Sponsored by TCI International Inc.
09 June 22. Senior to acquire Spencer Aerospace in £48m deal. Senior has signed a definitive agreement to acquire “substantially all” of Spencer Aerospace Manufacturing, it announced on Thursday, in a deal worth £48m.
The London-listed firm said Spencer Aerospace, based in Valencia, California, specialises in source-controlled, standard, and proprietary fluid fittings.
Established customers include major North American original equipment manufacturers (OEMs) and tier-1 suppliers, supplying “key” single-aisle and wide-body platforms.
Based on the product approvals already undertaken and in progress, Senior said it expected the company would be a “strong platform” for growth.
Spencer Aerospace was founded in 2013 by its president Steven Spencer, with the current management team set to remain following the acquisition.
The fluid fittings products engineered and manufactured by Spencer Aerospace were in “high demand” from aerospace and defence customers globally, Senior said, and were complementary to its existing advanced fluid conveyance product and system capabilities.
“We are delighted to announce this acquisition and look forward to welcoming Steven and his team to Senior,” said chief executive officer David Squires.
“Under his leadership, Spencer Aerospace has built impressive capabilities and an expanding product portfolio that addresses growth opportunities in our core markets.
“While we already have some fluid fitting expertise within Senior, our customers have been strongly encouraging us to increase our presence in this area and our combined expertise and market reach will allow us to respond decisively and rapidly grow associated revenues.”
Squires said the acquisition would “further enhance” Senior’s fluid conveyance capabilities, adding that it was an “important step” in its strategy to optimise its portfolio and maximise value for shareholders.
“Beyond the immediate synergistic growth opportunities in our aerospace markets, I am excited by the potential of opening up further medium-term opportunities in adjacent markets served by our aerospace and flexonics divisions.”
Senior agreed to pay £48m for Spencer Aerospace, comprising an initial consideration of £24m in cash at completion, and a further £24m 12 months after completion.
An additional £32m would potentially be payable in milestone amounts, depending on the financial performance of Spencer Aerospace, during the period between completion of the acquisition and 31 December 2026.
Assuming full consideration, the group said it expected to benefit from future tax relief of around £10m.
The acquisition was expected to generate a return on invested capital in excess of Senior’s cost of capital in the third full year following the acquisition.
For the year ending 31 December 2022, the company expected to generate revenue of at least $12m, and earnings before interest, tax, depreciation and amortisation of at least $1m.
Senior said that, given Spencer’s “healthy” order pipeline and expected revenue acceleration, it was expected to deliver “strong profitable growth” over the coming years.
The final earnout milestone would become payable on Spencer Aerospace’s annual revenue reaching $40m, representing revenue growth to more than 300% of expected 2022 revenue.
Senior said the transaction was being funded using its existing borrowing facilities, and was expected to be accretive to adjusted earnings per share in the first full year of ownership.
The acquisition was expected to complete in the third quarter of 2022, subject to customary closing conditions. At 0829 BST, shares in Senior were up 1.1% at 129.2p. (Source: Google/https://www.sharecast.com/)
08 June 22. Graham Corporation Reports Fiscal 2022 Fourth Quarter and Full Year Results.
- Revenue of $39.7m in the quarter, up 55% over prior-year period; fiscal 2022 revenue increased 26% to $122.8m
- Defense industry revenue in quarter of $18.7m was 47% of total and was $62.2m, or 51% of total, for the fiscal year demonstrating shift in business mix
- Yearend backlog was $256.5m including $195m, or 76%, related to the defense industry
- Barber-Nichols acquisition contributed 62% of orders in quarter, or $14.6m of $23.7m total and continued to outperform expectations
- Recorded fourth quarter net loss of $1.4m and $0.4m in adjusted EBITDA*; fiscal 2022 net loss of $8.8m
- Recently shipped on schedule first article U.S. Navy project; delivery advanced efforts to reduce cost overruns
- Expect fiscal 2023 revenue to grow to $135m to $150m, up 16% at mid-point over fiscal 2022; expect adjusted EBITDA* to increase to $6.5m to $9.5m
Graham Corporation (NYSE: GHM), a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy and process industries, today reported financial results for its fourth quarter and full fiscal year ended March 31, 2022, (“fiscal 2022”). Financial results include those of Barber-Nichols, LLC (“BN” or “the acquisition”) from the date it was acquired on June 1, 2021.
