CWC Q2 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

 

4/1/2019  Patriot One Technologies Inc. (TSX:PAT) acquired a 50% stake in Sotech Secure, LLC. The terms of the transaction were not disclosed. Sotech Secure manufactures multi-chemical threat detection solutions for military and defense sectors and is based in the United States. Patriot One Technologies engages in the research, development, and commercialization of a system to detect concealed weapons and is based in Vancouver, Canada.

 

4/3/2019  Snap-on Incorporated (NYSE:SNA) acquired Power Hawk Technologies, Inc. for $8.0 million. Power Hawk Technologies designs, manufactures, and sells tools and related equipment and is based in Rockaway, NJ. Snap-on manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions and is based in Kenosha, WI.

 

4/5/2019  Elbit Systems of America, LLC agreed to acquire the Night Vision business of L3Harris Technologies, Inc. for $350.0 million. L3Harris Technologies provides technology-based solutions that solve government and commercial customers' mission-critical challenges and is based in Melbourne, FL. Elbit Systems of America provides high performance products, system solutions, and support services and is based in Fort Worth, TX. Sullivan & Cromwell LLP is serving as legal advisor to L3Harris Technologies. Covington & Burling LLP is serving as legal advisor to Elbit Systems of America.

 

4/9/2019  MRO Holdings, Inc. agreed to acquire North State Aviation Holdings, LLC., dba North State Aviation. The terms of the transaction were not disclosed. North State Aviation owns and operates an aircraft repair station and is based in Winston-Salem, NC. MRO Holdings, a provider of maintenance, repair, and overhaul services to the aircraft maintenance industry,  operates Flightstar in Jacksonville, Florida; Aeroman in El Salvador; and TechOps MX in Queretaro, Mexico, and is based in Irving, TX.

 

4/10/2019  Consolidated Aerospace Manufacturing, LLC acquired Prikos & Becker, LLC. The terms of the transaction were not disclosed. Prikos & Becker manufactures and supplies parts and sub-assemblies for aerospace industry manufacturers and is based in Skokie, IL. Consolidated Aerospace engages in the design and manufacture of fittings, precision aerospace/aircraft components, hardware, and fastening solutions and is based in Fullerton, CA.

 

4/26/2019  Primus Metals, Inc., dba Primus Aero, acquired Paradigm CNC. The terms of the transaction were not disclosed. Paradigm CNC designs and manufactures machine equipment for the aerospace and defense sector and is based in Houston, TX. Primus Aero designs and manufactures machined components and integrated assemblies and is based in Lakewood, CO.

 

5/1/2019  II-VI Incorporated (NasdaqGS:IIVI) acquired Redstone Aerospace Corporation for $30.0 million. Redstone Aerospace manufactures and markets cryogenic systems and high precision pointing subsystems and is based in Longmont, CO. II-VI develops, manufactures, and markets engineered materials, optoelectronic components and devices and is based in Saxonburg, PA.

 

5/2/2019  Whitcraft LLC acquired assets of LAI International's operations in Scarborough and Arizona. The terms of the transaction were not disclosed. LAI International manufactures precision-engineered finished parts, components, and subassemblies and is based in Tempe, AZ. Whitcraft manufactures formed, machined, and fabricated sheet metal aerospace components and assemblies and is based in Eastford, CT.

 

5/10/2019  Jet Linx Aviation LLC acquired the Private Jet Management Business of Elliott Aviation, Inc. The terms of the transaction were not disclosed. Elliott Aviation, an aviation company, engages in aircraft sales and aviation services and solutions and is based in Milan, IL. Jet Linx Aviation provides jet fleet services and is based in Omaha, NE.

 

5/23/2019  Serco Inc. agreed to acquire the Naval Systems Business Unit and certain related contracting entities from Alion Science and Technology Corp. for $230.0 million. Alion Science and Technology provides engineering, information technology, naval architecture, and operational solutions and is based in McLean, VA. Serco provides professional, technology, and management services and is based in Reston, VA. Schulte Roth & Zabel LLP and Covington & Burling LLP are serving as legal advisors to Alion Science and Technology.

 

5/30/2019  Loar Group, Inc. acquired Hydra-Electric Company. The terms of the transaction were not disclosed. Hydra-Electric Company designs, develops, and manufactures pressure, temperature, liquid flow, air speed, and altitude sensing switches and is based in Burbank, CA. Loar Group designs, manufactures, and markets aerospace components and is based in New York, NY.

 

6/4/2019  WP CPP Holdings, LLC, dba Consolidated Precision Products Corp., agreed to acquire the Cast Products business of Allegheny Technologies Incorporated (NYSE:ATI). The terms of the transaction were not disclosed. Allegheny Technologies manufactures and sells specialty materials and components worldwide and is based in Pittsburgh, PA. Consolidated Precision Products manufactures and supplies aerospace components and subassemblies and is based in Cleveland, OH.

