence Aerospace Names Nick Guerra as Company’s Chief Technology Officer
Cadence Aerospace, a provider of highly complex aerospace components and assemblies to commercial and defense customers, has named Nick Guerra as the Company’s Chief Technology Officer (CTO). With Centers of Excellence based in the U.S. and Mexico, Cadence Aerospace serves the world’s leading manufacturers of aircraft, aerostructures, aeroequipment and other defense platforms.
Reporting to Thomas C. Hutton, Chief Executive Officer of Cadence Aerospace, Mr. Guerra will be responsible for developing and implementing transformational technologies that will enable step change improvements in productivity, quality and process standardization.

KAL Capital Markets Announces its 10th Aerospace and Defense Investment Banking Transaction
KAL Capital Markets LLC (KAL Capital), an aerospace and defense investment bank, is pleased to announce that it has completed its 10th transaction since the firm was launched in 2017.
“We’re extremely proud of reaching our tenth closed transaction since launching the firm two years ago and feel privileged to serve the firm’s diverse set of Aerospace and Defense clients”, commented Ryan Murphy when asked about this significant milestone. “We’ve continue to create record valuations for our clients in the $25 to $250 million valuation range and expect that part of the market to remain very supportive in 2019.”

Trevor Bohn shared, “In seven of our ten transactions we advised business founders as they completed change of control transactions with public companies, international buyers or private equity funds. Additionally, we completed a divestiture for Triumph Group Inc. (TGI: NYSE) as well as transactions for portfolio companies of private equity investors. We believe that level of client mix fosters the most real-time information on trends, priorities and goals of the universe of buyers which helps the firm deliver differentiated advice to our core sell-side clientele.”

KAL Capital’s 10 aerospace and defense investment banking transactions included advising All Metals Processing

Air Transport Components
Beaver Aerospace and Defense
California Brazing
Dallas Aeronautical Services
Florida Turbine Technologies
Mountain Secure Systems
Triumph Group
PrimeFlight Aviation Services
STS Aviation GroupFor additional information on these transactions, please visit KAL Capital’s website at http://www.kalcapitalmarkets.com

SAIC Announces CEO Transition
Science Applications International Corp. (NYSE: SAIC) announced today that Tony Moraco will retire as chief executive officer effective July 31, 2019, and that its Board of Directors has elected Nazzic S. Keene, currently the corporation’s chief operating officer, to succeed him.

Sciaky Joins the Alliance for the Development of Additive Processing Technologies (ADAPT) to Expand Adoption of its Electron Beam Additive Manufacturing (EBAM®) in Aerospace and Other Sectors
Sciaky, Inc., a subsidiary of Phillips Service Industries, Inc. (PSI), and leading provider of metal additive manufacturing (AM) solutions, announced today that it has joined the Alliance for the Development of Additive Processing Technologies (ADAPT) to expand adoption of its Electron Beam Additive Manufacturing (EBAM®) technology in aerospace and other sectors. Headquartered at Colorado School of Mines in Golden, CO, ADAPT is an industry-academia consortium that advances data informatics and characterization technologies to Optimize processes, materials, and parts for Additive. A barrier to AM process qualification that ADAPT is excited to work on, in collaboration with Sciaky, is the lack of fundamental understanding about how the process variables effect material microstructure and final part properties.

Contracts

Deutsche Lufthansa Contracts With Airbus SAS for Additional A350-900 Wide-Body Airliners
Deutsche Lufthansa AG (Frankfurt, Germany) awarded Airbus SAS, Airbus (Toulouse Blagnac, France) a USD $6.5 billion contract based upon list prices for twenty (20) additional A350-900 Wide-Body airliners.

Deutsche Lufthansa AG Contracts With Boeing Commercial Airplanes Group for Boeing 787-9 Dreamliner Airliners
Deutsche Lufthansa AG (Frankfurt, Germany) awarded Boeing Commercial Airplanes Group, Manufacturing (Renton, WA) a USD $5.8 billion contract for twenty (20) Boeing 787-9 Dreamliner Airliners.

Army PEO STRI Awards Jacobs Technology the Huachuca Training and Support Contract (HTASC)
The U.S. Army Program Executive Office of Simulation, Training & Instrumentation (PEO STRI) (Orlando, FL) awarded Jacobs Technology – Unified and Special Operations Group (USOG) (Tampa, FL) a $785.0 million cost-plus-fixed-fee, ID/IQ contract (W900KK-19-D-0004) for the Huachuca Training and Support Contract (HTASC) in support of the U.S. Army Intelligence Center of Excellence (ICoE), located at Fort Huachuca, AZ

Army ACC-RSA Contracts With Northrop Grumman for Four Complete Battery Sets of IAMD Battle Command System (IBCS) Production Hardware/Software for FMS to Poland
The U.S. Army Contracting Command – Redstone (ACC-RSA) (Redstone Arsenal, AL) awarded Northrop Grumman Missile Defense and Protective Systems Division (Huntsville, AL) a $713.0 million firm-fixed-price contract (W31P4Q-19-C-0003) for the procurement of four complete battery sets of Integrated Air and Missile Defense (IAMD) Battle Command System (IBCS) production hardware and software for the government of Poland under the Foreign Military Sales (FMS) program.