Daniel J. Thoren, President and CEO, commented, “Fiscal 2022 was a challenging year, but we made good progress in the quarter and are validating our strategy to increase margins overall and in markets with strong growth drivers such as defense and space. Importantly, we are improving processes and have added talent to mitigate the challenges in our Batavia, NY defense operations. In addition, our fluid and power business is winning new contracts that provide opportunity for more growth and long-term production, and our aftermarket sales continue to be strong, which is a leading indicator for future capital investment by our customers.
“Notably, we recently shipped a first article condenser for a critical navy submarine application and are on schedule to ship additional critical U.S. Navy projects throughout fiscal 2023. As we make further progress on our production schedule and grow our welding staff, we will be able to reduce our reliance on contract welders. This is expected to help with margin improvement over the coming quarters.”
Fiscal 2023 Outlook
Mr. Thoren concluded, “The future of Graham is very positive. At the heart of the Company, we are engineering experts in complex fluid, power, heat transfer and vacuum systems. Expanding our focus to more growth-oriented markets of defense, space and alternative energy, augments our legacy energy and process businesses where we have a large global installed base. As we look out over the next five years, a new, reenergized Graham has the platform to grow in fluid and power technologies and plans to build a better heat transfer and vacuum technologies business. We believe that over time this strategy will create a stronger enterprise with materially expanded adjusted EBITDA margins in the low to mid-teens with high single-digit top-line growth as we continually improve.”
Revenue in fiscal 2023 is expected to be $135m to $150m with gross margins of approximately 16% to 17% and selling, general and administrative (“SG&A”) expenses to be approximately 15% to 16% of sales. The expected effective tax rate for fiscal 2023 is approximately 21% to 22%. Adjusted EBITDA for fiscal 2023 is expected to be approximately $6.5m to $9.5m, yielding an adjusted EBITDA margin* of approximately 5% to 6% compared with a $5.0m loss in fiscal 2022. The Company expects the first quarter of fiscal 2023 to remain challenging and for results to improve as the year progresses.
Capital expenditures for fiscal 2023 are expected to be $4.5m to $5.5m. Separately today, the Company announced its new strategic plan outlining its operating and financial goals. (Source: BUSINESS WIRE)
08 June 22. Chemring” or “the Group” or “the Company”) Interim Results.
HHH1 2022 performance was in line with the Board’s expectations with strong performance in both segments
Roke continued the recent trend of double digit growth in orders, revenue and operating profit in a positive market
Sensors & Information underlying operating margin increased from 20.6% to 21.5% driven by the growth in the higher margin Roke business
Countermeasures & Energetics underlying operating margin increased from 15.6% to 16.4% due to improved operational execution across the segment
Continued reduction in net debt with strong operating cash generation and cash conversion of 101% (H1 2021: 96%). Net debt to underlying EBITDA of 0.23 times (H1 2021: 0.5 times)
Continued scheduled capital expenditure ahead of depreciation. Investment in the Group’s manufacturing infrastructure continues to be a key enabler to deliver improved safety and operational excellence. Total recordable injury frequency (“TRIF”) rate was up slightly at 0.76 (H1 2021: 0.66)
Proposed interim dividend increased by 19% to 1.9p, as we progress towards our medium-term target of dividend cover of c.2.5 times underlying EPS
The Board’s expectations for 2022 are unchanged. Approximately 85% (H1 2021: 92%) of expected H2 revenue is in the order book as at 30 April 2022 or has been delivered to date. Utility inflation, discretionary investment in Roke in H2 and adverse US order timing are expected to offset current FX tailwinds and an expected improved H1 weighting in 2022
08 June 22. Chemring confident on growth prospects. Defence contractor expects to capitalise on increased spending by US and European governments.
- Strong cash conversion allows company to reduce debt burden
- Outlook tempered by procurement delays and supply chain upheaval
The world is a changed place since Chemring (CHG) presented its full-year results in mid-December.
