Sponsored by TCI International Inc.
www.tcibr.com
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06 Jan 22. Leidos Announces Investment in Innovative Commercial Radio Frequency Monitoring Company HawkEye 360. Leidos (NYSE: LDOS), a FORTUNE® 500 science and technology leader, today announced it will make a strategic investment in HawkEye 360, the world’s leading commercial provider of space-based radio frequency (RF) data and analytics. The companies will share information and combine efforts to achieve transformational growth in data and analytical services.
“We are pleased to invest in HawkEye 360 and their innovative work to enhance geospatial intelligence solutions,” said Leidos National Security Space Executive Vice President Paul Engola. “We’re confident this investment will strengthen our robust capabilities in the National Security Space arena. This will also create innovative pathways to deliver bold solutions to our customers as they work to safeguard U.S. and allied interests.”
“HawkEye 360 is pleased to welcome such a distinguished defense and intelligence leader as Leidos to our group of world class investors,” said HawkEye 360 CEO John Serafini. “We look forward to harnessing their support to create significant value not only for the defense, intelligence and national security communities, but also for organizations addressing some of the most complex global challenges facing humanity and the environment.”
Leidos’ investment in HawkEye 360 will build on the company’s multi-decade heritage of serving National Security Space customers. It will also support the creation of new, differentiated technological capabilities.
HawkEye 360 delivers a groundbreaking source of global knowledge based on RF geospatial intelligence, further accentuating Leidos’ efforts to make the world a safer place. This mutual agreement will accelerate the company’s growth while creating new opportunities for customers in the humanitarian, environmental, commercial and national security sectors.
About HawkEye 360
HawkEye 360 is delivering a revolutionary source of global knowledge based on radio frequency (RF) geospatial intelligence to those working to make the world a safer place. The company operates the first-of-its-kind commercial satellite constellation to detect, characterize, and geolocate a broad range of RF signals. This unique RF data and analytics equip our global customers with high-impact insights needed to make decisions with confidence. HawkEye 360 is headquartered in Herndon, Virginia. (Source: PR Newswire)
06 Jan 22. Paragon Space Development Corporation Agrees to Acquire Final Frontier Design.
Paragon to strengthen its position as a leading supplier of life support services for the commercial space market.
Paragon Space Development Corporation (Paragon) is excited to announce today it has entered into a definitive agreement to acquire Final Frontier Design (FFD), a leading supplier of spacesuits and ancillary components for NASA and other commercial customers. FFD currently has several NASA contracts for spacesuit components and has a Space Act Agreement with NASA for its IVA suit.
This capability – combined with Paragon’s history of Portable Life Support Systems (PLSS), uniquely positions Paragon as the only single company in the United States to offer a complete EVA system. Paragon’s unprecedented PLSS experience in design, integration, and operation on such programs as the StratEx Mission (which set three world-records) and the NASA Constellation Spacesuit System (CSSS) with Oceaneering – places the new Paragon team as a strong contributor on NASA’s new xEVAS (Exploration Extravehicular Activity Services) program. The xEVAS program will select one or more companies to provide their new spacesuit for the Artemis program in early 2022.”
“We are extraordinarily excited to move forward on our suit offerings – and now, with FFD as a core part of our team – we are more than confident that we’ve got the strongest and most innovative solution to go head-to-head with other competitors in this space. With the addition of FFD’s capabilities within Paragon, we know that our engineering talent, novel design approach, and decade’s worth of direct experience and deep knowledge of the NASA customer will combine to produce the best spacesuit solutions for NASA’s vital mission and the emerging commercial customers.” said Grant Anderson, President and CEO for Paragon.
Ted Southern, President of FFD, added, “We are excited to take FFD’s capabilities to a new level and to the expanded market with the combination of our strengths and Paragon’s overall life support in extreme environment mission. The FFD team stands ready to be fully integrated and to take advantage of the greater resources and capabilities the combination of our two companies bring to the market.”
Whether human spaceflight operations consist of simply orbiting the Earth, or whether they are directed toward Mars, spacesuits are a mission-critical platform. Astronauts currently rely on Extravehicular Mobility Units (EMU) – a system that is composed of both the actual spacesuit and the additional technologies that connect the astronaut in an EMU to the ISS or other platforms – which were initially developed almost a half-century ago. But with new operational requirements for NASA and demands that are emerging in the commercial world, particularly for long-endurance missions into space and next Newspace tourism, the new next-generation of spacesuits will be one of the most vital parts of the entire human effort to expand and enhance NASA’s human spaceflight program and human spaceflight in general.
FFD’s newest EVA pressure garment system (PGS 2.0) has an overall enclosure weight of 55 pounds on Earth, which is approximately half of the mass of NASA’s xEMU PGS. “FFD’s mass-saving garment system – we could almost call it a ‘lightweight system’ – is a technological game-changer. And if you can cut mass with increased mobility, you’ve got more flexibility in other key areas thus making the entire of spacecraft systems perform better.” added Grant Anderson, Paragon President & CEO.