NAVFAC Southwest Awards Five Contracts for New Construction, Renovation, and Repair of Airfield Paving Construction at Various Government Installations in AoR
The U.S. Naval Facilities Engineering Command, Southwest (NAVFAC Southwest) Capital Improvement Contract Core (San Diego, CA) award five, five-year, multiple award, ID/IQ contracts, with a maximum value of $495.0 million, for new construction, renovation, and repair of airfield paving construction at various government installations in CA, AZ, NV, UT, CO, and NM.

NAVSEA Mods Contract With Raytheon for Additional LRIP Air and Missile Defense Radars (AMDRs)
The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded Raytheon SAS – Integrated Communication Systems (Marlborough, MA) a $402.7 million fixed-price-incentive-firm modification under a previously awarded contract (N00024-14-C-5315) to exercise options for three low-rate initial production (LRIP) Air and Missile Defense Radars (AMDRs) to be deployed on DDG 51 Flight III-class ships.

Navy SSP Contracts With Northrop Grumman for Common Missile Compartment (CMC) Underwater Launcher Hardware Production
The U.S. Navy Strategic Systems Programs (SSP) (Washington Navy Yard, DC) awarded Northrop Grumman Maritime Systems (Sunnyvale, CA) a $273.1 million cost-plus incentive-fee, cost-plus-fixed-fee, firm-fixed-price contract (N00030-19-C-0015) for Common Missile Compartment (CMC) underwater launcher hardware production.

AFLCMC Eglin Contracts With Boeing for B-52H Long Range Stand-Off (LRSO) Cruise Missile Weapon System Integration
On behalf of the U.S. Air Force PEO for Weapons (Eglin AFB, FL), the Air Force Life Cycle Management Center (AFLCMC), Air Armament Center (AAC) (Eglin AFB, FL) awarded Boeing Global Services Government – Engineering, Modifications & Maintenance (Oklahoma City, OK) a $250.0 million ID/IQ contract (FA2103-19-D-3000) for B-52H Long Range Stand-Off (LRSO) Cruise Missile weapon system integration.

Army CENAE Contracts With Sevenson Environmental Services for Raymark Superfund Site Operable Units (OUs) 3/4/6 Remedial Action
The U.S. Army Engineer District, New England (CENAE) (Concord, MA) awarded Sevenson Environmental Services, Inc. (Niagara Falls, NY) a $99.0 million firm-fixed-price, ID/IQ contract (W912WJ-19-D-0012) for remedial action for Operable Units (OUs) 3, 4 and 6 of the Raymark Superfund Site in Stamford, CT.

NAVFAC Southeast Contracts With NCS/EML SB JV for NAS Whiting Field Base Operating Support (BOS) Services
The U.S. Naval Facilities Engineering Command, Southeast (NAVFAC Southeast) (Jacksonville, FL) awarded NCS/EML SB Joint Venture, LLC (Louisville, KY) a $96.7 million firm-fixed-price, ID/IQ contract (N69450-19-D-1740) for base operations support (BOS) services at Naval Air Station (NAS) Whiting Field and outlying areas.

NAVAIR HQ Contracts With Northrop Grumman for MQ-4C Triton Sustaining Engineering and Logistics Support
The U.S. Naval Air Systems Command, Headquarters (NAVAIR HQ) (Patuxent River, MD) awarded Northrop Grumman Autonomous Systems Development Center (San Diego, CA) an $89.5 million cost-plus-fixed-fee contract (N00019-19-C-1020) for sustaining engineering and logistics support for the U.S. Navy MQ-4C Triton Unmanned Aircraft System (UAS) Early Operating Capability (EOC) in support of the Persistent Maritime Unmanned Aircraft Systems Program Office (PMA 262).

NAWCWD Contracts With Lockheed Martin for Advanced Insertion and Integration RDT&E of Lockheed Martin Baseline Systems
The U.S. Naval Air Warfare Center Weapons Div. (NAWCWD) (China Lake, CA) awarded Lockheed Martin Missiles and Fire Control (MFC) – Orlando (Orlando, FL) an $84.1 million cost-plus-fixed-fee, ID/IQ contract (N68936-19-D-0020) for research, development, test and evaluation (RDT&E) for advanced insertion and integration of Lockheed Martin baseline systems.

