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23 June 22. Consultation launched on proposed acquisition of Ultra Electronics Holdings plc by Cobham Ultra Acquisitions Limited. A consultation on the proposed acquisition of Ultra Electronics Holdings plc, a UK defence company, by Cobham Ultra Acquisitions Limited has been launched today.
A consultation on steps to address the national security concerns raised by the proposed acquisition of Ultra Electronics Holdings plc, a UK defence company, by Cobham Ultra Acquisitions Limited has been launched by the government today (23 June 2022).
Cobham Ultra Acquisitions Limited is a defence, aerospace and communications company that was acquired by US private equity firm Advent International Ltd (Advent) in January 2020.
The Business Secretary is minded to accept undertakings offered by Cobham Ultra Acquisitions Limited to address the concerns.
This decision follows advice from the Ministry of Defence.
The proposed undertakings are now out for public consultation until midnight at the end of 3 July 2022, in accordance with the process set out in the Enterprise Act 2002.
No decision will be taken by the Business Secretary until the consultation has concluded and the representations have been carefully considered.
The full text of the proposed undertakings can be found on GOV.UK. In summary they would deliver:
- SecureCos: creating two new ‘SecureCos’, UK legal entities which encompass the UK Ultra facilities that deliver the sensitive capabilities to HM Government.
- Board Representation: placing an HM Government appointed non-executive director on the Board of each SecureCo to protect UK national security interests and provide oversight of any disinvestment or divestment of sensitive capability.
- Articles of Association: giving HM Government the right to approve the Articles of Association of each SecureCo and draft their strategic objectives which would transfer to any future owner, locking that protection in. Any changes would be subject to the HM Government Director’s agreement.
- Step-In Rights: giving HM Government strong step-in rights (similar to a “special share”), enabling transfer of ownership of the SecureCos on national security grounds, either to a third- party or the Government.
- Access to Intellectual Property: giving HM Government the power to access Intellectual Property and/or to transfer knowledge or training necessary for HMG to exercise its step-in rights effectively.
- ITAR Protections: requiring Advent to institute an HM Government-approved control plan to prevent International Traffic in Arms Regulations controls applying to ITAR-free products designed and manufactured by Ultra.
This decision on the national security considerations is separate to any discussions on the economic implications of the proposed merger.
The Business Secretary’s decision is made in a quasi-judicial capacity, which means that he must act, and be seen to act, in a scrupulously fair and impartial manner. (Source: https://www.gov.uk/)
22 June 22. TOP 100: Inside L3Harris’ plan to disrupt the defense market.
Company No. 10 on our 2022 Top 100 rankings is implementing a strategy it says skews a ‘business as usual’ approach in favor of doing things differently. Since opening for business almost three years ago, L3Harris Technologies’ message to the defense market has essentially been that “business as usual” would not cut it in tomorrow’s competitive environment or even today’s.
Just look at all the ways L3Harris has talked about itself as the industry’s “Nontraditional Sixth Prime” — a tagline honing in on both its size compared to the five largest U.S. defense hardware companies and how the company wants to do things differently.
Two announcements out of L3Harris this year further illustrate that point: a partnership with venture investment firm Shield Capital to work with and invest in promising startup technology firms, and the official unveiling of an Agile Development Group to fast-track new systems.
The company is ranked at No. 10 on the 2022 Washington Technology Top 100 with over $4bn in prime contracts.
In speaking with L3Harris executive Sean Stackley about what the big idea is behind those moves, he pointed to a second identity the company is touting — the “Trusted Disruptor” for the U.S. military and allies in the realm of technological adoption and advancement.
Acting as that “Trusted Disruptor” means in some cases looking at the problems industry and companies alike face with a clean sheet of paper to begin with.
“You have to embrace things like digital engineering, open systems architecture,” said Stackley, president of the integrated mission systems segment.
“Open systems is not just a technical framework, it’s also a business relationship with the customer,” added the former assistant navy secretary for research, development and acquisition.
Systems development is certainly a joint effort between companies such as L3Harris and their Defense Department customer, but businesses also must be working on the next big thing.
L3Harris spends roughly 4% of its annual revenue on independent research-and-development projects, Stackley told me. The ADG entity is at around $1bn in sales but has dotted lines to each of the company’s businesses, he added.
Both the Shield partnership and Agile Development Group have key technology areas of priority, but inevitably those will expand to other areas and overlap between those initiatives as Stackley put it.