Ted Southern, President of FFD, added, “It goes without saying that absent a spacesuit, you don’t have human spaceflight – it is really that important. For us, this is about advancing this technology on a much more strategic level, with a long-term vision and trajectory. We are looking to not only exceed the mark for the xEVAS specific need – but help our NASA partners think ahead and anticipate future challenges in this area and design a truly paradigm-shifting suit. We know that our level of expertise and technological creativity will help develop a highly workable, user-intuitive, safe, and flexible spacesuit – the ultimate life-support system for the ultimate hostile environment – that we think will be very attractive to NASA.”
For over 28 years, Paragon has been on the forefront of systems designed for extreme environments in sea, land, air, and space. Paragon has a successful history of providing design, analysis and/or hardware on every human space program of record since 1999. Since then, Paragon has grown in personnel, design, analysis, manufacturing, and operational capabilities to support the most current and forward-leaning civil and commercial space programs. For more information and other news, visit www.paragonsdc.com. (Source: PR Newswire)
06 Jan 22. Vita Inclinata Reports Strong 2021 Growth. Company Meets Milestone of Shipping First Systems And expands Into the International Market. Vita Inclinata (Vita), developer and producer of helicopter and crane load stabilization and precision hardware, today announced the company’s notable 2021 market growth. Highlights for the fiscal year-end December 31, 2021, that contributed to the company’s growth include increasing headcount to 65 employees worldwide, introducing seven new products to the market—including the Vita Rescue System and Vita Lifting Systems for aerospace and industrial, respectively—and entering the international market of the United Arab Emirates.
“Vita’s impressive success is directly attributed to the collective passion of our talented team who have embraced the company’s mission to save lives and effectively introduced our innovative technologies to search and rescue, firefighting, public safety, construction, wind turbines, oil and gas operations, and other organizations,” said Caleb Carr, president, and CEO, Vita. “We look forward to expanding upon our 2021 success as we continue to evolve the manner in which helicopter rescues and crane lifts are conducted.”
Throughout 2021, Vita met its aggressive product delivery schedule, introducing new life-saving technologies to the market, including:
- The Vita Load Pilot, the original system that first allowed for stabilization of cargo under helicopters and evolved into a product that stabilizes loads under construction cranes. The technology was developed to replace taglines, which is an outdated and inferior method of controlling a load. The first system was purchased by HOLT in August 2021.
- The Vita Load Navigator, enables custom load-size configurations under cranes by attaching to a spreader bar system—making navigating loads faster, safer, and more precise. The first system was purchased by Trident Construction for 2022.
- The Vita Rescue System, attaches to litter baskets, bags, and other rescue systems to provide a safe operation from ground to helicopter, during litter insertion and patient extraction. The system speeds up operations by 300%, saving hover time and pilot fatigue as well as enabling more patients to be rescued when seconds count. The U.S. Army purchased 15 systems for 2022.
To support its growth, Vita nearly doubled its headcount, bringing the total number of employees to 65, as well as adding the following executives to its senior management team:
- Carl Reidlin – VP of Federal Programs
- Patrick Murphy – Board of Directors
- Will Roper – Board of Directors
- Steve Alesio – Board of Directors
- J. Ray Davis – Senior Advisor, Army National Guard Affairs
- David Lee – Director of U.S. Industrial Sales
Throughout the year, Vita’s strong momentum continued to capture the attention of journalists and leading industry organizations, as the company was recognized by:
- BizWest – Innovation of the Year Award
- MarCom International – Gold Award in Film/Video (Government)
- Association Of The U.S. Army (AUSA) – xTechSearch Winner
About Vita Inclinata
A friend’s death during a rescue operation—with a helicopter close but unable to stabilize due to weather and terrain—was the genesis of Vita Inclinata. Founded in 2015 as a way to solve a real problem, Vita today controls chaotic swinging and spin and adds safety and precision for rotor-wing and fixed-wing aircraft and cranes. With the mission of “Bring them home, every time,” Vita’s technology changes the narrative while saving lives, time, and money across industries, including search and rescue, military, firefighting, public safety, construction, wind energy, and oil and gas. The company is headquartered in Broomfield, Colorado, with offices in Washington, DC, and Huntsville, Alabama. For more information, please visit www.vitatech.co.
06 Jan 22. Kaman Announces New Reporting Segments. Kaman Corporation (NYSE: KAMN) announced today that it will change the presentation of its financial results to report three segments. The new reporting structure will enhance transparency across the company as part of its ongoing growth strategy and portfolio management. The new segments are as follows:
- Engineered Products: This segment will serve the aerospace & defense, industrial and medical markets providing sophisticated, proprietary aircraft bearings and components; super precision, miniature ball bearings; and proprietary spring energized seals, springs and contacts.
- Precision Products: This segment will serve the aerospace and defense markets providing precision safe and arming solutions for missile and bomb systems for the U.S. and allied militaries; subcontract helicopter work; restoration, modification and support of our SH-2G Super Seasprite maritime helicopters; manufacture and support of our heavy lift K-MAX® manned helicopter, the K-MAX TITAN™ unmanned helicopter and the KARGO UAV unmanned aerial system, a purpose built autonomous medium lift logistics vehicle.
- Structures: This segment will serve the aerospace & defense and medical end markets providing sophisticated complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft, and medical imaging solutions.