Army ACC-RI Awards EAGLE – 2018 BOA Delivery Order to Synergy Logistics Services for Logistics Support Services at Fort Gordon, GA
The U.S. Army Contracting Command – Rock Island (ACC-RI) (Rock Island, IL) awarded Synergy Logistics Services, LLC (North Kansas City, MO) an $81.5 million delivery order (W52P1J-19-F-0173) under the company’s Enhanced Army Global Logistics Enterprise (EAGLE) – 2018 basic ordering agreement (BOA) (W52P1J-17-G-0100) for logistics support services, including maintenance, supply, and transportation support, at Fort Gordon, GA.

USSOCOM SOF AT&L Contracts With Barrett Firearms Manufacturing for Advanced Sniper Rifles (ASRs)
The U.S. SOCOM Special Operations Forces Acquisition, Technology and Logistics (USSOCOM SOF AT&L) (Tampa, FL) awarded Barrett Firearms Mfg, Inc. (Christiana, TN) an estimated $49.9 million firm-fixed-price, ID/IQ contract (H92403-19-D-0002) for the purchase of Advanced Sniper Rifles (ASRs) in support of U.S. Special Operations Command (USSOCOM), Program Executive Office Special Operations Forces Warrior (PEO-SW).

March 11, 2019 Update

M&A

Greenbriar Equity Group, L.P. Portfolio Company STS Aviation Group Acquires Triumph Aviation Services – NAAS Division From Triumph Group, Inc.
San Antonio, Texas-based Triumph Aviation Services – NAAS Division, Inc. provides line maintenance support to airlines, MROs, government operators and OEMs and has a specialization in fuel systems maintenance, leak detection and bladder cell repair.

Boeing Co. Acquires ForeFlight, LLC From Silver Lake Partners
Houston, Texas-based ForeFlight is a provider of innovative mobile and web-based flight planning and navigation software.

Electro Technik Industries, Inc. Acquires RF Techniques, Inc.
San Jose, Calif.-based RF Techniques, Inc. is a designer and manufacturer specializing in high temperature brazed high power resistors, high power attenuators and high power terminations for high-reliability microwave and RF applications.

Arlington Capital Partners Portfolio Company Tyto Athene, LLC Acquires Island Information Technology Consultants, Inc. (IITC)
Chester, Md.-based Island Information Technology Consultants, Inc. (IITC) is a provider of mission-critical unified communications solutions to the Intelligence Community.

Cerberus Capital Management, L.P. Completes Acquisition of Sparton Corp.
Schaumburg, Illinois-based Sparton Corp. (NYSE: SPA) is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, field service, and refurbishment.

Asahi Kasei Corp. Subsidiary ZOLL Medical Corp. Acquires Golden Hour Data Systems, Inc.
San Diego, Calif.-based Golden Hour Data Systems is a provider of solutions for patient charting and revenue cycle management (RCM) to the EMS market.

Henry Schein, Inc. Completes Acquisition of North American Rescue, LLC (NAR) From Blue Wolf Capital Partners, LLC
Greer, S.C.-based North American Rescue, LLC (NAR) is a provider of survivability and casualty-care medical products to the defense and public-safety markets.

Liberty Hall Capital Partners, L.P. Acquires Onboard Systems, Inc.
Vancouver, Wash.-based Onboard Systems, Inc. is the leading global provider of external cargo handling equipment for civil and military helicopters, with factory installed proprietary products on over 30 helicopter models serving over 1,000 original equipment and aftermarket customers.

Kratos Defense & Security Solutions, Inc. Acquires an 80.1% Interest in Florida Turbine Technologies, Inc. and FTT Core, LLC
Jupiter, Fla.-based FTT is a turbomachinery design and manufacturing company specializing in engineering, development, and testing of advanced gas turbine engines, propulsion components, and systems for military and commercial applications.

News

General Atomics Successfully Demonstrates Aluminum Power System To Power Remotely Operated Underwater Vehicle
General Atomics Electromagnetic Systems (GA-EMS) has successfully completed the first end-to-end demonstration of its Aluminum Power System (ALPS), powering an underwater Remotely Operated Vehicle (ROV) at a GA-EMS test tank facility in San Diego.

NASA’s Deep Space Exploration System is Coming Together
NASA will soon return humans to the Moon for decades to come, and the system that will transport astronauts from Earth to the Gateway near the Moon is literally coming together. Building on progress in 2018, most of the major manufacturing for the first mission is complete, and this year, teams will focus on final assembly, integration, and testing, as well as early work for future missions. NASA is focused on launching the first mission, Exploration Mission-1 (EM-1), in 2020 to send an Orion spacecraft on the Space Launch System (SLS) rocket from the modernized spaceport at Kennedy Space Center in Florida on an uncrewed test flight before sending crew around the Moon and back on the second mission, Exploration Mission-2 (EM-2) by 2023.

