CWC Q1 2019 Aerospace & Defense M&A and Financing Report

This report is prepared as a courtesy to the Aerospace & Defense business community by Columbia West Capital based on our research and information collected by our firm. Despite our dedicated efforts, occasionally a deal might be missed or appropriate credit not given to legal or financial advisors. Please feel free to contact us if you have information on a transaction that you want to ensure is included and credit attributed to appropriate advisors.

 

M&A – Strategic

 

1/2/2019  Bradford Space Group acquired Deep Space Industries Inc. The terms of the transaction were not disclosed. Deep Space Industries, which has rebranded as Bradford Space Inc., operates as an asteroid mining and space technology company and is based in Moffett Field, CA. Bradford Space Group develops and manufactures satellite control sub-systems and components and is based in Heerle, the Netherlands.

 

1/3/2019  Technical Services Corporation acquired Accelerated Development & Support Corporation. The terms of the transaction were not disclosed. Accelerated Development and Support supports government and prime system integrators with science and technology, engineering, acquisition, and program management requirements and is based in Arlington, VA. Technical Services Corporation provides engineering, information technology, program and project management, data management, and compliance services to the federal defense industry and is based in Arlington, VA. Pursuant to the transaction, the combined entity will be known as ADS Federal. McMahon, Welch and Learned, PLLC served as legal advisor to Technical Services Corporation.

 

1/7/2019  Kellstrom Defense Aerospace, Inc. acquired Williams Aerospace & Manufacturing, Inc. The terms of the transaction were not disclosed. Williams Aerospace manufactures military aircraft spare parts and ground support equipment and is based in Spring Valley, CA. Kellstrom Defense Aerospace distributes aircraft parts for operators, depots, and aircraft maintenance, repair, and overhaul centers and is based in Miramar, FL. Willkie Farr & Gallagher LLP served as legal advisor to Kellstrom Defense Aerospace.

 

1/7/2019  Parsons Corporation acquired OGSystems, LLC for $300.3 million. OGSystems provides geospatial and security solutions for the Department of Defense and intelligence community and is based in Chantilly, VA. Parsons provides technology-based solutions in the defense, intelligence, and critical infrastructure markets and is based in Centreville, VA. Ropes & Gray LLP and Miles & Stockbridge P.C. served as legal advisors to OGSystems. Latham & Watkins LLP served as legal advisor to Parsons.

 

1/8/2019  Applus Services, S.A. (BME:APPS) acquired Talon Test Labs, Inc. The terms of the transaction were not disclosed. Talon Test Labs offers aerospace non-destructive inspection and testing services and is based in Camarillo, CA. Applus Services provides testing, inspection, and certification services and is based in Madrid, Spain.

 

1/9/2019  Gama Aviation Plc (AIM:GMAA) acquired the Paint and Interior Completion Business of Lotus Aviation Group. The Paint and Interior Completion Business of Lotus Aviation Group comprises a business division that offers paint and interior maintenance services to the aerospace industry and is based in Ft. Lauderdale, FL. Gama Aviation provides business aviation services and is based in Farnborough, United Kingdom.

 

1/9/2019  Advanced Core Concepts, LLC agreed to acquire CyberSpace Operations Consulting. The terms of the transaction were not disclosed. CyberSpace Operations Consulting provides technical solutions and operational consulting in the field of cyber, space, intelligence, and command and control to government and commercial customers and is based in Colorado Springs, CO. Advanced Core Concepts provides engineering and technical support, logistics, sustainment, acquisition support, foreign military sales support, and information technology solutions and is based in Warner Robins, GA.

 

1/10/2019  Securitas Transport Aviation Services USA acquired Global Elite Group for $22.0 million. Global Elite Group provides security, aviation, and business services to the aviation industry and is based in Garden City, NY. Securitas Transport Aviation provides passenger and baggage screening for the Transportation Security Administration and is based in Parsippany, NJ.