“This segmentation aligns with the company’s overarching strategy to provide better visibility to the performance of Kaman’s portfolio in support of our capital allocation plans, portfolio management, and profitable growth. This new structure will not add cost but be a better way to share and describe the direction of our company,” says Ian Walsh, President and Chief Executive Officer. “The new reporting segments will better align our strong brands and product capabilities across our businesses and provide more transparency to our investors.”
Kaman will begin reporting its quarterly and full year financial statements under the new segment structure in the company’s Annual Report on Form 10-K for the year ended December 31, 2021, which is expected to be filed with the U.S. Securities and Exchange Commission on or about February 24, 2022. Summary segment information will also be included in the company’s year-end earnings release furnished to the SEC on Form 8-K, and on our website at http://www.kaman.com. (Source: BUSINESS WIRE)
06 Jan 22. SRT Marine Systems Making waves. A marine domain awareness communications technology company has landed a major contract and others are set to follow in short order. Aim-traded SRT Marine Systems (SRT:47p), a global leader in AIS, an advanced identification communications technology used to track and monitor maritime vessels, has been awarded the first of four systems projects in its near-term validated sales pipeline (all in South East Asia and Middle East), which combined are worth £71m over a two-year delivery period.
The contract from a national coastguard is worth £40m over two years for the installation of a national scale marine domain awareness (MDA) system that will track, monitor and manage all maritime activity in their territorial waters in real time from multiple command centres across the country. The system incorporates a range of sophisticated functionalities such as vessel information and identification, and AI analytics that automatically detect, alert and categorise suspicious and illegal activities.
The other three contracts (worth £31m in total) are all expected to close before the 31 March financial year-end. SRT’s chairman, Kevin Finn, also notes that three other contracts worth £54m (two in the Middle East and one in Asia) have “unexpectedly progressed and could materialise during the current financial year”. These potential contracts form part of SRT’s validated systems contract opportunity pipeline which has an aggregate value of £550m.
Importantly, the group is well funded for the accelerated project roll-out. Net debt of £5.4m includes a low-cost £2.2m bank loan (2.84 per cent interest rate), and SRT has drawn down £5.3m from a £20m secured loan note programme. Upfront payments on new contracts and further milestones on SRT’s flagship Philippines project (installation of monitoring systems, coast stations, vessel transceivers and satellite data feeds) will boost the group’s cash position.
House broker finnCap plans to relaunch forecasts once the other contracts in the near-term pipeline close, but I maintain the view that SRT could be making annualised revenue of £50m in calendar 2022 through a combination of transceiver sales (annual revenue of around £8.4m) and MDA systems contracts. Based on a gross margin of 40 per cent, and factoring in annual fixed overheads of £8m, the ramp up in revenue could deliver annual pre-tax profits north of £10m, a hefty sum for a £79m market capitalisation company.
I last rated the shares a buy, at 37p (‘Set fair for a profitable voyage’, 29 July 2021), and can see material upside beyond my 55p target price, assuming the other six near-term contracts (worth £85m) are landed, as seems highly likely. Buy. (Source: Investors Chronicle)
05 Jan 22. Triman Industries, a Portfolio Company of AE Industrial Partners, Acquires Brighton Cromwell and Crestwood Technology Group.
Strategic Combination Creates a Leader in Military Aftermarket Distribution & Supply Chain Management.
AE Industrial Partners, LP (“AEI”), a private equity firm specializing in aerospace, defense & government services, space, power & utility services, and specialty industrial markets, announced today that its portfolio company Triman Industries (“Triman” or the “Company”) has acquired Brighton Cromwell and Crestwood Technology Group (“CTG”). Shareholders from both Brighton Cromwell and CTG will retain significant ownership in the Company and remain in leadership roles going forward. Terms of the transactions were not disclosed.
The strategic combination of these three highly complementary businesses will form a leading military aftermarket supply chain management platform with significant scale, broad market reach and a unique value proposition for its U.S. and international military customers and more than 85 OEM partners.
“Our mission is to deliver a differentiated value proposition to our customers and supply chain partners,” said Dan Edwards, CEO of Triman Industries. “The combination of these three highly complementary businesses provides us with a unique set of solutions, infrastructure and talent required to deliver a high level of value and service to our customers and supply chain partners.”
The combined company is strategically focused on the military aftermarket and offers a broad set of supply chain management solutions including distribution, program management, kitting & logistics, obsolescence management, counterfeit avoidance, engineering services and repair management, across a range of highly engineered, mission-critical mechanical, electrical and structural components. It combines best-in-class supply chain management capabilities, a high level of customer and program level access, deep business development resources and proprietary analytics to ensure operational readiness for its customers while driving value for its OEM and supply chain partners. With over 10 offices globally, more than 120,000 feet of facility space, and approximately 200 employees with deep domain expertise, the combined company’s scale, infrastructure and resources can support a large and growing group of supply chain partners and military customers with highly customized solutions.
“The military aftermarket is large and complex and requires best-in-class supply chain management solutions to ensure high levels of performance and operational readiness,” said Jon Nemo, Senior Partner at AEI. “We are excited to combine these three great businesses to create a truly differentiated leader in the military aftermarket.”
Triman, based in West Berlin, NJ, is a premier provider of distribution, supply chain and repair management solutions to the military aftermarket. Triman represents a growing list of over 65 OEM partners and serves as the critical link between highly engineered systems and components and the military end user, providing a full suite of value-added services including inspection & testing, warehousing, packaging, contract administration, sales & business development, export management, repair management and engineering.