Stackley said the L3Harris-Shield collaboration’s initial four key areas are cybersecurity, space, artificial intelligence and autonomy. That partnership’s emphasis is on dual-use technologies, or those that are proven in commercial markets and can be scaled for defense programs.
Even with all the talk and advancement in AI over recent years, Stackley described that tech capability as “an area where I think we’re all growing: we being the defense industry.”
“It’s a bit of a greenfield, but it’s one that the nation needs to quickly advance on to be able to deal with frankly the China threat,” Stackley said.
Stackley called out the ADG team’s priorities as including advanced weapons systems both kinetic and non-kinetic, digital aperture technology, autonomy and unmanned for all potential conflict domains.
Autonomy and unmanned is a clear area of overlap between L3Harris’ work with Shield to find startup tech firms in that field and what ADG is working on in AI.
Stackley said the eventual goal is not just autonomous vessels, but the ability of those platforms to carry out a mission all by themselves.
The ambition he described can be found in the Navy’s ongoing work to develop a concept-of-operations for unmanned surface vessels, which the branch wants to have a wide range of capabilities including sustaining itself at sea.
“But that’s not why you have unmanned surface vessels, it’s the mission that it needs to be able to perform while sustaining itself,” Stackley said.
L3Harris believes part of the answer in making those platforms work essentially all by themselves can come from ADG’s work on open systems architecture and digital engineering, both of which indicate the desire to swap augmenting technologies in-and-out of a vessel as needed.
For the amount of time L3Harris talks about being the “Trusted Disruptor,” it also sure sounds like the company is putting some faith and trust in others to disrupt itself.
“If the Defense Department and the defense industry continues with business as usual, going after the challenges that China is posing to national security, we’re going to stop talking about them as being a near-peer.
“We’re going to wish that we’re a near-peer, so we’ve got to pick up the pace, and that requires an approach towards these problems (that is) a disruptive approach.” (Source: washingtontechnology.com)
22 June 22. Ukraine lessons helped drive acquisition of RADA, Leonardo DRS chief says. The planned acquisition of Israeli firm RADA Electronics Industries by Leonardo DRS is driven in part by lessons learned from the war in Ukraine, according to the head of the Arlington, Virginia-based company. In an interview with Defense News, Leonardo DRS Chairman and Chief Executive Officer William Lynn said adding RADA’s advanced radar capabilities to its portfolio will improve the company’s ability to provide force protection capabilities to military customers and complement its integration capabilities.
And the war in Ukraine shows the increasing importance of force protection measures as the U.S. prepares for its next conflict. Ukrainian troops have been devastatingly effective in ambushing Russian armored vehicles with shoulder-launched munitions, and Lynn said the combined company’s capabilities could help the U.S. defend against similar attacks in a future war.
He pointed to the Trophy Active Protection System the U.S. Army uses on its M1 Abrams tanks, which Leonardo DRS developed in partnership with Rafael Advanced Defense Systems, and the Iron Fist systems that are now being tested on the Bradley Infantry Fighting Vehicle and use RADA radars, as an example of what the company could provide.
“When you combine RADA and DRS, you’re going to cover both of the major active protection systems we’re going to be able to provide to U.S. and European militaries, either system depending on what they need in terms of the capabilities of the vehicle,” Lynn said. “The Ukraine conflict has highlighted those force protection needs, which is one of the central strategic reasons for this merger.”
The purchase strengthens the combined company’s force protection and counter-drone capabilities and boosts its ability to compete for future programs, he said.
The companies announced the deal Tuesday. Leonardo DRS, the U.S subsidiary of the Italian defense firm Leonardo SpA, is a mid-tier defense electronics firm that primarily serves the U.S. military. RADA provides software-defined tactical radars for the U.S. and Israel militaries as well as a handful of European countries.
RADA will become an Israeli subsidiary of Leonardo DRS when the deal closes in the fourth quarter. The combined company will keep the Leonardo DRS name. RADA will operate as a business unit within DRS’ advanced sensing segment.
Under the terms of the deal, Leonardo DRS will acquire all the share capital in RADA, in exchange for about 19.5% equity ownership to RADA shareholders. Leonardo DRS will assume RADA’s stock exchange listing, and is expected to trade on NASDAQ and the Tel Aviv Stock Exchange under the symbol “DRS.”
Lynn said returning Leonardo DRS to public trading will give it more financial stability and the flexibility to raise funds for further acquisitions. Predecessor DRS was listed until its 2009 acquisition by the Italian company that would become Leonardo.