 

1/10/2019  VSE Aviation Inc. acquired 1st Choice Aerospace Inc. for $152.0 million. 1st Choice Aerospace provides component maintenance, repair, and overhaul services for new generation and legacy commercial aircraft families and is based in Miramar, FL. VSE Aviation provides maintenance, repair, and overhaul services in the aviation industry and is based in Carrollton, TX. Gunster, Yoakley & Stewart, P.A. served as legal advisor to 1st Choice Aerospace. Arent Fox LLP served as legal advisor to VSE Aviation.

 

1/10/2019  Essex Industries, Inc. acquired Momeni Engineering LLC. The terms of the transaction were not disclosed. Momeni Engineering manufactures precision machined original equipment manufacturer (OEM) parts and is based in Huntington Beach, CA. Essex Industries designs, develops, manufactures, and markets life support equipment, ground support equipment, platform controls, and aircraft components and is based in St. Louis, MO.

 

1/22/2019  VT Group, Inc. acquired National Technologies Associates, Inc. The terms of the transaction were not disclosed. National Technologies Associates specializes in program management, engineering, and logistics services for military aviation platforms and systems and is based in Arlington, VA. VT Group designs, delivers, and maintains technology and business solutions worldwide and is based in Virginia Beach, VA. Mayer Brown LLP served as legal advisor to VT Group.

 

1/25/2019  ECS Federal, LLC acquired DHA Group, Inc. for $46.0 million. DHA provides mobility, cybersecurity, cloud and IT services to the FBI and other federal customers and is based in Washington, D.C. ECS provides information technology services to military, federal civilian, and commercial clients and is based in Fairfax, VA.

 

1/28/2019  CACI International Inc. (NYSE:CACI) acquired Mastodon Design LLC for $225.0 million. Mastodon designs and manufactures rugged signals intelligence, electronic warfare, and cyber operations products and is based in Rochester, NY. CACI provides information solutions and services and is based in Arlington, VA. Alston & Bird LLP served as legal advisor to Mastodon.

 

1/29/2019  Mercury Systems, Inc. (NasdaqGS:MRCY) acquired GECO Avionics, LLC for $36.5 million. GECO designs and manufactures hardware and software avionics solutions and is based in Mesa, AZ. Mercury Systems provides sensor and safety critical mission processing subsystems and is based in Andover, MA.

 

2/1/2019  Whelen Engineering Company, Inc. acquired LoPresti Aviation. The terms of the transaction were not disclosed. LoPresti manufactures drag reducing replacement parts and lighting equipment for aircrafts and is based in Sebastian, FL. Whelen Engineering manufactures lifesaving products and emergency warning equipment and is based in Chester, CT.

 

2/5/2019  Hypergiant, LLC acquired Satellite & Extraterrestrial Operations & Procedures (SEOPS). The terms of the transaction were not disclosed. SEOPS provides satellite transportation, integration, and deployment solutions and is based in Houston, TX. Hypergiant provides artificial intelligence and machine learning solutions and is based in Austin, TX.

 

2/5/2019  Logistics Management Institute, Inc. acquired The Tauri Group LLC. The terms of the transaction were not disclosed. The Tauri Group provides homeland security, technology, aerospace, arms control, public health, and government contracting services and is based in Alexandria, VA. Logistics Management Institute operates as a not-for-profit government consulting company and is based in Tysons, VA.

 

2/6/2019  Domaille Engineering, LLC acquired Stanley Engineering Company, Inc. The terms of the transaction were not disclosed. Stanley Engineering manufactures and supplies multi-axis components and sub-assemblies and is based in Glen Burnie, MD. Domaille Engineering provides precision optical fiber polishing machines and fixtures to high-tech industries and is based in Rochester, MN.

 

2/6/2019  Learjet Inc. acquired the Global 7500 Wing Manufacturing Operations and Assets of Triumph Aerostructures, LLC. The terms of the transaction were not disclosed. Triumph Aerostructures engages in the manufacture and supply of aerostructures for commercial, military, and business jet aircraft worldwide and is based in Dallas, TX. Learjet manufactures business jets and is based in Wichita, KS. Skadden, Arps, Slate, Meagher & Flom, L.L.P. served as legal advisor to Triumph Aerostructures. Jones Day served as legal advisor to Learjet.

