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30 Aug 18. HEICO Corporation Subsidiary Acquires Aftermarket Avionics Display Specialist. HEICO Corporation (NYSE:HEI.A) (NYSE:HEI) today announced that a subsidiary of its Flight Support Group has acquired 100% of the business and assets of Optical Display Engineering (“ODE”) in an all cash transaction. HEICO stated that it expects the acquisition to be accretive to its earnings in the year following the purchase. Further financial terms and details were not disclosed. ODE is an FAA-authorized Part 145 Repair Station focusing on the repair of LCD screens and display modules for aviation displays used in civilian and military aircraft. ODE also holds FAA-PMA authority to supply products that it repairs. ODE is currently located in Irvine, California, and will be relocated to Highland Heights, Ohio where HEICO Flight Support Group’s Inertial Aerospace Services FAA/EASA repair station (“IAS”) and Flight Specialties PMA units are located.
Laurans A. Mendelson, HEICO’s Chairman & Chief Executive Officer, and Eric A. Mendelson, HEICO’s Co-President and CEO of its Flight Support Group, jointly noted, “Two years ago, we began the successful integration of select inertial reference capabilities into IAS as a licensee of Northrop Grumman, and we are very excited to broaden HEICO’s avionics and aviation electronics expertise. ODE continues our strategy of expanding our repair and PMA capabilities serving airlines, OEMs and independent repair stations with innovative solutions. Our disciplined growth strategy remains the same and we will continue to look for value-added, accretive acquisitions.”
Located in Highland Heights, Ohio, Inertial Aerospace Services focuses on the repair of Inertial Guidance, including innovative solutions for avionics systems. Flight Specialties is co-located with IAS and develops PMAs for a variety of aircraft applications including displays, keypads and mechanical components. (Source: BUSINESS WIRE)
31 Aug 18. Aussie success story Austal enjoys profit spike. Henderson-based Austal has released its FY2018 results, sighting a 154 per cent increase to its net profit after tax, driven by an exceptional performance across its US Navy shipbuilding programs and growth in the commercial ferry market, highlighting the growing success of the company. Austal’s marked growth has been driven across each of the company’s individual sectors and wholly-owned subsidiaries. These results were matched by an excellent conversion of profit to cash, with positive operating cash flow of $65.6m and total revenue of $1.39bn, up 6 per cent from the FY2017 result of $1.31bn.
Austal CEO, David Singleton said, “In its 30th year, Austal has delivered near-record profit, strong operating cash flow, and as a result is able to increase dividends to shareholders. Underpinning this result is the success story of Austal’s service and sustainment business, which continued to grow during the year as more and more Austal-built military vessels entered service in both the USA and Australia.”
Austal saw earnings and cash flow driven by strong performance on US Navy shipbuilding programs, achieving a 8.5 per cent shipbuilding margin, up from 6.8 per cent in FY2017, while the company ended FY2018 in a net cash position of $33.9m (FY2017: $19.3m net cash). Austal USA reported $1.16bn in revenue, and 9.1 per cent EBIT growth over FY2017 as the company’s shipyard in Mobile, Alabama, achieved further efficiencies in the construction of two US Navy programs, the Littoral Combat Ship (LCS) and Expeditionary Fast Transport (EPF). US shipbuilding margin grew to 8.5 per cent, exceeding the FY2018 guidance range of 6-8 per cent. Additionally, Austal secured more than $420m in commercial ferry contracts during FY2018, underpinning a major capacity expansion currently underway at the company’s shipbuilding facilities in Asia and WA. Austal also secured new defence vessel orders, which has led to an end of year order book of $3.0bn.
“Austal USA delivered standout performance in the 2018 financial year, with even greater efficiencies achieved on our two major shipbuilding programs for the US Navy,” Singleton said.