Brighton Cromwell, based in Morristown, NJ, is a technology-enabled supply chain integrator providing distribution, logistics and kitting solutions to the Department of Defense, prime contractors and OEMs globally. It has established exclusive partnerships with over 20 OEMs, providing a large number of aftermarket parts and equipment for a wide variety of tactical military vehicles, aircraft and naval systems. Brighton Cromwell leverages its proprietary IT system, SEDNATM to drive workflow and provide unique data analytics to its OEM partners and customers. BC Engineered Products, a division of Brighton Cromwell which designs and manufactures military products, was carved out and remains under the ownership of Rob and Glenn Van Etten. Triman is the exclusive distribution partner to BC Engineered Products going forward. Please visit www.BCEP.com to learn more.
CTG, based in Yonkers, NY, provides supply chain solutions designed to keep fleets and systems operational, ready and safe by supplying parts, materiel and obsolescence management solutions to the Department of Defense, commercial airlines, MRO providers and OEMs. It specializes in sourcing obsolete and hard-to-find parts across a broad range of air, ground, sea, cyber and space domains, while meeting the cost, schedule and performance goals of its customers. CTG is also recognized as a leader in counterfeit avoidance testing and inspection and is the first to earn AC7402 CAAP (Counterfeit Avoidance Accreditation Program) certification, which is recognized by customers and the industry as the highest quality management and inspection standard for suppliers and distributors.
Rothschild served as the financing advisor and Akerman LLP and Kirkland & Ellis LLP served as legal counsels for AEI and Triman. Duff and Phelps served as the exclusive financial advisor and Kudman Trachten Aloe Posner LLP served as legal counsel for CTG. Fairmount Partners served as the exclusive financial advisor and Blank Rome LLP served as legal counsel for Brighton Cromwell.
About AE Industrial Partners
AE Industrial Partners is a private equity firm specializing in aerospace, defense & government services, space, power & utility services, and specialty industrial markets. AE Industrial Partners invests in market-leading companies that can benefit from our deep industry knowledge, operating experience, and relationships throughout our target markets. AE Industrial Partners is a signatory to the United Nations Principles for Responsible Investment and the ILPA Diversity in Action initiative. Learn more at www.aeroequity.com.
(Source: PR Newswire)
05 Jan 22. Integrated Global Services Acquires AmStar. Integrated Global Services, Inc. (“IGS”), a leading provider of surface protection solutions and portfolio company of investment affiliates of J.F. Lehman & Company (“JFLCO”), is pleased to announce it has acquired GE Steam Power’s on-site thermal spray coatings technology, AmStar. AmStar’s 888 material and related corrosion- and erosion-resistant coatings offer a proven track record of reliable pressure part protection for over two decades.
“This is tremendous news for our customers,” said Rich Crawford, President and CEO of IGS. “We are excited to further enhance IGS’s broad portfolio of bespoke solutions by acquiring the patented AmStar 888 technology. This combined solution set provides historical customers with an expanded offering to address their surface solution needs. Our acquisition of Amstar represents another step in IGS’s mission to be the most valued provider of engineered solutions in the world for mission-critical equipment, and our ongoing commitment to support GE customers in the U.S., Europe, South America, and Asia.”
Based in Richmond, VA, IGS is an international company with over 30 years of experience in providing in-situ internal thermal spray surface protection solutions, internal ceramic coating solutions, and environmental products that focus primarily on metal wastage reduction, corrosion mitigation, process efficiency improvements, and emissions reduction. Specializing in customized, engineered solutions, IGS is the largest provider of in-situ thermal spray and ceramic surface protection.
IGS maintains global operations with locations across the U.S., Canada, Europe, the Middle East, Africa, and Asia.
05 Jan 22. Fairbanks Morse Defense Expands Turnkey Solutions with Federal Equipment Company Acquisition. Fairbanks Morse Defense (FMD), a portfolio company of Arcline Investment Management (“Arcline”), today announced its acquisition of Federal Equipment Company (FEC). The acquisition significantly expands FMD’s product capabilities and service solutions for shipyard, defense, and industrial customers – with emphasis on its support for and offerings to the U.S. Nuclear Navy.
The transaction includes FEC Military, a global leader in designing and manufacturing mission-critical components and systems for the U.S. Navy and U.S. Coast Guard, including its advanced cargo elevators, engineered doors and specialized material handling equipment. The transaction also includes FEC’s commercial business, which delivers handling solutions to manufacturing customers outside the defense market.
“Fairbanks Morse Defense is committed to the values that define us as a leading defense contractor. The capabilities, experience, and quality reputation that we’re acquiring with FEC reinforce this commitment and solidify our position as a proven, single-source provider to our naval customers,” said FMD CEO George Whittier. “Both FEC and Fairbanks Morse Defense have highly experienced teams who understand the critical role that our customers play in protecting the nation, and they are all dedicated to delivering the highest quality service in support of that mission. Combining our knowledge and capabilities makes us a powerful asset for the defense industry.”