 

2/15/2019  ICTC Global Manufacturing Solutions acquired the Aerospace and Defense Precision Machining Capabilities and Assets of Chasco Machine & Manufacturing Inc. The terms of the transaction were not disclosed. Chasco manufactures precision parts and equipment and is based in Brooksville, FL. ICTC manufactures custom wire harnesses, cable assemblies, printed circuit board assemblies, and electronic box builds and is based in Brooksville, FL.

 

2/25/2019  Host Compliance, LLC acquired Bear Cloud Software LLC, dba STR Helper. The terms of the transaction were not disclosed. STR Helper develops software solutions for short-term rental licensing and compliance to local governments and is based in Austin, TX. Host Compliance provides a platform to handle community short-term rental registrations, tax collections, and enforcement needs and is based in San Francisco, CA.

 

2/27/2019  Kratos Defense & Security Solutions, Inc. (NasdaqGS:KTOS) acquired an 80.1% stake in Florida Turbine Technologies Inc. and FTT Core LLC for $64.4 million. Florida Turbine Technologies and FTT Core specialize in the development of turbomachinery systems and components for aircraft engines, space propulsion, and power and are based in Jupiter, FL. Kratos Defense & Security Solutions provides mission critical products, solutions, and services and is based in San Diego, CA. Paul Hastings LLP served as legal advisor to Kratos.

 

2/28/2019  Flight Support Group, Inc. acquired 80.1% of Decavo, LLC. The terms of the transaction were not disclosed. Decavo designs and manufactures composite parts, assemblies, and unmanned aerial vehicle airframes and is based in Hood River, OR. Flight Support Group provides aviation services worldwide and is based in Sanford, FL.

 

3/4/2019  Arthur J. Gallagher & Co. (NYSE:AJG) agreed to acquire the Global Aerospace Operations of Jardine Lloyd Thompson Group plc (LSE:JLT) for $250.4 million. The Global Aerospace Operations comprise the aerospace retail and wholesale insurance broking division of London-based Jardine Lloyd Thompson Group, a provider of insurance, reinsurance, employee benefits-related advice, brokerage, and associated services worldwide. Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage, consulting, and third-party claims settlement and administration services and is based in Rolling Meadows, IL.

 

3/6/2019  STS Aviation Group, Inc. acquired Triumph Aviation Services - NAAS Division Inc. from Triumph Group, Inc. (NYSE:TGI). The terms of the transaction were not disclosed. Triumph Aviation Services - NAAS Division provides aircraft repair services worldwide and is based in San Antonio, TX. STS Aviation Group provides workforce management, aircraft engineering, line maintenance, aircraft parts, hose manufacturing, aircraft repair, and aircraft modification services and is based in Jensen Beach, FL. Kirkland & Ellis LLP served as legal advisor to STS Aviation Group.

 

3/8/2019  TECT Power, Inc. and TECT Aerospace, Inc. acquired the Metallics Machining Business of Triumph Group, Inc. (NYSE:TGI). The terms of the transaction were not disclosed. The Metallics Machining Business of Triumph Group comprises an aerospace components manufacturing business and is located in the United States. TECT Aerospace manufactures and supplies aerostructure components, parts, and assemblies for commercial, business, general, and military aviation and is based in Wichita, KS. TECT Power manufactures and supplies turbine engine components and assemblies for aviation, industrial, military, and marine applications and is based in Fort Mitchell, KY.

 

3/15/2019  Gryphon Technologies LC acquired Schafer Intermediate Holdings, LLC from Belcan, LLC. The terms of the transaction were not disclosed. Schafer provides scientific and technical advisory services for national security and is based in Arlington, VA. Gryphon Technologies operates as an engineering and technical services company that provides support to the U.S. security and coalition forces and is based in Washington, D.C. Belcan provides engineering consultancy and technical recruiting services to organizations and is based in Cincinnati, OH. Kirkland & Ellis LLP served as legal advisor to Gryphon Technologies.