Austal USA: As Austal’s largest business unit, the US defence shipyard sustained the earnings turnaround that started in FY2017, reporting revenue of $1.16bn (FY2017: $1.17bn) and a segment EBIT of $83.0m (FY2017: $76.1m). The key shipbuilding margin rose from 6.8 per cent in FY2017 to 8.5 per cent in FY2018, comfortably exceeding the FY2018 guidance range of 6-8 per cent. This result reflects a continuing improvement in shipbuilding performance, particularly around the LCS program. Austal USA now has 10 ships on order across the two major defence vessel contracts for the US Navy, the US$5.9bn LCS program and the US$2.0bn EPF program. This includes a contract received in FY2018 to build LCS 30, the 15th LCS to be constructed by the company, awarded under a competitive tender process.
Austal Australia: Austal’s Australia segment reported revenue of $198.5m (FY2017: $113.7m), with an EBIT loss of $6.7m (FY2017: $2.1m EBIT loss). Throughput at Austal’s Henderson shipyard increased significantly during the year, delivering revenue growth as Austal completed construction and design work on the Guardian Class Patrol Boat (GCPB) program for Pacific island nations, and large commercial ferries, as well as sustainment work on the Cape Class Patrol Boat (CCPB) support contract and Armidale Class remediation contract. The earnings result reflected zero profit recognition for GCPB 1 until it is delivered in FY2019, no contribution from the CCPB sustainment contract (which was declared to be onerous in FY2017) and the low margin of the Mols ferry, which was originally intended to be built in the Philippines but for operational reasons was transferred to Australia. Additionally, this result was also impacted by writing off the substantial costs associated with bidding and preparing for the Australian Offshore Patrol Vessel (OPV) tender. Earnings are expected to improve in Australia as construction programs on contracted vessels mature. Henderson has made significant inroads in efficiency over the past two years, particularly with the Mols ferry, and this is extending across other programs. This, combined with throughput increases from existing vessel contracts, is expected to bring the facility back into profitability.
Austal Asia (Philippines, Vietnam and China): Austal’s Asia segment reported revenue of $57.9m (FY2017: $33.8m), with a segment EBIT loss of $1.6m (FY2017: $0.1m EBIT loss). A large component ($1.2m) of the segment loss reflected the expensing of mobilisation costs for the new shipyard operations in Vietnam. This new facility will provide additional capacity for Austal’s commercial shipbuilding program and will be available for operations within the next three months. The new facility is being built to Austal’s specification, but will be leased from a third party, providing flexibility to match future capacity needs.
Austal Philippines increased revenue to a record level during FY2018 as it began to ramp up to a significantly higher operating tempo. Revenue is expected to double in FY2019 as large commercial ferry projects enter construction. Austal is currently building a number of new facilities including a vessel construction hall, which will be the largest in the group outside of the US.
These new facilities will treble the maximum throughput capacity of the shipyard and enable the construction of Austal’s largest commercial vessels. The Philippines was, however, affected by disruption costs associated with the facility expansion, which impacted earnings.
The new facilities are due for completion in mid FY2019. Austal’s joint venture company in China, Aulong, established itself by completing its first vessel delivery, to an Austal design, in FY2018 and adding a further five vessels to its order book. Austal is an Australian shipbuilder and global defence prime contractor that designs constructs and sustains some of the world’s most advanced commercial and defence vessels. Austal has designed, constructed and delivered more than 300 commercial and defence vessels for more than 100 operators in 54 countries worldwide. (Source: Defence Connect)
29 Aug 18. German Finance Minister Urges European Defence Mergers. German Finance Minister Olaf Scholz called on Wednesday for mergers within the European defence industry to get a better bang for the buck on procurement spending. Scholz told a business conference outside Paris that governments were concentrating too much procurement spending on local companies and said weapons systems were too fragmented across Europe.
“We must support mergers not only under the leadership of our own national champions, so we will achieve a better integrated defence policy that would provide internal security and turn the EU into a serious player within the global military architecture,” Scholz said in a speech.