Northrop Grumman, MBDA Demonstrate Integration of Missile Family with Next-Generation Battle Manager
Northrop Grumman Corporation (NYSE: NOC) and MBDA have successfully completed a joint, company-funded effort to incorporate the Common Anti-air Modular Missile (CAMM) family into the Integrated Air and Missile Defense (IAMD) Battle Command System (IBCS). CAMM is the first non-U.S. missile system to be integrated with IBCS.

Poland plans to upgrade Mi-24 fleet
The Polish Armament Inspectorate announced that a technical dialogue has begun with regards to upgrades of the Mi-24 helicopters. The whole procedure is aimed at assessing whether the modernized aircraft would meet the initial requirements defined within the scope of their armament, communication, self-protection, navigation and electronic countermeasures.

SAIC Hires Bob Ritchie to Lead Software Practice
Science Applications International Corp. (NYSE: SAIC) announced today that Bob Ritchie will lead the company’s software practice, effective March 11. Ritchie replaces Kevin Ikeda, who retires this month, and will report to Josh Jackson, executive vice president and general manager of the Solutions and Technology Group.

SpaceX Crew Dragon Splashdown Marks Success of First NASA Commercial Crew Flight Test
NASA passed a major milestone Friday in its goal to restore America’s human spaceflight capability when SpaceX’s Crew Dragon returned to Earth after a five-day mission docked to the International Space Station.

U.S. Navy Partners with Sarcos Robotics for Powered Full-Body Exoskeletons and Inspection Robots to Optimize Shipyard Operations
Today, Sarcos Robotics, a global leader in robotic systems that augment rather than replace humans working in the industrial, public safety and military sectors, announced its partnership with Puget Sound Naval Shipyard (PSNS) & Intermediate Maintenance Facility (IMF) to evaluate and deploy robotic technologies, including full-body, powered exoskeletons and man-portable inspection robots, for use in naval shipyards.

Nicolas Debove New COO of Thales Deutschland
Since the beginning of February Nicolas Debove (50) has been the new Chief Operating Officer (COO) and Vice President Operations of Thales Deutschland. He succeeds Jens Nielsen who has left the company. Debove reports to Dr Christoph Hoppe, the Chairman of the Management Board of Thales Deutschland.

Contracts

NIWC Atlantic – Charleston Awards Seaport-e Task Order to SAIC for Support Services
The U.S. Naval Information Warfare Center Atlantic – Charleston (North Charleston, SC) awarded Science Applications International Corp. (SAIC) (Reston, VA) a $90.0 million task order (N65236-19-F-3034) under the company’s existing Seaport-e contract (N00178-04-D-4119) for support services.

Indian MoD Contracts With Rosoboronexport for 10-Year-Lease of a 3rd Russian Nuclear-Class Akula Submarine
On behalf of the Indian Navy (Bharatiya Nau Sena) (New Delhi, India), the Indian Ministry of Defense (New Delhi, India) awarded JSC Rosoboronexport (Moscow, Russia) a USD $3.0 billion contract for the ten (10) year-lease of a third (3rd) Russian Akula class nuclear attack submarine.

India’s MoD Contracts With Rosoboronexport for Multiple MiG-29 Jets to Improve Air Combat Strength
On behalf of the Indian Air Force IAF (Bharatiya Vayu Sena) (IAF) (New Delhi, India), the Indian Ministry of Defense (New Delhi, India) awarded JSC Rosoboronexport (Moscow, Russia) a USD $964.0 million contract to supply twenty-one (21) MiG-29K Fulcrum fighter aircraft.

Army ACC-APG Awards Three Contracts for Vital Torso Protection – Full Rate Production for ESAPI and XSAPI Hard Armor Plates
On behalf of the U.S. Army PEO Soldier (Fort Belvoir, VA), the U.S. Army Contracting Command – Aberdeen Proving Ground (ACC-APG) (Aberdeen Proving Ground, MD) awarded three, four-year, multiple award, cost-plus-fixed-fee, firm-fixed-price, ID/IQ, with a value of $704.2 million, for Enhanced Small Arms Protective Insert (ESAPI) and X-Small Arms Protective Insert (XSAPI) hard armor plates.

Russia’s Government Contracts With Rostec for Ansat and Mi-8AMT Helicopters for a new Federation-Wide Medical Evacuation Service
On behalf of the Russian National Service of Medical Aviation, the Minister of Industry and Trade of the Russian Federation Denis awarded the State Corporation for Assistance to Development, Production and Export of Advanced Technology Industrial Product – Rostec (Moscow, Russia), and its subsidiaries JSC Russian Helicopters (Moscow, Russia) and Aviation Capital Services, LLC (Moscow, Russia) a contract of undisclosed duration and value to supply a total of 152 medical helicopters including agreements on after-sales service.