The FEC acquisition adds extensive capabilities to FMD, solidifying Fairbanks Morse Defense’s position as an integrated defense contractor and turnkey solutions provider to the U.S. Navy and U.S. Coast Guard. In recent years, FMD has completed multiple acquisitions to better serve defense customers, including its acquisitions of Hunt Valve Company, Ward Leonard, and Welin Lambie.
Founded in Ohio in 1982, FEC has approximately 145 employees. The company is headquartered on its campus near Cincinnati, Ohio, which includes two facilities totaling 100,000 square feet. In addition, FEC has begun construction on a 50,000 square foot facility, which will further increase its manufacturing capacity and capabilities. This building is expected to open in mid-2022.
“Through the process of designing and creating the systems for today’s and tomorrow’s marine fleets, we’re proud to have earned a reputation for successfully taking on some of the most difficult engineering and manufacturing challenges for the Navy, Marines, and the Coast Guard,” said FEC President Doug Ridenour. “Fairbanks Morse Defense has earned a similar reputation for excellence in the defense industry, which makes this a great fit for both companies.”
About Fairbanks Morse Defense (FMD)
Fairbanks Morse Defense (FMD) builds, maintains, and services the most trusted naval power and propulsion systems on the planet. For more than 100 years, FMD has been a principal supplier of a growing array of leading marine technologies, OEM parts, and turnkey services to the U.S. Navy, U.S. Coast Guard, Military Sealift Command, and Canadian Coast Guard. FMD stands ready to rapidly support the systems that power military fleets without compromising safety or quality. In times of peace and war, the experienced engineers, sailors, and technicians of FMD demonstrate our commitment to supporting the mission and vision of critical global naval operations wherever and whenever needed. FMD is a portfolio company of Arcline Investment Management.
To learn more, visit www.FairbanksMorseDefense.com.
About Federal Equipment Company (FEC)
Federal Equipment Company (FEC) was incorporated in Ohio in 1982 as a partnership of experienced shipboard equipment engineers and technical experts in specialized material handling equipment. Working closely with the many domestic shipyards for their various projects, the company grew with the added benefit of the expansive machining capabilities located in and around the Ohio Valley Area. Since then, the company has vastly expanded its capabilities and geographic presence, emerging as an internationally recognized organization. (Source: BUSINESS WIRE)
05 Jan 22. Government gains new powers to block foreign takeovers. After a blockbuster year for buyouts, ministers can now stop acquisitions that could harm national security. New rules giving government ministers the power to block acquisitions of UK companies that they believe could threaten national security came into force on Tuesday. The National Security and Investment Act, which is being implemented following months of contentious debate, is seen as one of the most far-reaching policies of its kind in the world. The government describes it as “the biggest shake-up of the UK’s national security regime for 20 years”. The legislation follows one of the biggest years on record for takeovers in the UK. After a number of businesses were targeted by international rivals, including chipmaker Arm and defence supplier Ultra Electronics (ULE), the rules aim to address concerns about foreign ownership of certain British companies.
Businesses and investors must now notify the government of acquisitions involving companies that operate in any of 17 sensitive areas, including defence, transport or artificial intelligence. After scrutinising the deal, ministers can then choose to impose conditions on the acquisition or unwind it completely. However, some business leaders have warned the new rules could weaken the appetite for broader investment into the country. As other government departments try to lure overseas investors post-Brexit, lobby group TheCityUK cautioned in September that new bureaucracy could deter foreign investment. The government’s own assessment in 2020 estimated that up to 1,830 deals a year could be notifiable, although it believed that less than 100 would be subject to a national security review.
The government has sought to reassure businesses, emphasising that the vast majority of deals will “proceed without delay”. Writing to companies last month, business minister Lord Callanan stressed that an open approach to investment must be balanced with “measures that protect the safety of our citizens”. The new rules apply to any acquisition made from November 2020. After the government opened investigations last year into the takeovers of Arm and Ultra Electronics, both of which were targeted by US-owned rivals, these deals could now be subject to closer scrutiny. (Source: Investors Chronicle)
04 Jan 22. Rolls-Royce shares climb as Bergen sale confirmed. Company expects to generate €91m to help pay down debt.
- Bergen makes engines for ships and power plants
- Company generated about €250m in revenue last year
Rolls-Royce’s (RR) shares climbed 4 per cent after the engine maker said it had completed the sale of its Bergen Engines business to Langley Holdings. The aero engine supplier was one of a number of travel-linked companies whose shares rebounded as evidence suggests that the Omicron coronavirus variant is proving to be more transmissable though less deadly than the previously-dominant Delta variant.
Rolls-Royce said it expects proceeds of €91m (£76m) from the Bergen Engines sale. It will also retain €16m of cash. The money will be used to pay down debt.
The deal is the latest of a series of disposals by Rolls-Royce, which include the €1.7bn sale of its ITP Aero business in Spain in September to Bain Capital Private Equity, as it looks to rebuild its balance sheet.
The company said in August 2020 it expects to raise €2bn from asset sales as it bids to regain an investment-grade credit rating it lost a month earlier after Moody’s downgraded its debt.
Bergen Engines is based in Norway and makes medium-speed engines used in ships and power plants. The company employs 950 people and generated about €250m of revenue last year.
Rolls-Royce’s shares have see-sawed in recent months as good news about contract wins for the US military and funding for its small modular reactor consortium has been offset by renewed disruption to long-haul travel.