Despite long-standing calls for mergers, European governments and defence contractors have made little progress consolidating the industry.
French Finance Minister Bruno Le Maire, who was at the conference with Scholz, said this month that plans to combine the civilian shipyards of French state-owned shipbuilder Naval Group and Italian group Fincantieri should not include defence assets.
The multinational Airbus A400M military transport plane has also set an uninspiring example for cross-border defence cooperation as the programme has been plagued by cost overruns and delays. Meanwhile, France and Germany are pushing ahead with plans to develop a next generation combat aircraft to replace France’s Dassault Aviation Rafales and Germany’s Eurofighters, made by a European consortium. The two countries also have plans to jointly develop a new battle tank due to be operational in 2035. (Source: glstrade.com/New York Times.com)
29 Aug 18. MAG Aerospace acquires naval aircraft development specialist. US intelligence, surveillance, and reconnaissance (ISR) and training services provider MAG Aerospace has announced that it has acquired Ausley Associates, which provides defence development advisory services relating to aircraft systems and weapons procurement programmes. The transaction, which adds around 200 staff to MAG Aerospace’s operations, was completed on 24 August. MAG Aerospace CEO Joe Fluet said, “Ausley is a towering name in the NAVAIR industry which has earned itself respect through 20-plus years of rigorous work and proven methodology. Ausley’s addition gives MAG the capability to further its services to the [US Navy] and associated aviation customers.” (Source: Google/IHS Jane’s)
29 Aug 18. Quickstep reports sales up 14% highlighting growth for leading manufacturer. Quickstep Holdings, a leading Australian independent manufacturer of advanced carbon fibre composite components, has announced total sales increases for FY2018, with an eye on future growth. Quickstep has seen 13.7 per cent ($59m) growth for the company’s sales growth on the 2017 fiscal year, up from $51.9m. This growth has been driven by a number of the company’s key projects, including:
- F-35 Joint Strike Fighters;
- C-130J Super Hercules; and
- Boeing Defense Micro X portable, ultra-lightweight mobile X-Ray.
Mark Burgess, CEO and managing director of Quickstep, said, “We have a clear vision focused on aerospace sector growth and have strengthened our management team, increasing leadership skills and accountability across the business. The benefits of our value systems and lean programs are beginning to flow through, with targeted R&D contributing to commercial projects, and contract wins that align the company for future growth. Production for the Joint Strike Fighter (JSF) program increased 45 per cent in FY18 and is expected to continue to increase in FY19.”
Aerospace production ramps up: Revenue from the group’s JSF contracts for FY18 was $38.6m, up 45 per cent from $26.7m in FY17. JSF revenues are expected to increase in FY19, in line with the growing F-35 production schedule which has delivered 310 JSF aircraft to date. C-130J wing flaps production continued at the long-term rate of two ship-sets per month and after year end Quickstep secured a contract extension for production of these parts for a further five-year period from 2020 to 2024. During the year, the company commenced development to manufacture parts for Boeing Defense and also produced components for Micro X’s portable, ultra-lightweight mobile X-ray. Targeted new business activity: During the FY18 year, Quickstep secured two new export programs with Boeing Defense and became an approved supplier for Boeing, opening opportunities across the Boeing Company, and for Airbus in Australia and the south Pacific. Quickstep is also a member of the General Atomics-led Team Reaper Australia partnership, which is tendering for Australian remotely piloted aircraft systems business.