Having RADA’s radar capabilities in house will be an advantage as the U.S. military develops its next generation of force protection programs, which could entail non-kinetic weapons such as microwaves and lasers, and consolidated counter-drone systems, he said.
Further into the future, Lynn sees the military increasingly shifting toward systems that fuse sensors with communications capabilities, so battlefield commanders have a single integrated system that provides them data. When this happens, he said, it will be important to have radar as a fully established part of Leonardo DRS’s portfolio, not something it has recently brought on board.
Lessons from Ukraine
Russia’s invasion of Ukraine and its military’s vulnerability to relatively cheap drones has underscored the importance of force protection, Lynn said, adding that the U.S. military could face similar threats in a future war. That includes short range air defenses such as the M-SHORAD program Combining RADA’s radar with Leonardo’s suite of capabilities would make providing such systems much easier, he said.
Bringing radar systems in-house will also bolster DRS’ ability to provide electronic warfare capabilities, Lynn said, which has also been a vital capability in the Ukraine war.
Lynn said Leonardo DRS is not now directly selling its systems to Ukraine, but it has sold targeting systems for armored vehicles to Germany and Sweden that those nations could provide to Ukraine.
Leonardo DRS and RADA have worked together several times over the years, most notably on the Army’s M-SHORAD, or Maneuver Short Range Air Defense program. Lynn said that familiarity will ease the merging of the two companies.
“When you merge two companies together, you worry about the cultural fit. If you have to strangers, that’s a lot more risk,” Lynn said. “Knowing each other as well as we do, we’re quite confident that we’re going to work well together.”
And he does not expect any issues to emerge in the regulatory process that could disrupt the deal.
RADA chief executive Dov Sella said in the Tuesday that the combination of the two tech-focused defense companies, with both an international presence and involvement in key U.S. defense programs, will benefit both firms’ shareholders and increase RADA’s competitiveness.
“The transaction represents the first time a major U.S.-based defense company backed by a global defense prime has acquired a significant Israeli defense technology company,” Sella said. “This unique transaction will strengthen the Israeli defense industry and set trends and direction for the future. (Source: Defense News)
23 June 22. IAI looks to expand in Australia. While the execution of the cooperation agreement between Israeli Aerospace Industries (IAI) and NIOA’s Australian Missile Corporation (AMC) reportedly remains on hold, the Israeli company is nonetheless expanding its local operation.
According to Oded Sheshinski, managing director of IAI Australia, the recent general elections and revisions in the Australian defence budget have ‘delayed the implementation of the cooperation agreement’ signed with the AMC in June 2021.
According to the agreement, Israeli Aerospace Industries (IAI) confirmed its interest in cooperating with NIOA’s AMC. In a statement after the signing of the agreement, both companies said they believe that their capabilities are ‘synergetic’ and the joint effort will provide ‘leading innovative local solutions’ for the benefit of Australian industries.
“As a Guided Weapons and Explosive Ordnance (GWEO) enterprise panel partner, the AMC is working with Government, Defence, and industry as the enterprise transitions to work program delivery. The AMC collaboration model is well placed to support Defence in developing its plans,” Lee Goddard, CEO of the Australian Missile Corporation, said.
“Since May last year we have linked up with more than 320 leading defence, research and aerospace partners who are at the cutting edge of world-leading systems. Our focus and commitment remain clear: to work collaboratively with our partners and Defence to develop this critical sovereign defence capability.
“Our next steps will involve working with Defence and the GWEO Strategic Partners, Raytheon Australia and Lockheed Martin Australia, on a roadmap that meets the GWEO capability elements.”
In the meantime, IAI is offering the Commonwealth what it calls a ‘very advanced autonomous maritime system’ that has been developed in recent years. Although the technologies used in this system are classified, sources told ADM that it will be “a real breakthrough” in autonomous maritime systems.
Sheshinski told ADM that the Russian invasion of Ukraine has creating a ‘new thinking’ about Australian defence needs.
“We are now in the midst of an effort to establish local companies with Australian partners in almost every technology that IAI has developed. We made a decision to transfer technologies and go for local production of our systems if they serve Australian defence needs,” Sheshinski said.
Sheshinski confirmed that an offer of an ‘advanced autonomous maritime system’ was made to Defence but refused to give any details: “This is still classified.”