The company’s shares currently trade at 23 times FacSet forecast earnings, but a recovery in aviation should help to improve earnings and bolster ongoing efforts to repair its balance sheet. We maintain our buy recommendation. (Source: Investors Chronicle)
04 Jan 22. Trexon Acquires Power Connector, Inc. The Power Connector Inc. Acquisition adds Custom Interconnect Solutions for Tactical Communication Applications to the Growing Engineered Products Division Portfolio
Trexon, a portfolio company of Audax Private Equity, announced today that it has completed the acquisition of Power Connector Inc. (“PCI”), a leading supplier of Tactical Communications interconnect for military applications. Founded in 1987 and based in Suffolk County, NY, PCI is a Defense Logistics Agency QPL manufacturer of MIL-DTL-55181 and MIL-DTL-55116 connectors. Designed into hand-held and mounted radio systems, PCI’s power connectors, audio connectors and other interconnect components complement Trexon’s existing specialty connectivity offerings for mission critical applications. PCI’s commitment to excellence and innovation is demonstrated by its high performance equipment, stringent quality standards, and skillful, dedicated employees.
Regarding the addition of PCI to the Trexon team, Jeff Crane, President and Chief Executive Officer of Trexon stated, “With this acquisition, Trexon continues to build a market leader of specialty connectivity solutions for mission-critical applications. We look forward to working with the strong team that Andy Linder has built as we look to maximize the growth potential of PCI.”
Of the transaction, Dr. Nildeep Patel, President of Trexon Engineered Products Division stated, “The addition of PCI adds yet another component to the value-add cable, connectivity / interconnect solutions that are currently offered by Trexon within the Aerospace and Defense markets, while expanding our product portfolio into specialty power and audio connectors. We believe this will be a symbiotic relationship, allowing PCI to benefit from our broad technical expertise, international salesforce, and global footprint.”
Speaking on the transaction, Todd West, PCI General Manager, said “We believe the new coupling of Trexon’s Engineered Products Group with PCI’s advancement into lighter weight, small form factor connectors paves the way for a quicker time to market in support of the dynamic needs of the defense communication industry.”
And, speaking of the transaction, PCI’s founder, Andrew Linder, added “PCI was founded upon the basic principle of responding to the needs of customers in a timely and competitive fashion while never compromising the integrity of the products we manufacture. We believe Trexon’s partnership with PCI will enhance Trexon’s solutions offerings to the high reliability end-markets it serves, such as the Aerospace & Defense, semiconductor, subsea, renewables, and medical devices industries, among others. The transaction will expand Trexon’s portfolio of specialized tactical communications connectors and value-added services such as cable assemblies, box builds, and electro-mechanical hardware for high-reliability, mission critical applications. We are most excited about the future.”
About Trexon:
Founded in 1979, Trexon (formerly TPC Wire & Cable Company) is a leading designer and provider of high-performance wire, cable, connectors, assemblies, and accessories used in harsh, high cost-of-failure environments. Trexon’s products are designed to exceed customer performance specifications and withstand abuse from impact, abrasion, flexing, chemicals, extreme temperatures, miniaturization, and other demanding design requirements. Trexon’s products are specially constructed for a wide range of design challenges across high-reliability applications in diversified industrial end markets, defense, aerospace, medical and other industries. For more information, visit trexonglobal.com.(Source: BUSINESS WIRE)
04 Jan 22. PFN Group Announces NP Aerospace Divestment. Saskatchewan Canada based PFN Group of Companies has divested its holdings in NP Aerospace. The company has sold its shares in 11046896 Canada Inc to NP Aerospace CEO and shareholder, James Kempston for an undisclosed sum. PFN revealed plans to divest NP Aerospace in July 2020 as part of its strategy to focus on military and defense closer to home with its 100% owned company Pro Metal Industries. The transaction results in Kempston increasing ownership from 50% to 100% of the business.
03 Jan 22. ADDMAN Engineering (“ADDMAN”) announced that it has acquired Castheon Inc. (“Castheon” or “Company”), a leading provider of additive manufacturing technologies for mission-critical space applications. Founded in 2016 by Dr. Youping Gao, Castheon is an innovative developer of additive manufacturing processes and a leading metals additive manufacturer for demanding end markets. The Company has deep expertise in metals printing and has developed processes that promise to meaningfully expand the use of traditionally difficult to manufacture refractory metals. Castheon partners with next generation spacecraft companies to design, develop, and print complex components with quick turnaround times.
“This investment affirms ADDMAN’s strategic proposition in space. We believe that the technologies created by Dr. Gao will revolutionize the additive manufacturing industry and transform thinking around component development for the end markets that Castheon serves. Dr. Gao’s accomplishments represent the cutting-edge of additive manufacturing, especially in refractory metals applications and solutions for the space industry,” said Joe Calmese, ADDMAN CEO.
Dr. Gao added, “Castheon has made major breakthroughs in technology to print refractory metals, including demonstrated success in difficult applications such as reaction control system (“RCS”) thrusters for spacecraft customers. Castheon’s technology and know-how, combined with ADDMAN’s scale and resources, will supercharge the next chapter of Castheon’s growth. ADDMAN brings a national manufacturing and engineering footprint with over 300 employees, dozens of additive manufacturing machines and key quality certifications, and over 100 traditional subtractive machines to Castheon’s customer base.”