Russia’s invasion of Ukraine has highlighted the need for countries to “re-equip and modernise their defence capabilities”, Chemring’s chief executive Michael Ord said.
So far, a total of $130bn (£104bn) of defence spending increases have been announced by seven European countries. However, as the delays the US government has experienced in passing its record defence budget show, these can take time to feed through to orders being placed in the market.
Chemring expects strong growth in defence spending over the next decade and believes it can benefit from “elements of the ensuing demand”.
Growth in the interim remains steady, with both its sensors & information (S&I) and the countermeasures & energetics (C&E) arms reporting improved sales and margins over the past six months.
S&I revenue grew by 21 per cent and underlying operating profit by 27 per cent, with a widening of its margin attributed to its technology business, Roke. It provides cyber defence and artificial intelligence services and reported a “double-digit” increase in orders.
The C&E business reported growth in sales of 5 per cent and underlying operating profit of 10 per cent.
Strong cash conversion has allowed Chemring to continue reducing its borrowings – net debt fell to £18.5mn at the end of the six-month period, down from £38.7mn a year ago or £26.6mn at its October year-end.
Despite this, the shares fell by 7 per cent as the company reported a more muted outlook than investors were perhaps expecting. It maintained full-year guidance, with operating expenses set to increase as it invests more in Roke’s US operations and its academy to train new recruits – the unit now employs 700 of the company’s 2,300 staff, up from 400 at the end of 2018. Ord also highlighted procurement delays, supply chain interruptions, increasing utility costs and labour shortages as headwinds.
Although the company’s shares have made gains since the start of the year, the 15 per cent uplift in its valuation lags well behind the 60 per cent re-rating achieved by some of its peers, Berenberg analysts said in a note.
“We think this underperformance is unjustified and offers an attractive entry point into a high quality, resilient defensive stock,” it said.
The shares currently trade at 18 times the consensus earnings per share forecast of 18.4p, which is a little higher than their five-year average but then the growth prospects for this market look considerably better than they did at the beginning of this year. We maintain our buy call.
Last IC View: Buy, 287p, 14 Dec 2021. (Source: Investors Chronicle)
07 June 22. Orders mount at Gooch & Housego. Optical technology specialist is ramping up production, but faces significant cost headwinds
- Revenue hit by Covid disruption
- Order book at record level
The past six months have been a mixed bag for Gooch & Housego (GHH), an optical technology specialist which makes everything from precision lasers to periscopes.
On the one hand, revenue has fallen by 8 per cent. This is largely due to a poor performance by the group’s aerospace and defence (A&D) division, which saw sales drop by 29 per cent year on year. At the same time, however, statutory profits are up, dividends are on the rise, and the company has secured a record half-year order book of £120mn.
Gooch & Housego is hopeful that problems within its A&D division are only temporary. The impact of Covid isolation on customers’ ability to accept product shipments was “significant and unavoidable”, management said, and there were a number of customer-induced delays.
Now, however, commercial aerospace seems to be recovering, and the war in Ukraine has boosted demand for defence products, such as optical sighting systems. Gooch & Housego has recently received a £4mn order from the UK’s Ministry of Defence to help improve its tanks.
Elsewhere in the company, demand is robust. Medical lasers continue to benefit from the return of elective surgery, while the company’s biggest customer base – industrials – is still buoyant, fuelled by the booming semiconductor market.
That’s not to say there aren’t challenges. Covid-related absences have slowed down production at the company’s US and UK sites, and revenue has been hit by supply chain disruption. The tight labour market is also causing problems, particularly in California, with wage inflation limiting the rate at which the company can hire new staff. Employment pressures have also impacted suppliers, which are looking to pass on extra costs to Gooch & Housego.
While management is confident that it can itself pass on costs to clients, this inflationary environment doesn’t sit comfortably with a company that has seen its operating profit margin shrink from 9.3 per cent in 2016 to 2.9 per cent in 2021.