UK’s AWE plc Contracts With AECOM on Key Project for the Nuclear Deterrence Program
On behalf of the UK Ministry of Defence (MoD) (London, England, UK), AWE plc (Atomic Weapons Establishment) (Aldermaston, Berkshire, England, UK) awarded AECOM Technology Corp. (Los Angeles, CA) a twelve (12)-year USD $500.0 million contract to act as the delivery partner to AWE for its Nuclear Capability project, a key component of the U.K. government’s nuclear deterrence program.

Australia’s Naval Group Subcontracts With Australian Submarine Corp. (ASC) for Design of the new Attack Class Submarines Under the Project Sea 1000 Future Submarine Project
On behalf of the Australian Department of Defence (Canberra, ACT, Australia) and Royal Australian Navy (RAN) (Canberra, ACT, Australia), the Naval Group Australia Pty. Ltd. (Keswick, South Australia, Australia) awarded Australian Submarine Corp. (ASC) Pty. Ltd. (Port Adelaide, Australia) a three (3)-year AUD $605.0 million (USD $427.4 million) subcontract for the detailed architecture for the hull, including the placement of main systems of the Attack class Submarine.

NAVAIR HQ Contracts With Northrop Grumman for AGM-88G AARGM-ER Propulsion System (PS) Engineering and Manufacturing Development (EMD) Phase
The U.S. Naval Air Systems Command, Headquarters (NAVAIR HQ) (Patuxent River, MD) awarded Northrop Grumman Innovation Systems – Defense Electronics Systems Division (Northridge, CA) a $322.5 million cost-plus-incentive-fee contract (N00019-19-C-0050) for the Engineering and Manufacturing Development (EMD) Phase of the AGM-88G, Advanced Anti-Radiation Guided Missile – Extended Range (AARGM-ER) Propulsion System (PS) in support of the Direct & Time Sensitive Strike Weapons Program Office (PMA 242).

USAF ACC Langley Awards Alliant 2 (A2) Task Order to General Dynamics for the 480th Intelligence, Surveillance and Reconnaissance Wing (480 ISRW) Technical Operations Support (TOS)
The U.S. Air Force ACC, Acquisition Management and Integration Center (AMIC) (Langley AFB, VA) awarded General Dynamics Information Technology (GDIT) (Fairfax, VA) a not-to-exceed $217.0 million cost-plus-fixed-fee task order (FA4890-19-F-A022) under the company’s Alliant 2 (A2) Unrestricted contract (47QTCK-18-D-0003) for the 480th Intelligence, Surveillance and Reconnaissance Wing (480 ISRW) technical operations support (TOS).

NAVSEA Contracts With HII San Diego Shipyard for USS Rushmore (LSD 47) Dry-Docking Selected Restricted Availability (DSRA)
The U.S. Naval Sea Systems Command (NAVSEA) (Washington, DC) awarded HII San Diego Shipyard, Inc. (San Diego, CA) a $154.2 million firm-fixed-price contract (N00024-19-C-4410) for the execution of USS Rushmore (LSD 47) fiscal year 2019 Dry-Docking Selected Restricted Availability (DSRA).

NIWC Atlantic – Charleston Awards Seaport-e Task Order to SAIC for Support Services
The U.S. Naval Information Warfare Center Atlantic – Charleston (North Charleston, SC) awarded Science Applications International Corp. (SAIC) (Reston, VA) a $90.0 million task order (N65236-19-F-3034) under the company’s existing Seaport-e contract (N00178-04-D-4119) for support services.

KAL Capital Advises Triumph Group (NYSE: TGI) on the Sale of NAAS to STS Aviation Group

LONG BEACH, CA – March 6, 2019

KAL Capital is pleased to announce their second transaction over a two week period.

Triumph Group’s (NYSE: TGI) NAAS Division has been acquired by STS Aviation Group. KAL Capital Markets served as the sell-side investment banking advisor to Triumph Group.

NAAS provides line maintenance support to airlines, MROs, government operators and OEMs and has a specialization in fuel systems maintenance, leak detection and bladder cell repair.
The company is headquartered in San Antonio, Texas and employs approximately 200 people who are co-located at customer sites at more than 20 North American and two European locations.

Please see the official Triumph Group release here.

KAL Capital Advises on the Sale of FTT to Kratos (NASDAQ: KTOS)

We are pleased to announce that our client Florida Turbine Technologies (FTT) has been acquired by Kratos Defense & Security Solutions (NASDAQ: KTOS). KAL Capital Markets served as the exclusive investment banking advisor to FTT.

FTT specializes in the engineering, development, and testing of gas turbines, propulsion components, turbopumps, and systems for military and commercial aircraft, space propulsion, as well as industrial applications including clean power generation, and oil and gas.

FTT was founded in 1998 and is based in Jupiter, FL. The company has additional offices in Oklahoma, Puerto Rico, Canada, Germany, and the United Kingdom.
 
Please see the official release here..