He added that in the wake of the war in Ukraine, Australia has had “a different look” at the need for proven air defence systems.
“We are offering operational, combat proven systems like the Barak MX and the reactions are promising,” Sheshinski said.
IAI’s Barak-MX is a modular air defence system and is designed to address missile and aircraft threats. It operates both in marine platforms and land, and belongs to the Barak missile family and the company says it is capable of ‘simple integration’ with any existing legacy or sensors.
IAI says that all Barak MX Land deployable components (BMC, launchers with interceptors and Radars) can be operated from permanent infrastructure or can be truck mounted and deployed to temporal operational sites.
In 2017, Defence decided not to renew the lease on IAI’s Heron UAV. According to Sheshkinski, the company is now offering the RAAF a ‘number of advanced UAVs’. Finally, Sheshinski revealed that IAI is also offering its systems that are aimed at protecting military bases from UAVs and armed drone attacks, having identified the need for such systems following armed UAV attacks by the Houthi rebels in Yemen on targets in Saudi Arabia. (Source: AMR)
21 June 22. Trive-backed Vitesse Systems acquires Custom Microwave, Inc.. Trive Capital announced that it has acquired Custom Microwave, Inc. (CMi), which will join the Vitesse Systems platform. Vitesse Systems was launched in 2018 following the acquisition of California Brazing. The platform is focused on mission critical assemblies that enable the advancement of communication, radar and electronic warfare systems.
CMi is a leading provider of high-performance passive antennas that are engineered for critical space and ground applications. CMi’s engineering and testing expertise combined with advanced manufacturing processes such as electroforming and additive manufacturing will enable Vitesse to support a complete range of complex high-performance RF applications.
David Stinnett (Partner – Trive Capital) stated: “The proliferation of military and commercial satellites has resulted in increased demand for high performance antennas. The addition of CMi will enable Vitesse to support a broad range of LEO and GEO satellite programs and related ground-based systems. CMi will also complement Vitesse’s existing thermal management and precision waveguide manufacturing capability.”
Clency Lee-Yow (Owner and CEO – CMi) commented: “Partnering with Vitesse will allow us to gain broader exposure to a more diverse customer set and accelerate growth for CMi. We are excited to be able to support our customers as the demand for next generation communication systems continue to rise.”
Matthew Alty (CEO – Vitesse Systems) explained: “We are excited to have Clency and the CMi team join Vitesse. CMi is not only a fantastic addition to our existing capabilities, but also a great cultural fit; an innovative people-led business with a long-standing track record of delivering antenna solutions that are critical to the security of the USA, enhance space exploration, facilitate earth observation and enable global communication.”
About Vitesse Systems
Vitesse Systems is a leading supplier of complex cooling systems and communication hardware used in radar, electronic warfare, and data transmission applications. Headquartered in Newark, California, Vitesse operates five manufacturing facilities located in California, Colorado, Massachusetts, Maryland, and Nevada. All Vitesse facilities are ITAR Registered and DFARS compliant, serving a broad range of Aerospace and Defense customers.
About Trive
Trive Capital is a Dallas, Texas based private equity firm with more than $4bn of regulatory assets under management. Trive focuses on investing equity and debt in what it sees as strategically viable middle-market companies with the potential for transformational upside through operational improvement. We seek to maximize returns through a hands-on partnership that calls for identifying and implementing value creation ideas.
The Trive team is comprised of seasoned investment professionals who have been involved in over 100 middle-market transactions representing in excess of $6 bn in revenue across Trive’s targeted industry sectors and situations. (Source: PR Newswire)
21 June 22. Humanetics Acquires mg-sensor to Advance Its Safety, Digital and Sensor Vision. Humanetics announced today that mg-sensor GmbH, specialists in the design and development of high-quality sensors, data acquisition and calibration services, is officially joining the Humanetics group. This partnership is another milestone as Humanetics brings to life its vision to provide fully integrated solutions with hardware, software, IoT and sensor technologies, that will enable a new suite of services to improve the operational efficiency of our customers.
Humanetics and mg-sensor have worked together for many years offering customers innovative new products, integrating mg-sensor’s technology into Humanetics’ crash test dummies. mg-sensor is also a recognized leader in the design and manufacturing of the most technically advanced specialty load cells and sensors for the automotive, medical, and industrial sectors. mg-sensor will add critical capabilities to Humanetics’ sensor technologies portfolio, that currently includes specialty fiber optic sensors, electrical strain sensors and precision optical fiber processing.
mg-sensor was founded in 2011 by Norbert Gehri and Andreas Marroquin. Since that time, they have built a very successful business focused on developing advanced custom sensors and providing sensor calibration and repair services. The combination of Humanetics and mg-sensor will add value to customers by expanding the range of specialized products and strengthening the service and repair operations for customers across Europe and globally.