That said, the company has spent a lot of money on restructuring in recent years and is striving to rebalance its portfolio so it is not too dependent on any one industry. These improvements – combined with its healthy order book – provide grounds for optimism. With a forward PE ratio of 20, it’s also cheaper than it has been for a while. A cautious buy. Last IC View: Buy, 1,100p, 30 Nov 2021. (Source: Investors Chronicle)
06 June 22. HII head says large acquisitions unlikely for now. US shipbuilder HII, which purchased engineering firm Alion Science and Technology for USD1.65 bn in 2021, is unlikely to make another large acquisition in the near future, according to Christopher Kastner, HII president and CEO.
While HII, formerly Huntington Ingalls Industries, will continue to evaluate acquisition opportunities, “I don’t see anything as significant as Alion over the next couple of years”, Kastner said on 2 June. “It would be kind of a niche capability” that HII would consider.
While HII expects to generate plenty of cash, it wants to use much of that money to increase its dividend and reduce its debt, Kastner told the Bernstein 38th Annual Strategic Decisions Conference.
Kastner, who became CEO in March, said the Alion acquisition has benefitted both companies. It has enabled HII to compete for technology-focused contracts it earlier did not have the expertise to pursue. Becoming part of a larger enterprise has given Alion the resources it needs to compete for more contracts. (Source: Janes)
06 June 22. SAIC Announces First Quarter of Fiscal Year 2023 Results.
- Revenues increase to $2.0bn; 6% total revenue growth, approximately 4% growth excluding acquired revenues
- Diluted earnings per share: $1.29; Adjusted diluted earnings per share(1): $1.88
- Company increases revenue and adjusted diluted EPS(1) guidance for fiscal year 2023
- Board authorizes share repurchase program up to 8.8m shares, representing 16% of shares outstanding
Science Applications International Corporation (NYSE: SAIC), a premier Fortune 500® technology integrator driving our nation’s digital transformation across the defense, space, civilian, and intelligence markets, today announced results for the first quarter ended April 29, 2022.
“Our results over the past several quarters speak to the progress we have made in executing our strategy to drive profitable, sustained growth,” said SAIC CEO Nazzic Keene. “While we face some modest top line pressure in the near-term, the momentum we see in our business development efforts gives me confidence in our ability to continue to profitably grow the business. In the meantime, we will remain focused on strong execution, disciplined capital allocation, and building upon our strong culture.”
First Quarter Summary Results
Revenues for the quarter increased $118m compared to the same period in the prior year primarily due to ramp up on new and existing contracts and the acquisition of Halfaker (approximately $42m), partially offset by contract completions. Adjusting for the impact of acquired revenues and divested revenues, revenues grew 3.9% primarily due to ramp up on new and existing contracts.
Operating income as a percentage of revenues decreased from the comparable prior year period primarily due to higher indirect costs in the current year period and higher benefit from net favorable settlement of prior indirect rate years in the prior year period, partially offset by improved profitability across our contract portfolio.
Adjusted EBITDA(1) as a percentage of revenues for the quarter decreased to 8.7% from 9.8% for the same period in the prior year primarily due to higher indirect costs in the current year period and higher benefit from net favorable settlement of prior indirect rate years in the prior year period, partially offset by improved profitability across our contract portfolio.
Diluted earnings per share for the quarter was $1.29 compared to $1.38 in the prior year quarter. Adjusted diluted earnings per share(1) for the quarter was $1.88 compared to $1.94 in the prior year quarter. The weighted-average diluted shares outstanding during the quarter decreased to 56.6m from 58.7m during the prior year quarter.
Cash Generation and Capital Deployment
Cash flows provided by operating activities for the first quarter were $118m, a decrease of $71m compared to the prior year quarter, primarily due to lower net earnings, cash payments during the quarter associated with certain change in control provisions related to the acquisition of Halfaker, and timing of customer collections and vendor disbursements.
Free cash flow(1) for the first quarter decreased by $51m from the prior year quarter to $113m, primarily due to lower net earnings, cash payments during the quarter associated with certain change in control provisions related to the acquisition of Halfaker, and timing of customer collections and vendor disbursements.
During the quarter, SAIC deployed $95m of capital, consisting of $68m of plan share repurchases, $22m in cash dividends, and $5m of capital expenditures. In addition, SAIC made $59m of mandatory debt repayment in the first quarter.