After year end, Quickstep announced that it had secured a new project to produce carbon fibre composite housings for an F-35 counter-measure flare for Chemring Australia, further expanding Quickstep’s activity. This project is supported by project funding from the F-35 Lightning II Joint Program Office through Chemring Australia and a New Air Combat Capability – Industry Support Program grant of $1m, alongside investment by Quickstep. Additionally, Quickstep also announced that it has signed a memorandum of understanding (MoU) with Lockheed Martin for a Long Term Flexible Contract (LTFC) associated with the ongoing supply of C-130J/LM-100J wing flaps for an additional five-years, covering the period 2020 to 2024. Quickstep has an existing contract with Lockheed Martin to provide wing flaps for the C-130J/LM-100J aircraft through to end-2019. The company has also signed a letter of intent to work jointly on future projects with Triumph Aerospace Structures. Quickstep has completed a successful manufacturing trial using its patented Qure technology to produce demonstration automotive front fenders for a European car manufacturer and entered into a sales and manufacturing agreement with the ATR Group, a leading Italian supplier of advanced manufacturing composite components for the aerospace and automotive sectors.
Outlook: Quickstep anticipates that the business will continue to improve in FY19 as JSF deliveries ramp up towards peak production volumes over the next two years. The group’s revenue is expected to grow by at least 20 per cent in FY19 and gross margins will continue to improve as the group benefits from economies of scale and increasing efficiencies. As a consequence, the group expects to deliver positive EBIT for FY19 as well as positive operating cash flow. Quickstep will further accelerate its business development activities to win additional business, through its tiered growth strategy:
- Core defence aerospace: Increasing revenue and diversifying the company’s customer base within the defence/aerospace sector utilising existing Bankstown facilities, while expanding core capabilities;
- Aerospace Qure/advanced manufacturing deployment: Strategic growth within the aerospace and other sectors, using Qure and innovative technology solutions to attract new business opportunities; and
- Step-change growth: Step-change to commercial aerospace supply. Securing large global programs and/or inorganic growth across the wider defence, commercial aerospace and automotive industries.
Over the next three years, Quickstep expects to benefit from increasing JSF production and higher margins as economies of scale improve. An enhanced business development function and healthy project pipeline has the company well positioned for future profitable growth. The group continues to be focused on high value, expanding global markets while strengthening its position as a leading independent carbon fibre composites manufacturer. (Source: Defence Connect)
28 Aug 18. Spanish cabinet clears foreign takeover of two companies. The Spanish government has approved the takeover of two national companies involved in the defence sector. The cabinet’s decision on 24 August opens the way for Canadian group Heroux-Devtek Inc to acquire 100% of aircraft and helicopter parts maker Compañía Española de Sistemas Aeronáuticos (CESA). CESA was created in 1989 as a government-backed specialist spin-off from the then state-owned aircraft manufacturer CASA as a prelude to the country getting involved in the Eurofighter programme. Like its original parent company, CESA became part of the Airbus group, with what is now Airbus Defence & Space buying up the remaining 40% of shares held by UTC (United Technologies) Aerospace Systems in May this year. (Source: IHS Jane’s)
27 Aug 18. FLIR Systems, Inc.(NASDAQ: FLIR) and CVEDIA PTE. Ltd., Inc. announced today that FLIR has made a strategic investment in CVEDIA, developers of machine learning applications that are used to efficiently enable sensor systems with artificial intelligence. CVEDIA’s SynCity simulator software tool provides ultra-realistic, multi-modal, digital environments for autonomous system OEMs and related sensor makers to train their systems in a much faster, safer, and more affordable manner than by utilizing traditional data collection techniques. CVEDIA has developed SynCity to feature real-world physics; simulate a multitude of lighting and environmental conditions; and render objects such as people, animals, and automobiles in a manner that artificial intelligence systems interpret them as real and lifelike. This produces high-quality datasets that are fed into customer neural network frameworks, materially shortening the time and easing the process of training these deep learning systems. The strategic investment by FLIR in CVEDIA will create opportunities for the companies to accelerate the development of thermal spectrum-based deep learning training tools for use by FLIR and selected partners in integrating artificial intelligence into FLIRsensors and systems. FLIR’s advanced thermal imaging sensors are an ideal technology for detecting living beings, seeing at night and through adverse environmental conditions, and in identifying industrial process abnormalities, making them a key capability in automotive, military, and industrial applications. The investment will also provide CVEDIA with growth capital to enable the expansion of their business.