 

6/6/2019  Héroux-Devtek Inc. (TSX:HRX) acquired Alta Precision Inc for $17.4 million. Alta Precision engages in manufacturing landing gear and gearboxes/engine components and is based in Montreal, Canada. Héroux-Devtek engages in the design, development, manufacture, integration, testing, and repair and overhaul of aircrafts and is based in Longueuil, Canada.

 

6/7/2019  EMCORE Corporation (NasdaqGM:EMKR) acquired Systron Donner Inertial, Inc. for $25.8 million. Systron Donner Inertial manufactures and supplies micro-electro-mechanical systems inertial sensors and systems and is based in Concord, CA. EMCORE provides advanced mixed-signal optics products and is based in Alhambra, CA. Pillsbury Winthrop Shaw Pittman LLP served as legal advisor to EMCORE.

 

6/9/2019  United Technologies Corporation (NYSE:UTX) agreed to acquire Raytheon Company (NYSE:RTN) in a merger of equals transaction for $86.8 billion. Raytheon develops integrated products, services, and solutions and is based in Waltham, MA. United Technologies provides technology products and services to building systems and aerospace industries and is based in Farmington, CT. Shearman & Sterling LLP is serving as legal advisor to Raytheon. Wachtell, Lipton, Rosen & Katz LLP is serving as legal advisor to United Technologies.

 

6/10/2019  AeroVironment, Inc. (NasdaqGS:AVAV) acquired Pulse Aerospace, Inc. for $25.7 million. Pulse Aerospace develops, manufactures, and supplies unmanned helicopters and associated systems and is based in Lawrence, KS. AeroVironment designs, develops, produces, supports, and operates a portfolio of products and services for government agencies and businesses and is based in Simi Valley, CA.

 

6/10/2019  Hanwha Aerospace Co., Ltd. (KOSE:A012450) agreed to acquire EDAC Technologies Corporation for approximately $300.0 million. EDAC Technologies provides design, manufacturing, and services for tooling, fixtures, molds, jet engine components, and machine spindles and is based in Cheshire, CT. Hanwha Aerospace engages in the development, production, and maintenance of aircraft engines and is based in Changwon, South Korea.

 

6/11/2019  Plug Power Inc. (NasdaqCM:PLUG) acquired EnergyOr Technologies Inc. The terms of the transaction were not disclosed. EnergyOr Technologies develops aerospace products and is based in Quebec, Canada. Plug Power, an alternative energy technology provider, engages in the design, development, manufacture, and commercialization of hydrogen and fuel cell systems and is based Latham, NY.

 

6/11/2019  Jacobs Engineering Group Inc. (NYSE:JEC) agreed to acquire The KeyW Holding Corporation (NasdaqGS:KEYW) for $600.0 million. KeyW provides national security solutions to the intelligence, cyber, and counterterrorism communities and is based in Hanover, MD. Jacobs Engineering provides technical, professional, and construction services and is based in Dallas, TX. Weil, Gotshal & Manges LLP is serving as legal advisor to KeyW. Fried, Frank, Harris, Shriver & Jacobson LLP is serving as legal advisor to Jacobs Engineering.

 

6/13/2019  Compagnie Daher SA agreed to acquire Quest Aircraft Company, LLC. The terms of the transaction were not disclosed. Quest Aircraft Company designs and manufactures aircraft and is based in Sandpoint, ID. Compagnie Daher develops and manufactures integrated industrial systems for aerospace and advanced technologies and is based in Wissous, France.

 

6/14/2019  The Boeing Company (NYSE:BA) agreed to acquire Encore Aerospace LLC. The terms of the transaction were not disclosed. Encore Aerospace manufactures and markets interior cabin and composite products and is based in Seal Beach, CA. Gibson, Dunn & Crutcher LLP is serving as legal advisor for Encore Aerospace.

 

6/17/2019  StandardAero, Inc. acquired the MRO services division from B&E Group, LLC. The terms of the transaction were not disclosed. B&E Group manufactures aerospace and defense components and assemblies and is based in Southwick, MA. StandardAero offers maintenance, repair, and overhaul services and is based in Scottsdale, AZ. Latham & Watkins LLP served as legal advisor to StandardAero.

 

6/17/2019  Sekisui Chemical Co., Ltd. (TSE:4204) agreed to acquire AIM Aerospace, Inc. for $510.0 million. AIM Aerospace designs, manufactures, and supplies composite ducting, sub structural and interiors parts for airlines and original equipment manufacturers and is based in Renton, WA. Sekisui Chemical operates in the housing, urban infrastructure and environmental products (UIEP), and high performance plastics (HPP) segments worldwide and is based in Osaka, Japan.