Christopher O’Connor, President and CEO of Humanetics commented: “We are thrilled that Norbert Gehri and Andreas Marroquin – and the entire mg-sensor team – are joining the Humanetics family. At the heart of our vision and digital roadmap is a commitment to bring our customers the best portfolio of connected hardware, IoT and software safety solutions. With the formation of our Safety, Digital and Sensors groups, the expertise of mg-sensor will accelerate how we simplify and improve our customers’ products and productivity.”
Norbert Gehri and Andreas Marroquin, joint Managing Directors of mg-sensors said, ”We are very excited to join Humanetics, the global leader in safety, hardware, software and sensors. We look forward to work with the team and be a part of driving growth and adding value to customers. We know the team at Humanetics very well, and we look forward to jointly building new solutions and to use the strength of the Humanetics network to grow our business.”
mg-sensor will be an integral part of the Humanetics safety portfolio and will continue to operate as mg-sensor to service its existing customers. Both Norbert Gehri and Andreas Marroquin will remain as Managing Directors and will continue to drive the growth of mg-sensors as well as explore new synergy opportunities with Humanetics sensor technology teams.
About Humanetics (Website: https://humanetics.humaneticsgroup.com/)
Humanetics is an Industrial Technology company, and a leading provider of safety systems, anthropomorphic test devices, crash test equipment, simulation software, CAE models, precision sensors, fiber optics and cutting-edge laser material engineering solutions. The group has over 850 employees across 24 facilities strategically located around the world with the global corporate headquarters located in Farmington Hills, Michigan, USA.
About mg-sensors GmbH (Website: https://www.mg-sensor.de/)
mg-sensor GmbH specializes in the design, manufacturing, calibration and repair of a variety of custom sensors measuring force, torque, temperature and angular rate for a wide range of applications and end markets. The company is based in Rheinmuenster, Germany. (Source: BUSINESS WIRE)
21 June 22. Leonardo DRS to acquire Israeli firm RADA, eyeing counter-drone market.
“The conflict in Ukraine has underscored the vulnerability of forces to drone attacks and has highlighted the need for modern, capable force protection systems,” said Leonardo DRS head William Lynn.
Leonardo DRS, the American subsidiary of Italian defense giant Leonardo, has announced plans to purchase Israeli firm RADA — with the combined company heading to the NASDAQ stock exchange.
Under the agreement, announced Tuesday morning, Leonardo DRS will acquire 100% of RADA, with shareholders of the Israeli firm receiving 19.5% equity ownership in the combined company, which will operate under the Leonardo DRS name. The deal is expected to close fourth quarter of this year. The two companies specialize in defense electronics and radars, or as a press release announcing the deal put it, “force protection and integrated multi-domain systems.” RADA’s product line focuses on tactical radars, with equipment ranging from mobile short-range air defense to counter-UAV capabilities. There are already overlap on some products, such as RADA-made radars that will be equipped on the DRS solution for the Stryker M-SHORAD design.
“RADA’s unique advanced tactical radars are complementary to Leonardo DRS and are expected to improve its position as an air defense, counter-UAS and vehicle protection integrator in the force protection market segment,” the release states. “For RADA, combining with Leonardo DRS is expected to significantly bolster its global competitive positioning and increase its scale, program diversity, cash generation and addressable market, providing significant future growth and value creation opportunities.”
According to an investor presentation, the combined company will have roughly even split in business among three sectors: “advanced sensing,” “network computing” and “force protection.” A fourth sector, “electric power and propulsion” will also be important, but slightly less so in terms of dollars.