Globe Newswire Release

February 25, 2019 Update

A&D News

Lockheed Martin, Diehl and Saab Unveil Collaboration to Counter Emerging Short and Medium-Range Threats with Falcon Weapon System
Falcon integrates Diehl’s 40-kilometer range Infra-Red Imaging System Tail/Thrust Vector-Controlled (IRIS-T) SLM interceptor and vertical launcher, Saab’s 360-degree AESA Giraffe 4A radar through Lockheed Martin’s flexible SkyKeeper command and control battle manager.

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).

Magellan Aerospace Opens New Manufacturing and Assembly Plant in India
Magellan Aerospace Corporation (“Magellan”) announced today, the opening of the company’s manufacturing and assembly facility in India. The new 100,000 square foot Magellan Aerospace (India) Pvt. Ltd. facility, constructed on seven acres in Hitech Defence and Aerospace Park (Aerospace SEZ Sector) in Devanahalli, near the Bangalore International Airport, was completed at the end of 2018 and the process of installing and commissioning the high speed machining centres is underway.

U.S. Approves Sale of Missile Defense System for Air India One
The Trump administrations approved purchase of the two systems known as Large Aircraft Infrared Countermeasures (LAIRCAM) and Self-Protection Suites (SPS) for an estimated cost of USD 190 million, the US Defence Security Cooperation Agency (DSCA) said in a notification to the Congress last week.

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.

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.

Safran to Build a New Plant in India to Make Parts for the LEAP Engine
Philippe Petitcolin, Chief Executive Officer of Safran, and Shri K.Chandrashekar Rao, Hon’ble Chief Minister of Telangana, announced that Safran Aircraft Engines would build a new plant in Hyderabad to make parts for the LEAP turbofan engine from CFM International.

Aerion Selects Spirit AeroSystems for AS2 Supersonic Business Jet Program
Aerion Corporation and Spirit AeroSystems [NYSE: SPR] announced today that they have entered into a collaboration agreement for the preliminary design of the AS2’s forward, pressurized fuselage.

PAE Appoints James Benton to Chief Information Officer
PAE has named James Benton its chief information officer. Having served as interim CIO since August 2018, the permanent appointment recognizes Benton’s contributions during his four-year tenure at PAE.

Kellstrom Defense Partners With Sabena technics for a Multiyear Supplier Agreement
Kellstrom Defense Aerospace Inc. (“KDA”) has been selected by Sabena technics as a partner for the support of C-130 aircraft maintenance. KDA will provide a wide range of aftermarket parts support and component repair and overhaul services under this multiyear agreement.

Huntington Ingalls Industries Delivers Guided Missile Destroyer Paul Ignatius (DDG 117) to U.S. Navy
Huntington Ingalls Industries’ (NYSE:HII) Ingalls Shipbuilding division delivered the Arleigh Burke-class guided missile destroyer Paul Ignatius (DDG 117) to the U.S. Navy today with shipbuilders, ship’s force and representatives of Supervisor of Shipbuilding, Gulf Coast in attendance.

GA-ASI’s New Block 50 Ground Control Station Flies MQ-9 Reaper
The U.S. Air Force’s new Block 50 Ground Control Station (GCS) – developed by General Atomics Aeronautical Systems, Inc. (GA-ASI) – for the first time controlled an MQ-9 Reaper® on January 8th from the GA-ASI Gray Butte Flight Operations Facility near Palmdale, Calif.

GE Aviation’s on Wing Support Expanding with New Facility Near Cincinnati
GE Aviation’s On Wing Support Center in the Cincinnati/Northern Kentucky region is expanding to meet the growing demand for its engine repair services.

M&A

Aeronautics Ltd. to be Acquired by Rafael Advanced Defense Systems Ltd. and Businessman Avichai Stolero
Yavne-based Aeronautics Ltd. specializes in the development, production, integration and operation of UAV systems. The company provides integrated turnkey solutions based on unmanned systems platforms, payloads and communications for defense and civil applications. Other products include observation balloons, bomb fuses, and advanced navigational systems.

Aurora Capital Partners Portfolio Company National Technical Systems, Inc. (NTS) Acquires Sci-Lab Materials Testing, Inc.
Kitchener, Ontario, Canada-based Sci-Lab Materials Testing, Inc. is a regional leader in qualification testing with a comprehensive suite of capabilities, including environmental, dynamics, durability, reliability, and materials testing and certification services for a variety of materials and products, including land, air, and sea vehicle components, electronic goods, plastics, rubbers, metals, coatings, textiles, adhesives, fasteners, composites, and chemicals.

Greenbriar Equity Group Portfolio Company Whitcraft Group Acquires Form 3D Solutions & Manufacturing, LLC
Dover, N.H.-based Form 3D Solutions, LLC is an additive manufacturing and engineering company specializing in developing and producing precision titanium and nickel alloy parts using 3D printing.