 

3/22/2019  CieloGov, LLC acquired Alytica LLC. The terms of the transaction were not disclosed. Alytica operates as an aerospace and defense consulting company and is based in Washington, D.C. CieloGov provides consulting and advisory services to the government and is based in Lubbock, TX.

 

3/29/2019  Aernnova Aerospace S.A. acquired Structural Integrity Engineering, Inc. The terms of the transaction were not disclosed. Structural Integrity Engineering is an engineering project development and consulting company and is based in Chatsworth, CA. Aernnova Aerospace designs, manufactures, and markets aerostructures and components and is based in Vitoria-Gasteiz, Spain.

 

M&A – Financial

 

1/22/2019  AFI Partners LLC acquired Garsite Progress LLC. The terms of the transaction were not disclosed. Garsite Progress manufactures aircraft refueling products and hydrant dispensers and is based in Kansas City, KS. AFI Partners is a private equity firm based in New York, NY. Kirkland & Ellis LLP served as legal advisor to AFI Partners.

 

2/15/2019  Cornerstone Capital Holdings, LLC acquired N2 Imaging Systems, LLC. The terms of the transaction were not disclosed. N2 Imaging Systems designs and manufactures compact, low power, visible, and infrared imaging systems and is based in Irvine, CA. Cornerstone Capital is a private equity firm based in Santa Monica, CA.

 

3/4/2019  Liberty Hall Capital Partners, L.P. acquired an unknown majority stake in Onboard Systems International Inc. The terms of the transaction were not disclosed. Onboard Systems designs and manufactures helicopter cargo hook equipment and is based in Vancouver, WA. Liberty Hall Capital is a private equity firm based in New York, NY. Perkins Coie LLP served as legal advisor to Onboard Systems. Gibson, Dunn & Crutcher LLP served as legal advisor to Liberty Hall Capital.

 

3/11/2019  Greenbriar Equity Group LLC and First Aviation Services Inc. agreed to acquire Dart Aerospace Limited. The terms of the transaction were not disclosed. Dart Aerospace designs, manufactures, and markets certified solutions for the helicopter and aerospace industry worldwide and is based in Hawkesbury, Canada. First Aviation Services provides repair and overhaul, rotables management, and related engineering services to the aviation industry and is based in Westport, CT. Greenbriar Equity is a private equity firm based in Rye, NY. Stikeman Elliott served as legal advisor to Greenbriar Equity.

 

3/26/2019  Resilience Capital Partners LLC acquired Systron Donner Inertial. The terms of the transaction were not disclosed. Systron Donner engages in the development of quartz MEMS inertial sensing products and systems providing precision systems solutions and is based in Concord, CA. Resilience Capital is a private equity firm based in Cleveland, OH.

 

3/31/2019  Arlington Capital Partners LP acquired the Fabrications Business of Triumph Group, Inc. (NYSE:TGI). The terms of the transaction were not disclosed. The fabrications business is now known as Radius Aerospace, Inc. Radius provides fabrications, metal bonding and other forming capabilities as well as vertically integrated products to original equipment manufacturers and tier 1 aerospace and defense clients and is based in Hot Springs, AR. Arlington Capital is a private equity firm based in Chevy Chase, MD. Gibson, Dunn & Crutcher LLP served as legal advisor to Arlington Capital.

 

Private Placements

 

1/3/2019  Synapse Technology Corporation announced that it has received $6.0 million in its seed round of funding from Founders Fund, Eight Partners, Village Global and other investors. Synapse Technology develops learning and computer vision technology for the defense image intelligence industry and is based in Palo Alto, CA. Founders Fund, Eight Partners, and Village Global are venture capital firms based in San Francisco, CA.