In a statement, Leonardo DRS chief William Lynn said noted that real world factors played a part in moving forward with the acquisition: “The conflict in Ukraine has underscored the vulnerability of forces to drone attacks and has highlighted the need for modern, capable force protection systems. Not only is this accelerating U.S. purchases of these systems, but it is moving European countries, which are considerably behind in this area, to acquire more critical force protection assets. The combination of RADA and Leonardo DRS will open international market opportunities, particularly in short-range air defense, counter-UAS, counter rockets, artillery and mortars (C-RAM) and vehicle protection systems.” (Source: Breaking Defense.com)
21 Jun 22. Leonardo’s DRS agrees to all-stock merger with Israeli RADA. Defence group Leonardo (LDOF.MI) said on Tuesday its U.S. unit DRS (2VZ.F) and Israel’s Rada Electronic Industries agreed to an all-stock merger which will strengthen the Italian company’s position in the fast-growing force protection market. Under the agreement, DRS will buy 100% of the Israeli maker of tactical radar equipment and the current RADA shareholders will take a 19.5% stake in Leonardo’s unit, the Italian group said in a statement without providing financial details for the deal. At the closing of the transaction, expected in the fourth quarter of this year, DRS will be listed on NASDAQ and Tel Aviv stock exchange. (Source: Reuters)
20 June 22. Germany: New CEO’s Ambitions for ThyssenKrupp Marine System. In his first media interview (with die Welt), the newly-appointed CEO of ThyssenKrupp Marine Systems, Mr. Oliver Burkhard, the former director of ThyssenKrupp for human resources, has sent a new and strategic message: TKMS is back to business and ready to lead the sector not only in Germany but also in Europe. The key-word at TKMS these days is “consolidation”.
A consolidation made in TKMS
TKMS is back as a “key-actor” (Schlüsselspieler) on the European naval stage, after many years of disarray, contempt and neglect from both politicians in Germany and other industry players; not only ThyssenKrupp has no intention so far to sell the shipyard, but also has decided to invest €250m in it, a clear indication of its desire to keep the yards.
TKMS intends to lead the consolidation move in Europe, which is seen as necessary and urgent. TKMS will take the lead in Germany first, Europe being considered as a very difficult way. TKMS is now open to discussions with other German shipyards: Lürssen and German Naval Yards-Kiel (as previously recalled, TK and TKMS had in the past very high demands: in 2014, it was the price – more than €2Bn – given the near-bankruptcy of the holding; in 2020, it was not only the price but also the refuse of including the design office of TK in the surface domain).
Today, TKMS is really in a stronger position due to Mr. Rolf Wirtz’s efforts (international sales to Brazil, Egypt, Israel, Norway) than the other shipyards in Germany which have both ended their big contracts and have failed in merging (the merger announced in 2020 failed to materialize due to the absence of TKMS, without which no consolidation can seriously take place in Germany).
The role of Rheinmetall was not mentioned by Mr. Burkhard, but it would be very surprising if Rheinmetall didn’t take time to look at the new situation, given its past interest.
Lürssen and GNK-Y will face tough negotiations to reach an agreement with TKMS. Not only Mr. Burkhard is a hardliner, more political than a naval professional, at the beck and call of TK’s leadership (more value, more money, more attractiveness). The situation is thus fully reversed; in 2014 & 2020, Lürssen and GNK-Y were in a far better shape and were able to dictate their views.
A consolidation in production:
TKMS is on the ranks to buy the MV yards, to add new construction facilities (those of TKMS have been sold to GNK-Y, a move that is now seen as a “profound mistake”). TKMS anticipates a higher volume of naval orders (both submarines and surface Fleet) and needs facilities to produce. But the fact that TKMS refuses to enter into an agreement with GNK-Y on its industrial facilities shows how deep is TKMS’ resentment.
A consolidation of Germany’s industrial strategy:
TKMS intends to recall to the German Government how absurd was the decision of awarding the MKS-180 contract to the Dutch Damen shipyard, and how the so-called ‘ESG’ criteria would damage the defence industry. According to our information, the German MoD plans to award Damen a new batch of 2 F-126 with the money from the Special Fund. TKMS hopes that these both strategic mistakes will not happen again with the F-127 project.
The sole consolidation that Mr Burkhard has not evoked is the export market, which is obviously a sensitive issue. (Source: https://www.defense-aerospace.com/)
20 Jun 22. Multiple Contract Awards Valued Over A$300m Diversify Austal’s Long-term Revenue Base. Austal Limited (ASX:ASB) provided information about a number of contracts that Austal has secured, which help to diversify the Company’s long-term revenue base while utilising its shipbuilding and support expertise.
Austal has recently been awarded contracts to:
- Sustain two Cape-class patrol boats the Company built for the Government of the Republic of Trinidad and Tobago (Trinidad and Tobago Coast Guard), in country
- Construct an additional two Evolved Cape-class Patrol Boats (ECCPB’s) for the Royal Australian Navy (RAN), announced by the Australian Government in April 2022.