Gryphon Investors Portfolio Company JENSEN HUGHES Acquires Technical Response Planning Corp. (TRP)
Houston, Texas-based Technical Response Planning Corp. (TRP) is a market leader and pioneer in emergency management and business continuity planning software and consulting mainly for the Power, Oil & Gas industry and more recently the automotive, manufacturing and transportation industries.

India’s Lohia Group Acquires L&S Light and Strong Ltd
Gedera, Israel-based Light & Strong, Ltd designs and manufactures antennas, domes, UAV outer shell components, and composite material components for aircraft. Products include instrument panels, glare shields, and interior parts for Gulfstream airplanes; fuselages and wings for the Hermes 450 UAV; an optical bench for the housing of precision cameras; and products for the conversion of passenger aircraft to cargo aircraft, including air conditioning ducts, upper and lower galley, ceilings, liners, and storage compartments.

Capgemini SE Completes Acquisition of Leidos Cyber
Leidos Cyber provides to its enterprise clients a holistic platform that services their entire security architecture demands, including integrated offerings for security combined with managed security services. Its customers include primarily FORTUNE 500® companies across multiple sectors.

Hexagon AB to Acquire Thermopylae Sciences and Technology, LLC
Arlington, Va.-based Thermopylae Sciences and Technology, LLC is a software provider primarily focused on the U.S. government and defence market that specializes in geospatial applications, mobile frameworks, and cloud computing for enhanced location intelligence.

Boeing-Embraer Partnership Receives Shareholder Approval
The proposed strategic partnership between Boeing [NYSE: BA] and Embraer [B3: EMBR3,NYSE: ERJ] was approved today by Embraer’s shareholders during an Extraordinary General Shareholders’ Meeting held at the company’s headquarters in Brazil.

Huntington Ingalls Industries, Inc. Completes Acquisition of Fulcrum IT Services, LLC From Boyne Capital Partners and Grindstone Partners, LLC
Centreville, Va.-based Fulcrum IT Services, LLC is an information technology and government consulting company. Core areas include Advanced Technology, Cyber, Information Operations, Intelligence Operations, C5ISR, and Healthcare Systems.

Contracts

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.

USAF SMC/LE Contracts With SpaceX for Evolved Expendable Launch Vehicle (EELV) Phase 1A-6 Launch Services
The U.S. Air Force SMC/PEO Space Systems, Launch Enterprise Directorate (SMC/LE) (El Segundo, CA) awarded Space Exploration Technologies Corp. (SpaceX) (Hawthorne, CA) a $297.0 million firm-fixed-price contract (FA8811-19-C-0004) for Evolved Expendable Launch Vehicle (EELV) Phase 1A-6 launch services.

Army ACC Fort Carson Contracts With Tlingit Haida Tribal Business Corp. for Base Operations Support Services (BOSS)
The U.S. Army Contracting Command, MICC, Fort Carson (Fort Carson, CO) awarded Tlingit Haida Tribal Business Corp. (THTBC) (Juneau, AK) a $142.1 million cost-plus-fixed-fee contract (W911RZ-19-C-0002) for base operations support services (BOSS) in support of the Directorate of Public Works (DPW) functions and services.

Lockheed Martin Contracts With CPI Aerostructures for F-16V Structural Assemblies
Lockheed Martin Aeronautics Co., Fort Worth Operations (Fort Worth, TX) awarded CPI Aerostructures, Inc. (Edgewood, NY) a multi-year contract of undisclosed value to manufacture structural assemblies for the F-16V aircraft, the world’s most technologically advanced fourth generation fighter.

Army ACC-WRN Contracts With Canadian Commercial Corp./General Dynamics for Light Armored Vehicle (LAV) Obsolescence Kit (ObK) Production
The U.S. Army Contracting Command – Warren (ACC-WRN) (Warren, MI) awarded Canadian Commercial Corp. (CCC) (Ottawa, ON) a $37.2 million contract for Obsolescence Kit (ObK) production for the Light Armored Vehicle (LAV) Reset Program in support of the U.S. Marine Corps (USMC) Light Armored Vehicles (LAV) Program Manager.

DLA Aviation Contracts With FAG Aerospace for Cylindrical Roller Bearings
DLA Aviation (Richmond, VA) awarded FAG Aerospace Inc. (Stratford, Ontario, Canada) a $6.2 million purchase order (SPE4A6-19-P-7788) for cylindrical roller bearings (NSN: 3110-01-295-1941, P/N: SB2561-101).