 

1/7/2019  STS Aviation Group, Inc. announced that it has received an equity round of funding from new investor Greenbriar Equity Group LLC. STS Aviation Group provides workforce management, aircraft engineering, line maintenance, aircraft parts, hose manufacturing, aircraft repair, and aircraft modification services and is based in Jensen Beach, FL. Greenbriar Equity is a private equity firm based in Rye, NY. Alston & Bird LLP served as legal advisor to STS Aviation Group. Kirkland & Ellis LLP served as legal advisor to Greenbriar Equity.

 

1/9/2019  AeroTurbine, Inc. announced that it has received a round of funding from Gallant Capital Partners, LLC. AeroTurbine provides aviation engine and management solutions and is based in Miramar, FL. Gallant Capital Partners is a private equity firm based in Los Angeles, CA.

 

1/16/2019  Craig Technical Consulting, Inc., dba Craig Technologies, announced that it has received a round of funding from new investor Decathlon Capital Partners. Craig Technologies provides custom engineering and technical support services to the aerospace and defense industry and is based in Cape Canaveral, FL. Decathlon Capital is a private equity firm based in Park City, UT.

 

1/22/2019  System High Corporation announced that it has received a round of funding from new investor Enlightenment Capital. System High provides protection solutions for information and assets vital to national security and is based in Chantilly, VA. Enlightenment Capital is a private equity firm based in Chevy Chase, MD.

 

1/24/2019  Swarm Technologies, Inc. announced that it has received $25.0 million in its Series A round of funding from Craft Ventures and other investors. Swarm Technologies is a satellite company that provides accessible global connectivity and is based in Los Altos, CA. Craft Ventures is a venture capital firm based in San Francisco, CA.

 

2/13/2019  Elroy Air, Inc. announced that it has received $9.2 million in its seed round of funding from 122 West Ventures, Catapult Ventures Group and other investors. Elroy Air manufactures autonomous aircraft systems to deliver goods and is based in San Francisco, CA. 122 West Ventures is a venture capital firm based in San Francisco, CA. Catapult Ventures is a private equity and venture capital firm based in Leicester, United Kingdom.

 

2/15/2019  Kiwi Technologies Inc. announced that it has received $6.0 million in funding from seven investors. Kiwi Technologies designs and manufactures global positioning system enabled unmanned aerial vehicles and on-ground support pods for aerial application services and is based in Everett, MA.

 

2/21/2019  NOVI, LLC announced that it has received a round of funding from new investor CIT GAP Funds. NOVI develops hardware and data analytics platforms for the space industry and is based in Arlington, VA. CIT GAP Funds is a venture capital firm based in Herndon, VA.

 

3/4/2019  The NORDAM Group, Inc. announced that it will receive a round of funding from new investor Carlyle Strategic Partners IV, L.P. The NORDAM Group provides composite solutions for aircraft manufacturers, engine manufacturers, and airlines and is based in Tulsa, OK. The Carlyle Group is an investment firm based in Washington, D.C.

 

3/13/2019  CesiumAstro Inc. announced that it has received $12.4 million in its Series A round of funding from Airbus Group Ventures and other investors. CesiumAstro delivers out-of-the-box communication systems for satellites, UAVs, launch vehicles, and other space or airborne platforms and is based in Austin, TX. Airbus Group Ventures is the venture capital arm of Airbus Group N.V.

 

3/19/2019  ICON Aircraft, Inc. announced that it will receive $200.0 million in funding. As of April 3, 2019, the company received $20.0 million in its first tranche from one investor. ICON designs, develops, manufactures, and markets light consumer sport aircraft and is based in Vacaville, CA.

 

3/25/2019  Ouster, Inc. announced that it has received $60.0 million in debt and equity funding from Runway Growth Capital, LLC and other investors. Ouster develops sensors and software products for robotics and computer vision applications and is based in San Francisco, CA. Runway Growth Capital provides capital lending services and is based in Woodside, CA.

John Farr