 

6/17/2019  Peraton Corporation agreed to acquire Solers, Inc. The terms of the transaction were not disclosed. Solers provides information technology solutions for federal and commercial sectors and is based in Arlington, VA. Peraton provides technology-focused services and solutions to various federal government agencies, including space, intelligence, defense, civil, and healthcare and is based in New York, NY. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor for Peraton.

 

6/20/2019  QuEST Global Services Pte. Ltd. acquired Dakota Moon Enterprises LLC. The terms of the transaction were not disclosed. Dakota Moon Enterprises provides supply chain management solutions to the aerospace industry and is based in Henderson, NV. QuEST is an engineering services company based in Singapore.

 

6/25/2019  Mitsubishi Heavy Industries, Ltd. (TSE:7011) agreed to acquire the Canadair Regional Jet Program from Bombardier Inc. (TSX:BBD.B) for $750.0 million. Bombardier together with its subsidiaries, manufactures and sells transportation equipment worldwide and is based in Montreal, Canada. Mitsubishi Heavy Industries manufactures and sells heavy machinery worldwide and is based in Tokyo, Japan. Goodmans LLP served as legal advisor to Mitsubishi Heavy Industries.

 

6/25/2019  AerSale Inc. acquired Qwest Air Parts, Inc. The terms of the transaction were not disclosed. Qwest Air Parts manufactures and distributes commercial aviation parts and is based in Memphis, TN. AerSale supplies aftermarket aircraft, engines, components, and OEM materials and is based in Coral Gables, FL.

 

6/25/2019  Novaria Holdings LLC acquired Acra Aerospace, Inc. The terms of the transaction were not disclosed. Acra Aerospace manufactures machine components and sub-assemblies for the aerospace industry and is based in Anaheim, CA. Novaria manufactures precision components and structural fasteners and is based in North Richland Hills, TX.

 

 

6/27/2019  Spectra Aerospace acquired Lanic Engineering, Inc., dba Lanic Aerospace, and Gardena Specialized Processing. The terms of the transaction were not disclosed. Lanic Aerospace manufactures aircraft components and assemblies and is based in Rancho Cucamonga, CA. Gardena Specialized Processing manufactures aircraft components and assemblies and is based in Gardena, CA. Spectra Aerospace manufactures aerospace parts and is based in Rancho Cucamonga, CA.

 

M&A - Financial

 

4/4/2019  Cache Creek Industries, LLC, Rockmont Capital Partners, Ltd., and Medallion Capital, Inc. acquired Automated Business Power, Inc. The terms of the transaction were not disclosed. Automated Business Power designs, manufactures, and sells communication and power systems for the defense industry and is based in Gaithersburg, MD. Cache Creek Industries is a private equity firm and is based in Los Angeles, CA. Medallion Capital operates as the investment arm of Medallion Financial Corp. and is based in Burnsville, MN. Rockmont Capital Partners is a private equity firm based in Denver, CO. Calfee, Halter & Griswold LLP served as legal advisor to Cache Creek Industries. Holzman Horner PLLC served as legal advisor to Automated Business Power.

 

4/11/2019  Jason Darley, Kevin Kieper, and Frank Graham, along with a private investment firm, acquired LifePort, Inc. The terms of the transaction were not disclosed. LifePort engages in designing, manufacturing, and certifying customized interior solutions for fixed and rotary-wing aircraft in military and commercial sectors and is based in Woodland, WA.

 

4/22/2019  Enlightenment Capital acquired Trowbridge & Trowbridge, LLC. The terms of the transaction were not disclosed. Trowbridge & Trowbridge provides cloud, cyber, and IT modernization solutions to defense, intelligence, and federal civilian markets and is based in McLean, VA. Enlightenment Capital is a private equity firm based in Washington, D.C.

 

4/24/2019  Willcrest Partners, Curran Companies, and other buyers acquired Precision Aerospace, L.L.C. The terms of the transaction were not disclosed. Precision Aerospace manufactures machined sheet metal fabrications of engines for aerospace and industrial applications and is based in Phoenix, AZ. Willcrest Partners is a private equity firm based in San Francisco, CA. Curran Companies is a private equity firm based in Kansas City, MO.

 

5/7/2019  CLM Equity Partners acquired Zircon Precision Products, Inc. The terms of the transaction were not disclosed. Zircon Precision Products manufactures aluminum and stainless steel machined parts and equipment for commercial and military aircrafts and is based in Tempe, AZ. CLM Equity Partners is a private equity firm based in the United States.