“This investment in CVEDIA will enhance our ability to innovate sensing solutions that enable our customers to more quickly and accurately make their mission-critical decisions,” said James Cannon, President and CEO of FLIR. “The addition of software algorithms that automatically inform a user or system of critical information is a valuable feature that augments the distinctive and rich data our sensors produce. We see wide applicability of these tools in our innovation of highly advanced solutions, and we look forward to the collaboration with the CVEDIA team.”
27 Aug 18. Arlington Capital Partners Announces the Acquisition of Black Box’s Government Solutions Business, Forming Tyto Athene. Arlington Capital Partners (“Arlington”), a Washington, DC-based private equity firm, today announced it has completed the acquisition of the Government Solutions division of Black Box Corporation (NASDAQ: BBOX). Going forward, the business will operate independently as Tyto Athene (the “Company” or “Tyto Athene”). Tyto Athene is a full-service systems integrator and managed services provider of communications systems for Department of Defense and Civilian agency enterprise operations worldwide. Tyto Athene will be led by the existing management team, including Jeff Murray, the current Senior Vice President of Black Box Government Solutions, as CEO. Chris Meilhammer has been appointed the Company’s COO, and Jason Alexander will continue to lead the Company’s service delivery teams as Vice President of Operations. In connection with the transaction, Arlington Capital partnered with the former CEOs of Black Box Corporation, Terry Blakemore and Mike McAndrew, who will join the Board of Directors.
Michael Lustbader, a Managing Partner at Arlington, said, “We have been very impressed with the management team and the differentiated solutions that the Company provides to their government clients as well as the Company’s ability to develop new technologies such as the Acuity Micro Data Center; we believe that this technology will successfully address a strategic gap at the edge of the information infrastructure of Tyto Athene’s clients. Additionally, we believe that the Company will benefit from a number of secular tailwinds that will allow it to continue its strong performance as the U.S. government modernizes its legacy IT infrastructure.”
“As an independent company dedicated to developing solutions to the increasingly complex information needs of our clients, Tyto Athene will have a greater level of flexibility to meet those needs,” said Jeff Murray. “Our stakeholders can rest assured that the Company is on sound financial footing, and that we will continue to provide our clients the services and solutions to meet their business and mission needs. Arlington has a successful history of building market-leading government services businesses and we are excited to partner with Arlington to form Tyto Athene.”
Gordon Auduong, a Vice President of Arlington, added, “We are impressed with the Company’s proven past performance on highly-recurring managed services contracts, which provide the business with significant revenue visibility, as well as successful execution on large, multifaceted projects. We believe that Arlington can provide the strategic support and necessary investments to accelerate this exciting platform. We are looking forward to partnering with the management team to help them build Tyto Athene.” (Source: BUSINESS WIRE)
24 Aug 18. KLEOS Space Successfully Raises Capital and Heads into the Australian Stock Exchange. Luxembourg/Sydney based company, Kleos Space S.A., have successfully closed AU$11m in funding and will begin trading on the Australian Stock Exchange today (Friday, August 24) at 11:00 a.m. Co-founder and CEO of the company, Andy Bowyer, feels that the interest shown in Kleos’ by investors is reflective of the worlds current desire to advance space-powered intelligence, particularly in Australia. Backed by the Luxembourg government, the company’s satellites will be able to locate radio transmissions from anywhere on Earth, detecting where the transmission was transmitted from… and when. Plans to construct the company’s first satellites are already underway. After the successful first mission, Kleos hopes to grow their number of satellite systems and strengthen the company’s service offering. In May, the federal government introduced a new legislation aimed at growing Australia’s satellite launch capability, and announced it will provide $26m to establish a national space agency. In 2017 the Government also pledged to invest $500m in improving Australia’s space-based Intelligence, Surveillance and Reconnaissance (ISR) capabilities.