Kevin Wilken, Partner at AIP, commented, “The ability to efficiently produce certain refractory metals via additive manufacturing is a breakthrough for customers who depend on high temperature structural components. Castheon’s offerings, which include solutions to print Niobium and other refractory metals, have the potential to transform the way additive serves advanced industries. AIP is fully committed to support the continued growth of the combined company.” Mr. Wilken added, “We welcome Dr. Gao to the ADDMAN team and look forward to delivering innovative solutions that enable our customers’ success.”
Castheon is ADDMAN’s 3rd acquisition in 10 months.
About ADDMAN Engineering
Founded in 2020, ADDMAN Engineering, LLC is a vertically integrated provider whose capabilities span the design, manufacture, machining, post-processing, and quality processes needed to take any part from concept to production. From space applications to IndyCar racing teams, medical device manufacturers to robotic integrators, ADDMAN provides customers with value-driven engineered solutions enabling exceptional speed and value through the product life cycle, using radically innovative adaption of additive manufacturing technologies. For more information on ADDMAN, visit www.ADDMANgroup.com
About American Industrial Partners
American Industrial Partners is an operationally oriented private equity firm that makes investments in industrial businesses serving domestic and global markets. The firm has deep roots in the industrial economy and has been active in private equity investing since 1989. To date, American Industrial Partners has completed more than 100 transactions and currently has $8bn of assets under management on behalf of leading pension, endowment, and financial institutions. For more information on American Industrial Partners, visit www.americanindustrial.com (Source: PR Newswire)
04 Jan 22. Aeronautics and Senior Execs Charged with Violating Export Law. Israeli drone-maker Aeronautics and three of its senior employees were charged on Wednesday with violating the law regulating defense exports in its dealing with one of its most prominent clients.
A gag order issued by the Rishon Letzion Magistrate’s Court prevents the publication of further details.
The firm has been under investigation for the past several years. In 2018 the Justice Ministry said prosecutors intended to press charges against its employees for aggravated fraud and violations of the defense export law.
In an unusual announcement in August 2017, the Defense Ministry said that it had suspended the marketing and export license for one of the firm’s attack drones to a significant customer in a foreign country. Police later launched an investigation into the matter.
That same month it was reported that the Defense Ministry’s Security Agency opened a probe into a complaint alleging that Aeronautics representatives demonstrated the use of a kamikaze drone in Azerbaijan by attacking a manned position in Artsakh.
The company denied the claim at the time and said that any operational use of the aircraft was only carried out by the buyer of the drone. Aeronautics Defense added that it never carries out demonstrations against live targets, as was the case in this instance.
Founded in 1997 under the name NETS Integrated Avionics Systems, Aeronautics manufactures UAVs for military surveillance and defense and for the commercial sector. The company nearly collapsed in 2011, but was rescued by private equity investors Viola, Beresheet and KCPS, which today hold a combined 36 percent of its shares. (Source: UAS VISION/ Haaretz)
03 Jan 22. HENSOLDT AG: LEONARDO completes share acquisition and becomes anchor shareholder. LEONARDO completes share acquisition in HENSOLDT.
and becomes anchor shareholder. LEONARDO S.p.A. today completed the acquisition of 25.1 percent of the shares in HENSOLDT AG.
HENSOLDT now has three strong major shareholders on its side: the Italian aerospace and defence group Leonardo, the Federal Republic of Germany with 25.1 percent and the world’s leading investment company KKR with around 18 percent (via Square Lux Holding II S.à r.l.).
Thomas Müller, CEO of HENSOLDT, said: “We are delighted to welcome LEONARDO on board as a strong partner and long-term anchor shareholder. We are working together on a number of pan-European programmes in a spirit of trust, see multiple opportunities for further cooperation and share the ambition to play a decisive role in the necessary consolidation of the European defence market. Europe needs more political and industrial cooperation – with our current set-up we can make a significant contribution to a competitive European security and defence landscape and a strategically autonomous Europe.”
In March 2021, the German government acquired 25.1 percent of the shares in HENSOLDT from KKR, thus underlining the importance of HENSOLDT as a key technology partner and strategic supplier for Germany. (Source: Google/\Yahoo!)
03 Jan 22. Intevac Announces Sale of Photonics Business. Intevac, Inc. (Nasdaq: IVAC), (“Intevac” or the “Company), a leading supplier of thin-film processing systems, today announced the sale of its Photonics business (“Photonics”) to EOTECH LLC, a privately-held optical technology company (“EOTECH”). The transaction, structured as an asset sale, closed on December 30th, 2021 and is valued at up to $100m, consisting of an up-front cash payment of $70m and future earn-out payments of up to $30m.
With the completion of the sale of Photonics to EOTECH, Intevac will continue its broader strategic review process, and shift its entire focus onto the Thin-Film Equipment (“TFE”) business, serving multiple growing thin-film technology markets. This transaction bolsters Intevac’s already strong balance sheet, and well positions the Company to drive stockholder value rooted in the Company’s core HDD equipment business, and ongoing growth initiatives.