(1) Non-GAAP measure, see Schedule 5 for information about this measure.
Quarterly Dividend Declared
Subsequent to the end of the quarter, the Company’s Board of Directors declared a cash dividend of $0.37 per share of the Company’s common stock payable on July 29, 2022 to stockholders of record on July 15, 2022. SAIC intends to continue paying dividends on a quarterly basis, although the declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements and other factors.
Share Repurchase Authorization Increased
SAIC today announced that its Board of Directors has authorized an increase to its existing stock repurchase authorization of the Company’s common stock under an existing stock repurchase program. The current authorization increases the repurchase program by 8.0 m shares in order to make available for repurchase an aggregate of approximately 8.8m shares.
Backlog and Contract Awards
Net bookings for the quarter were approximately $2.0bn, which reflects a book-to-bill ratio of 1.0 and a trailing twelve months book-to-bill ratio of 1.0. SAIC’s estimated backlog at the end of the quarter was approximately $24.1bn. Of the total backlog amount, approximately $3.2bn was funded.
Notable Recompete Awards:
Air Force Space and Missile Systems Center: SAIC was awarded a $390m task order by the General Services Administration on behalf of the U.S. Space Force / Space Systems Command to continue providing systems engineering and integration services to help modernize the nation’s Global Positioning System (GPS) program.
U.S. Space and Intelligence Community: SAIC was awarded $337m of contract awards by space and intelligence community organizations. Most of these contracts serve customers in the intelligence community and classified space domain that rely on SAIC for highly-specialized expertise in digital engineering as well as cloud, artificial intelligence, cybersecurity, technology integration, engineering, IT modernization and mission operations.
03 June 22. After Rheinmetall bid for Oto Melara, Italian government awaits Fincantieri’s move.
A decision on the sale of a stake in Italian cannon maker Oto Melara will not be made before September in order to give Italy’s Fincantieri time to mull an offer, a government official has told Defense News.
Owned by Italy’s state-controlled defense giant Leonardo, Oto Melara has been the subject of takeover talks since last year, as it no longer fits with Leonardo’s focus on electronics, cyber and aviation.
At the end of May, Germany’s Rheinmetall made a non-binding offer to buy 49 percent of the firm for 190m to 210m euros ($204m-$226m), with the offer of involving Oto Melara in work on its Lynx fighting vehicle should Italy choose to buy it.
Rheinmetall has not had access to the Oto Melara data room so its offer could yet change.
Leonardo has previously held talks about a full sale of the firm to KNDS – the alliance of Germany’s Krauss-Maffei Wegmann and France’s Nexter.
Leonardo CEO Alessandro Profumo has called a deal KNDS the “ideal” solution for Oto Melara, although the Italian government will have a say in the choice.
Italian state-controlled shipyard Fincantieri has also expressed an interest in the firm, which supplies naval as well as land cannons.
“We will wait for September for a Fincantieri offer, we want to have the entire picture,” the government source said. A new Fincantieri CEO, Pierroberto Folgiero, was appointed this spring following the government’s decision to substitute longtime CEO Giuseppe Bono.
The source did not rule out an acceptance of the Rheinmetall offer to take 49 percent of Oto Melara with Leonardo’s 51 percent remaining stake being sold to Fincantieri, meaning control of the firm would remain in Italy.
That is a solution favored by Italian union UILM, which is pushing the Italian state to retain a controlling interest in the firm.
In a statement on June 1 after news broke of the Rheinmetall offer UILM said, “We will not accept proposals which do not involve Italian governance.” (Source: Defense News)
03 June 22. Rafael Advanced Defense Systems Ltd. has completed the acquisition of PVP Advanced EO Systems, Inc. (PVP AEO) through its U.S. subsidiary Rafael USA, Inc. The acquisition was executed under a stock purchase agreement (SPA) transferring 100% of stock to Rafael USA, Inc. The transaction was approved under CFIUS review authorization, governed by a national security agreement (NSA).