Executive Comments
Andy said that the capital raising had significant interest from Australian based institutional groups. The company’s listing comes at a time where governments around the world are seeking new technology to protect their borders — the company believes Kleos will provide a solution. When ships turn off their transponders at sea, the firm’s satellites can capture the ships other transmission activity from space. This other data is critical for governments and will give them the ability to track ships used by drug and people smugglers, terrorists, pirates, illegal fishermen and those in need of search and rescue..
Mr. Bowyer added that the firm has a Non-US (rest of world) first mover advantage to work with governments and commercial information users in the global $41bn Intelligence Surveillance Reconnaissance (ISR) market. The firm then aims to scale their customer base into wider non-maritime and non-defense markets, such as environmental protection, search and rescue services and insurance services. Kleos Space recently signed an $3.5m agreement with Nasdaq-listed GomSpace, who will deliver the company’s first satellite system by mid 2019. The company is also in early stage discussions with a number of high profile space race contenders who have the ability to launch Kelos satellites into orbit.
Andy continued and said the firm is aiming for 20 satellite systems in LEO until there is continuou, worldwide coverage. This improves the company’s service offering by providing surveillance across a number of markets, with near real-time information tailored to a customer’s needs.
Peter Round, Chairman of Kleos Space and ex Capabilities Director at the European Defence Agency, hopes that the Australian Government will become one of their future customers in the company’s regional expansion plans. He noted that with Australia’s large coastline borders under the constant threat of people smuggling and illegal fishing, the firm’s satellite technology offers an alternative to current land-based solutions, which are expensive, technically limited by range, and subject to counter threats. It is clear that Australia is seeking new technologies to support its defense operations, border protection and humanitarian missions, and Kleos Space plans to leverage their Canberra based office to align with these Australian Government initiatives. (Source: Satnews)
22 Aug 18. Communications & Power Industries Announces More Acquisitions. This Time It’s Two Companies. Communications & Power Industries (CPI) has not just one but two acquisitions to announce that will greatly broaden their family of antennas. The two acquired companies are Orbital Systems, Ltd. and Quorum Communications, Inc. from their co-founders that design and manufacture associated ground-based full-motion antenna products that play a key role in communications applications. Orbital Systems provides antenna systems primarily for communications with Earth observation satellites in Low Earth Orbit (LEO) and telemetry, tracking and control (TT&C) applications, while Quorum Communications, its sister company, provides satellite microwave receivers, downconverters and other communications products. Another positive aspect is that CPI intends to retain the leadership, personnel and facilities of the newly acquired companies that includes the three co-founders and principals, Carl Schoeneberger, Allan Bundens and Richard Fogle, who will join CPI. CPI intends to continue to utilize Orbital Systems’ and Quorum Communications’ shared manufacturing facilities in Irving, Texas.
Tony Russell, president of CPI Antenna Systems Division remarked that Orbital Systems’ and Quorum Communications’ antenna products are thoughtfully designed for very high reliability and ease of operation, even in the harsh environments to which Earth observation antennas are subject.
Additionally, the companies have demonstrated a winning combination of extensive systems-level expertise, well-chosen antenna pedestal technology, reasonably priced solutions, and a forward-facing architecture designed to address opportunities for satellite communications programs with medium Earth orbit and low Earth orbit satellite customers. Their approach, products and technology are an excellent complement to CPI’s existing antenna product offerings.
Carl Schoeneberger, president of Orbital Systems stated that when evaluating potential buyers, they knew that they wanted a partner that is respected in the industry, that shared their dedication to providing reliable and affordable, yet state-of-the-art, antenna products to commercial, academic and government customers, and that will be able to grow the business and sustain it over the long term. They found that partner in CPI, and we look forward to Orbital Systems and Quorum Communications being part of the CPI team.