Intevac’s Photonics business has long been recognized as a leading developer and provider of advanced high-sensitivity digital sensors, cameras and systems that primarily serve the defense industry, and has provided integrated imaging systems for most U.S. military digital night vision programs, including the U.S. Army’s Integrated Visual Augmentation System (“IVAS”).
“We are extremely proud of the long history of innovation and leadership that the Photonics team has delivered over the years,” stated Wendell Blonigan, president and chief executive officer of Intevac. “Intevac Photonics, as envisioned by our late founder Norman Pond, pioneered the night vision technologies that have become the standard for most advanced digital night vision programs for the U.S. military, as well as many foreign nations. We wish to thank the entire Photonics organization for their important contributions to our nation’s defense, and we are confident that together with EOTECH, this business will continue to achieve future success providing best-in-class digital night vision technology.”
Matt Van Haaren, chief executive officer of EOTECH, added, “Over the past 30 years, Intevac Photonics has built an impressive portfolio of digital night vision technologies that set the standard for advanced military avionics platforms. We are excited to continue to build this business as it develops the next generation of digital night vision for the dismounted soldier.”
“We commenced our strategic review process this past year with the objective to achieve recognition for the significant value that resides in our businesses,” commented David S. Dury, chairman of the board of Intevac. “With the sale of the Photonics business announced today, we have completed an important milestone in our efforts to deliver increased stockholder value. We have always believed in the long-term growth potential of Photonics, however with any significant new Photonics product revenue ramp still at least a couple of years away, and the complexity of achieving maximum shareholder value from two substantially different businesses within one company, the board of directors determined that this transaction was in the best interest of maximizing stockholder value.”
The $70m upfront cash purchase price is subject to adjustments for working capital, fees, and other items, and will be reflected in the balance of total cash and investments at fiscal year-end 2021. Intevac and EOTECH have also negotiated a Transaction Service Agreement with a term of six months.
In connection with the transaction, Greenhill acted as the exclusive financial advisor to Intevac and delivered a fairness opinion to the board of directors. Wilson Sonsini Goodrich & Rosati acted as legal counsel to Intevac. For EOTECH, Houlihan Lokey acted as the exclusive financial advisor and Bodman PLC provided legal counsel.
Management will host a conference call tomorrow at 1:30 p.m. Pacific Time, Tuesday, January 4th, 2022 to discuss the transaction and to host a question and answer session. To participate in the teleconference, please call toll-free (877) 407-0989 prior to the start time, and reference meeting number 13725987. For international callers, the dial-in number is +1 (201) 389-0921. A live and archived webcast of the call will also be available on the Company’s investor relations website at https://ir.intevac.com: https://www.webcast-eqs.com/intevac20220104_en/en.
About Intevac
We are a leader in the design and development of high-productivity, thin-film processing systems. Our production-proven platforms are designed for high-volume manufacturing of substrates with precise thin film properties, such as the hard drive media, display cover panel, solar photovoltaic, and advanced semiconductor packaging markets we serve currently. For more information call 408-986-9888, or visit the Company’s website at www.intevac.com.
About EOTECH
Headquartered in Plymouth, Michigan, EOTECH® designs, manufactures and markets the original Holographic Weapon Sight (HWS), and designs and distributes Vudu® rifle optics, thermal and night vision systems, and laser devices. EOTECH’s full line of professional-grade optics is trusted by the world’s tier-one professionals to deliver unparalleled speed, accuracy, and reliability. Our exacting standards demand continued focus on product quality, not quantity, ensuring that the highest specifications are not only met, but exceeded. Every optic manufactured is treated as if it will be the one that will face a life and death situation. When there are zero margins for error, there is only one clear choice – EOTECH. For more information, visit www.eotechinc.com. (Source: BUSINESS WIRE)
03 Jan 22. L3Harris Announces Streamlining of Business Segments. L3Harris Technologies (NYSE:LHX) today announced a new alignment and organization of core businesses, moving from four to three focused segments: Integrated Mission Systems, Space and Airborne Systems and Communication Systems.
In 2019, L3Harris began a portfolio shaping process with an emphasis on high-growth, technology-differentiated businesses. The positive results of that work enabled the new, streamlined structure.
“Our customers and partners know L3Harris brings to bear cutting-edge capabilities to tackle some of our most complex national security problems,” said Christopher E. Kubasik, Vice Chair and CEO of L3Harris. “Our business segments will continue to lead market innovation in their focus areas, fueling advanced solutions for the toughest operational challenges.”
In 30 short months, L3Harris established itself as a trusted prime defense contractor for top-tier U.S. and international missions. With a focus on efficient and disruptive capability development for urgent needs – including responsive space solutions, autonomous operations, and resilient communications – the company is well-positioned to challenge antiquated defense acquisition and program management timelines.
“Our intent remains clear: Be the trusted disruptor for U.S., allied, and partner national security endeavors,” Kubasik said. “This lean approach will deliver resilient, innovative, end-to-end solutions that propel timely mission success for our customers.” (Source: BUSINESS WIRE)
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TCI International, Inc., is a wholly-owned subsidiary of SPX Corporation. TCI provides turn-key solutions for spectrum management and monitoring, direction finding, geolocation and communications intelligence to civilian, government, military and intelligence agencies as well as antennas for communications and high-power radio broadcasting. TCI is headquartered in Fremont, California, USA. For more information, visit www.tcibr.com.
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