 

5/9/2019  AEA Investors LP acquired API Technologies Corp. The terms of the transaction were not disclosed. API Technologies designs, develops, and manufactures systems, subsystems, modules, and components for radio frequency microwave, millimeter wave, electromagnetic, power, and security applications and is based in Orlando, FL. AEA Investors is a private equity firm based in New York, NY.

 

Private Placements

 

4/8/2019  Space Exploration Technologies Corp. announced that it will receive $400.0 million in a round of funding. As of April 17, the company received $44.0 million in its first tranche from 5 investors. Space Exploration Technologies designs, manufactures, and launches advanced rockets and spacecraft and is based in Hawthorne, CA.

 

4/18/2019  Capella Space Corp. announced that it has received $13.7 million in a round of funding from 5 investors. Capella Space offers satellite radar imaging information services from space with its constellation of satellites and is based in Palo Alto, CA.

 

5/8/2019  Overwatch Imaging announced that it has received a multimillion-dollar investment from new investor Tenax Aerospace, LLC. Overwatch Imaging designs and manufactures imaging systems with custom onboard AI software for piloted and unmanned aircraft and is based in Hood River, OR. Tenax Aerospace leases special mission aircraft and is based in Madison, MS.

 

5/13/2019  Hermeus Corporation announced that it has received a round of funding led by new investor Khosla Ventures. Hermeus manufactures aircraft for business class air travel and is based in Atlanta, GA. Khosla Ventures is a private equity and venture capital firm based in Menlo Park, CA.

 

5/27/2019  Coronado Manufacturing Inc. announced that it has received a round of funding from Vopne Capital. Coronado Manufacturing designs and manufactures machine parts for aerospace, electronics, medical, commercial, and industrial sectors and is based in Sun Valley, CA. Vopne Capital is a private equity firm based in Sun Valley, CA.

 

6/4/2019  Robotic Skies, LLC announced that it has received a round of funding from Boeing HorizonX and other investors. Robotic Skies provides certification, maintenance, and repair services for the emerging commercial drone aircraft fleet and is based in Albuquerque, NM. Boeing HorizonX is the venture capital arm of The Boeing Company and is based in Chicago, IL.

 

6/4/2019  MICT, Inc. (NasdaqCM:MICT) announced that it has entered into a preferred securities purchase agreement with a group of strategic investors to issue Series A preferred shares for gross proceeds of $7.0 million. The company also entered into a note purchase agreement with existing investor, BNN Technology PLC. MICT designs, develops, manufactures, and sells rugged mobile computing devices comprising tablets and on-board computers that provide fleet operators and field workforces with computing solutions and is based in Montvale, NJ.

 

6/13/2019  Fortem Technologies, Inc. announced that it has received $14.5 million in a round of funding. Fortem Technologies develops and manufactures radar for small manned aircrafts, as well as the data necessary for safe beyond line of sight unmanned aerial vehicles operations and is based in Provo, UT.

 

6/14/2019  WP CPP Holdings, LLC, dba Consolidated Precision Products Corp., announced that it has entered into a recapitalization agreement which included participation from new investor, Berkshire Partners LLC, and returning investor, Warburg Pincus LLC. Consolidated Precision Products manufactures and supplies aerospace components and subassemblies and is based in Cleveland, OH. Berkshire Partners is a private equity firm based in Boston, MA. Warburg Pincus is a private equity and venture capital firm based in New York, NY. Cleary Gottlieb Steen & Hamilton LLP served as legal advisor to Consolidated Precision Products and Warburg Pincus. Weil, Gotshal & Manges LLP served as legal advisor to Berkshire Partners.

 

6/18/2019  Ursa Major Technologies, Inc. announced that it will receive $25.3 million in funding. As of July 1, the company received $15.5 million in its first tranche from 12 investors. Ursa Major Technologies manufactures propulsion solutions for microsatellite and nanosatellite launch markets and is based in Berthoud, CO.

 

6/20/2019  Provengo, LLC announced that it has received an equity round of funding from new investor Decathlon Capital Partners. Provengo provides procurement support, logistics coordination, and other supply chain functions to soldier, command, and prime contractors and is based in North Merrick, NY. Decathlon Capital Partners is a private equity firm based in Park City, UT.

 

6/24/2019  Space Exploration Technologies Corp. announced that it will receive $314.0 million in a round of funding. As of July 9, the company received $214.0 million in its first tranche from one investor. Space Exploration Technologies designs, manufactures, and launches advanced rockets and spacecraft and is based in Hawthorne, CA.

 

7/12/2019ACC HOLDCO, LLC, dba Air Comm Corporation, announced that it has received $32.0 million in funding from 6 investors. Air Comm develops and manufactures environmental control solutions for the aerospace and defense industry globally and is based in Boulder, CO.

John Farr