Prior to the acquisition, PVP AEO was a privately-owned, California-based company, specializing in the development, manufacturing and sustainment of world-class electro-optic (EO) systems for air, land, sea and critical homeland security applications. The company was founded in 1997 and is located in Tustin, CA. Recent programs include Integrated Fixed Towers (IFT) and Mobile Video Surveillance Systems (MVSS) for the Customs and Border Patrol on the southern border. PVP AEO is active in North and South America, Asia and the Middle East.
“This acquisition is part of RAFAEL’s continued strategic investments, with the purpose of transferring cutting-edge state-of-the-art technologies, products and systems into the United States in support of U.S. national security. Until recently most of RAFAEL’s operations in the U.S. were in partnership with U.S. Tier-1 prime contractors, while the majority of workshare was manufactured in Israel. PVP AEO will complement and enhance engineering and manufacturing capabilities stateside, while strengthening our U.S. supply chain to better support our prime contractors and U.S. warfighters.”
Maj. Gen. (ret.) Yoav Har Even, President and CEO, Rafael Advanced Defense Systems
“PVP AEO is committed to continue supporting its existing and emerging customers. This acquisition provides the opportunity to enhance and create new products and capabilities. For PVP AEO employees and families, this venture means stability, growth and well-being. It will create more jobs for PVP AEO, as well as for its nation-wide supply chain. PVP AEO retains its identity, brand, products, technologies, services, personnel, culture, management and charitable community giving.” Bruce Ferguson, President and CEO, PVP AEO
02 June 22. Sony Space Communications Corporation formed. Sony Group Corporation (“Sony Group”) has announced that the company’s wholly owned subsidiary, Sony Corporation of America (“SCA”), has formed a new company — Sony Space Communications Corporation (“SSC”) — to conduct space optical communications.
“Currently there are approximately 12,000 satellites in space, and the number is expected to increase in the future. The amount of data used in orbit is also increasing year by year, but the amount of available radio waves is limited,” said Kyohei Iwamoto, President, Sony Space Communications Corporation. “Low Earth Orbit (LEO) satellites need to communicate with the ground, so a large number of communications facilities are required for real-time communications, which is problematic because these satellites must pass directly over a ground station to communicate with it. Additionally, the need for frequency licenses for radio waves and the requirement for lower power consumption of communication equipment needed by smaller satellites, like micro satellites, are also issues to be addressed.”
To solve these problems, SSC plans to develop small, optical communications devices to provide related services to connect smallsats in LEO via a laser beam. SSC plans to offer this optical communications equipment as a service to companies working on satellite development.
By using optical communications, SSC aims to realize high-speed communications with small devices, which are physically difficult to achieve with conventional radio communications because conventional communications require large antenna and high power output. In addition, by constructing an optical communications network not only between satellites and the ground, but also between satellites in orbit, SSC aims to enable real-time communications from anywhere on the ground to any satellite in space. Optical communications are also easier to implement than traditional radio frequency communications as they do not require the certain types of licenses that radio communication needs.
By providing easy-to-use inter-satellite communications capabilities, SSC aims to increase the amount of communications in space and realize an Internet communications network covering the earth, space, and applications such as real-time services.
Sony Space Communications Corporation
Sony Space Communications Corporation
2207 Bridgepointe Pkwy, San Mateo, CA 94404
Kyohei Iwamoto, President
Start of Business:
June 1, 2022
Sony Corporation of America 100％
Sony Group has been conducting research and development of optical communications systems at Sony Computer Science Laboratories, Inc. to enable high-speed data communications over long distances in a form that can be mounted on micro satellites. By applying the optical disc technology that Sony Group has cultivated over many years in the development and production of CD players and other products, it aims to realize optical communications devices that are ultra-compact, lightweight, mass producible, and can withstand harsh environments such as space. In 2020, SOLISS (Small Optical Link for International Space Station) was installed in the Japanese Experiment Module “Kibo” of the International Space Station (ISS) in collaboration with the Japan Aerospace Exploration Agency (JAXA). It established a bidirectional laser communications link with a space optical communication ground station of the Japanese National Institute of Information and Communications Technology (NICT), and successfully transmitted high-definition image data via Ethernet protocols. In 2021, this experimental device successfully established optical downlinks from space to a commercial optical ground station of Kongsberg Satellite Services in Greece. In 2022, in collaboration with JAXA, an experiment on complete data file transfer in a simulated error-prone communications environment, which will be the technological basis for Internet services through stratospheric and low-Earth orbit optical communications, was successfully conducted. SSC aims to promote the use of optical communications in space and to contribute to the improvement of convenience in peoples’ lives, including through the expansion of socioeconomic activities. (Source: Satnews)
06 June 22. LMT Products and ADG Mobility now part of OTT Group. Consolidation in the South African defence industry has seen OTT Technologies, LMT Products and ADG Mobility come together to create the OTT Group that is now able to offer a significantly broader range of products.