Army ACC-PICA Mods Contract With Northrop Grumman for M1156 Precision Guidance Kits (PGKs)
Picatinny (ACC-PICA) (Picatinny Arsenal, NJ) awarded Northrop Grumman Innovation Systems – Armament Systems Division (Plymouth, MN) a $173.7 million firm-fixed price modification (P00059) under a previously awarded contract (W15QKN-13-C-0074) for M1156 Precision Guidance Kits (PGKs) in support of the Office of the Product Manager Precision Fire & Mortars (PdM PFM)/Product Manager Combat Ammunition Systems (PM CAS).

NAWCAD Contracts With BAE Systems for Mobile Deployable Command, Control, Communications, Computers, Combat Systems, Intelligence, Surveillance, and Reconnaissance (C5ISR) Systems and Subsystems (MDC5ISR)
The U.S. Naval Air Warfare Center Aircraft Division – Pax River (NAWCAD) (Patuxent River, MD) awarded BAE Systems Technology Solutions & Services, Inc. (TSS) (Rockville, MD) a $90.5 million cost-plus-fixed-fee, ID/IQ contract (N00421-19-D-0033) for Mobile Deployable Command, Control, Communications, Computers, Combat Systems, Intelligence, Surveillance, and Reconnaissance (C5ISR) Systems and Subsystems (MDC5ISR) in support of the Special Communications Mission Solutions (SCMS) Division (AD-4.11.4).

Navy MSFSC Contracts With CIRCOR for a Broad Range of Pump Parts for Various Military Sealift Command (MSC) Vessels
The U.S. Navy Military Sealift Fleet Support Command (MSFSC) (Norfolk, VA) awarded CIRCOR International, Inc. (Warren, MA) an estimated $13.3 million indefinite delivery/requirements contract (N32205-19-D-9006) for a broad range of pump parts in support of refurbishment and maintenance of existing pumps installed on various Military Sealift Command (MSC) vessels.

Newport News Shipbuilding Contracts With Fairbanks Morse for Emergency Diesel Generator (EDG) Sets for U.S. Navy Aircraft Carriers CVN-80/CVN-81
Newport News Shipbuilding (Newport News, VA) awarded Fairbanks Morse, LLC (Beloit, WI) a contract of undisclosed value to build and deliver the Emergency Diesel Generator (EDG) sets for two future US Navy nuclear-powered aircraft carriers, the USS Enterprise (CVN 80) and CVN 81.

NIWC Pacific Awards Seaport-e Task Order to Leidos for Key Management and Unmanned Systems (Code 58120) Support
The U.S. Naval Information Warfare Center Pacific (NIWC Pacific) (San Diego, CA) awarded Leidos, Inc. (Reston, VA) a $86.7 million task order (N66001-19-F-3500) under the company’s existing Seaport-e contract (N00178-14-D-7578) for support to the Key Management and Unmanned Systems (Code 58120).

Army ACC-RSA Contracts With Radiance Technologies for SETA Services, Space and Cyberspace Science and Technology (S&T) Development Support
The U.S. Army Contracting Command – Redstone (ACC-RSA) (Redstone Arsenal, AL) awarded Radiance Technologies, Inc. (Huntsville, AL) a $77.4 million cost-plus-fixed-fee contract (W9113M-19-F-0016) for system engineering technical and assistance (SETA) services, space and cyberspace science and technology (S&T) development support.

Major North American Operator Contracts With Vision Technologies Systems for Aircraft Heavy Maintenance Services
A awarded Vision Technologies Systems, Inc. (VT Systems) (Alexandria, VA) an agreement with a value of about $600m (approximately SGD813 million) to provide aircraft heavy maintenance services.

USAF AFRL RV Contracts With LoadPath LLC for Advanced Spacecraft Systems with Integrated Structural Thermal Technologies (ASSISTT)
The U.S. Air Force Research Laboratory – Space Vehicles Directorate (AFRL RV) (Kirtland AFB, NM) awarded Loadpath, LLC (Albuquerque, NM) a $14.9 million cost-reimbursement contract (FA9453-19-C-0002) for Advanced Spacecraft Systems with Integrated Structural Thermal Technologies (ASSISTT).

Air Vanuatu Contracts With Airbus for Multiple A220 Airliners
Air Vanuatu, the national flag carrier of the Pacific island nation of Vanuatu, has signed a firm order with Airbus for four (4) A220s (two (2) A220-100s and two (2) A220-300s).
Air Vanuatu’s first ever order with Airbus makes it the launch customer of the A220 in the Pacific region.

USAF ACC Langley Contracts With Akima for the 705th Combat Training Squadron (CTS) Command and Control Technical Support Contract (C2TSC)
The U.S. Air Force ACC, Acquisition Management and Integration Center (AMIC) (Langley AFB, VA) awarded Akima, LLC (Colorado Springs, CO) a $34.5 million firm-fixed-price contract (FA4890-19-C-A005) for the Command and Control Technical Support Contract (C2TSC) in support of the 505th Command and Control Wing (CCW), 705th Combat Training Squadron (CTS).

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 Update

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.