At the time of this news release the terms of the acquisition were not disclosed. Coupled with CPI’s recent purchase of the large-diameter satellite communications antenna family from Viasat Inc., the acquisition of Orbital Systems and Quorum Communications enables CPI to offer commercial and government customers a comprehensive range of limited-motion and full-motion antenna products. The acquired companies will be integrated into CPI’s Antenna Systems Division, bringing proven, reliable, innovative and synergistic technology and products to an already broad portfolio of advanced antenna products for communications, telemetry and radar applications: The CPI antenna family includes:
- For communications applications; CPI’s antenna products comprise limited- and full-motion antenna products and range from under one meter to 18 meters in size. These include data link products for line-of-sight communications (from and among ground-based, airborne and shipboard systems) and a variety of antenna products to address satellite communications applications related to all types of geostationary (GEO), medium Earth orbit (MEO) and LEO satellites.
- For telemetry applications; CPI provides a number of telemetry, tracking and control (TT&C) products that enable precise tracking of fast-moving objects and aerial vehicles. CPI’s telemetry antenna products include ground-based, transportable, mobile and shipboard systems.
- For radar applications; CPI’s antenna products include direction finders, air traffic control antennas and weather radar antennas up to 14 meters in size.
Satellite Innovation will be presenting “Antenna Performance and Economics – The Influence of New Materials and Processes” at 1:30 p.m. on October 9 in Silicon Valley, California, and Mr. Andre Jones, Vice President of Business Development for the Antenna Systems Division of Communications & Power Industries (CPI), will be one of the speakers for this important session. He is responsible for the division’s global business development and marketing efforts across satellite, radar, high frequency, data link and telemetry products. While antennas have continued to grow smaller, lighter, more durable and capable, the market is evolving rapidly as costs decrease and mobile application become a more vital segment. The session will address not only phase array, but other areas of antenna design to lower SNR and further optimize antenna design. The growth of HTS and mobile markets have changed the priorities of antenna manufacturers significantly – where do new opportunities lie, and how will new market influences effect todays established antenna manufactures? (Source: Satnews)
24 Aug 18. Kongsberg reports falling defence revenue in second quarter. Norwegian state-controlled defence and maritime supplier Kongsberg Gruppen released its financial results for the second quarter of 2018 on 24 August, revealing a year- on- year (y/y) fall in revenue in both its defence and overall business revenue. Total sales in the three months to the end of June were NOK3.5bn (USD420m), a fall of 5.6% on the same period in 2017. In the company’s defence and aerospace segment sales fell even further; at NOK1.4bn they were down 9.4% (y/y), making up 40% of the company’s total revenues. However, in both cases earnings before interest, taxes, depreciation and amortisation (EBITDA) showed an improvement in 2018. (Source: Google/IHS Jane’s)
23 Aug 18. Hyundai completes restructuring. South Korea’s Hyundai Heavy Industries (HHI) group has announced its transition to a holding company following a period of industrial restructuring that started in late 2016 as a result of fiscal constraints. HHI Holdings said in announcements to the Korean Stock Exchange on 22 August that the group’s restructuring was completed through mergers of subsidiaries that enabled its primary subsidiary, the HHI company, to directly control key shipbuilding businesses, Hyundai Mipo Dockyard and Hyundai Samho Heavy Industries. Under the group’s new structure, HHI Holdings will control a series of affiliated companies that were previously divisions of a larger HHI corporation. (Source: IHS Jane’s)
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Odyssey is an independent corporate finance firm which advises on acquisitions, business sales, management buy-outs and raising finance, typically in the £5m to £100m range. We have extensive experience in the niche manufacturing sector with our most recent completed deal being the sale of MacNeillie to Babcock Plc. Details can be seen at: http://www.odysseycf.com/case-study-macneillie/
As a result of this and related projects we have developed relationships with buyers and funders looking to acquire or invest in the sector. We would be happy to share further insights into the sector and to carry out reviews of businesses whose shareholders are considering an exit, acquisition or fundraise.
The review will include:
* Valuation
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* MBO viability
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There is no charge for this review.
If this is of interest we would be happy to meet at your convenience.
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