OTT Technologies acquired LMT Products in July 2020 after it had been placed in business rescue following Denel’s loss of control of the company, and now ADG Mobility, a relatively new player in the armoured vehicle field, is also part of the OTT Group.
Stefan Booysen, CEO of OTT Technologies, is CEO of the OTT Group, while LMT Products CEO and CEO of ADG Mobility, Dr Stefan Nell, is also now OTT Group Managing Director. Retired Brigadier General Chris Gildenhuys, Manager: Business Development at OTT Technologies is also now Head of Business Development at the OTT Group. Together, they bring decades worth of experience together in the armoured vehicle industry.
The OTT Group will be present at the Africa Aerospace and Defence exhibition in Pretoria in September when it will launch new products and further showcase the Group to local and international customers.
“We will continue striving to provide our extended network of clientele, associates and partners with quality products and services as we value your cooperation, support and/or business,” Gildenhuys stated when announcing the establishment of the OTT Group last week.
Each company brings a significant number of designs and experience to the table, making the OTT Group one of the largest armoured vehicle manufacturers in South Africa.
LMT Products, a former 100% owned subsidiary of LMT Holdings, designed and manufactured a variety of protected vehicle products, ranging from protected cabs for Mercedes Benz vehicles to armoured personnel carriers. It exported large numbers of armoured vehicles, mainly to the Middle East, including the clean-sheet LM13 Multipurpose Combat Vehicle, designed to fit into a C-130 transport, and the LM8 Special Operations Vehicle based on a Ford chassis. LMT also developed the LM14 low cost armoured personnel carrier, a clean sheet design able to carry 10 people, and the LM13-derived LM16 high mobility armoured personnel carrier that can accommodate up to 11 people. As part of its relationship with the UAE’s International Armoured Group (IAG), LMT sold the JAWS APC as the LM5 in a couple of African countries. The company has also developed the Meerkat retractable weapons station for light armoured vehicles.
LMT Products used to be the trading company of LMT Holdings and went into voluntary business rescue in September 2019. Under the OTT Group, LMT will continue to specialise in the design and manufacture of armoured vehicles with protection against ballistic, landmine and improvised explosive devices (IEDs). Its design capabilities provide for the integration of protection technologies into armoured vehicles with, amongst others, flat or semi-flat floor landmine protection.
LMT designed and qualified the flat floor landmine protection for the South African Army’s new Badger infantry fighting vehicle (IFV) being developed by Denel Land Systems.
OTT Technologies started out maintaining and upgrading military vehicles like the Ratel, Samil and Mamba, but moved into manufacturing its own Puma range, which has seen export success and has been proven in combat. There are two main versions of the Puma, the M26 and larger M36. OTT also developed the Hunter special forces vehicle on the basis of the Samil-20 light truck. OTT Technologies lists its new-build mine protected vehicle range as comprising the M26, M36 and LM13. Other products include the Bulldog M34 security vehicle, a manual turret, MAN truck bodies, security/cash in transit vehicles and remanufactured Casspirs, Ratels and Samils.
OTT, established in 1980, has supplied hundreds of specialised and mine protected vehicles to UN-sanctioned peacekeeping missions and other users, and has a long-term agreement to continue to doing so.
ADG Mobility was formed by former LMT employees some five years ago to focus only on vehicle development and in-country production for international clients, with specific expertise in landmine, ballistic and IED survivability, military off-road mobility, as well as the capability of testing and evaluating its own comprehensive automotive design, development, and prototype capabilities. One of its first projects was the development of the Wahash 8×8 armoured vehicle for the UAE’ Calidus.
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.