- Undertake the Detailed Design and Construction (DD&C) of the United States Navy’s new Auxiliary Floating Dry Dock Medium (AFDM).
Combined, the awarded contracts are worth more than A$300 m.
Austal Limited Chief Executive Officer Paddy Gregg said: “The new contracts are a great demonstration of Austal’s capability to take on multiple projects across diverse naval shipbuilding and support programs, in Australia and overseas”.
“The Trinidad and Tobago support contract is another example of Austal constructing and then maintaining patrol vessels to ensure that they can operate safely and efficiently over extended durations, while providing important longer-term revenue to Austal.”
“The two additional Evolved Cape-class Patrol Boats announced by the Australian Government two months ago have now been officially ordered, bringing the total number of vessels to be constructed to eight; demonstrating great confidence in the vessel platform by the Royal Australian Navy, who are already operating three of the patrol boats throughout Northern Australia.”
“The competitively awarded, US$128 m contract for the Floating Dry Dock is Austal USA’s second steel vessel program for the US Navy and clearly demonstrates the Navy’s confidence in the Mobile, Alabama shipyard’s growing capability to deliver aluminium and steel vessels.”
Support contract for two Cape-class Patrol Boats
Austal has secured a two-year contract to sustain the two Cape-class Patrol Boats the company constructed at its Australian operations for the Trinidad and Tobago Coast Guard (TTCG).
The two 58 metre vessels, TTS Port of Spain (CG41) and TTS Scarborough (CG42), will be sustained by Austal in-country, through to at least 2024.
“We have been very clear that we want to grow Austal’s support business and this is a perfect example of how Austal can support vessels constructed so that not only do the vessels continue to perform optimally for our clients, but also create a recurring revenue stream post-construction,” Mr Gregg said.
Additional two Evolved Cape-class Patrol Boats for the Royal Australian Navy
Austal Australia was awarded a A$324m contract to construct six 58 metre ‘Evolved’ Cape-class Patrol Boats (ECCPB’s) for the Royal Australian Navy in May 2020 and has already delivered one vessel, the ADV Cape Otway, in March 2022.
All remaining five vessels initially ordered are in various stages of production at the company’s Henderson, Western Australia shipyard. The additional two ECCPB’s, announced by the Australian Government on 18 April 2022 and valued at A$110m (to be adjusted for relevant inflation impacts), bring the total number of vessels to be delivered to eight and extend production at the shipyard through to 2024.
Austal USA has commenced construction of two Navajo-class towing and salvage (T-ATS) vessels for the US Navy, marking the commencement of steel shipbuilding at the Company’s facility in Mobile, Alabama. Officially opened last month, the US$100m facility was funded 50:50 by Austal and the United State Government.
The T-ATS program is a US$145 m contract to build two ocean-going tug, salvage, and rescue capabilities to support U.S. fleet operations and will be a multi mission common hull platform capable of towing heavy ships. These ships will be able to support current missions, including oil spill response, humanitarian assistance, and wide area search and surveillance.
The United States Navy’s new Auxiliary Floating Dock Medium (AFDM) will also be constructed at Austal USA’s steel manufacturing facility in Mobile, Alabama. The “Rennie” type floating dock will incorporate features to improve operability and maintainability, based on Austal USA’s experience from owning, operating and maintaining a similar dry dock at its repair facility in Mobile. With a lifting capacity of over 18,000 tonnes, length overall of 211 metres and working area of nearly 8,500 square metres, the dry dock will have the capability to service large vessels such as Littoral Combat Ships (LCS), Guided Missile Destroyers (DDG), Guided Missile Cruisers (CG) and Landing Ship Docks (LSD’s).
Austal Australia is also delivering 21 steel-hull Guardian-class Patrol Boats for 12 Pacific Island nations and Timor Leste under the SEA3036-1 Pacific Patrol Boat Replacement Project, with fifteen patrol boats delivered since 2018. Austal provides in-service support to both the Cape and Guardian-class Patrol Boat fleets through an expanding service centre network including Henderson, Western Australia, Cairns, Queensland and Darwin, Northern Territory. (Source: ASD Network)
20 Jun 22. Engine parts maker Enjet Aero makes four acquisitions. Enjet Aero, which manufactures parts for military and commercial aircraft engines, has made four acquisitions in the past 16 months to expand its production capacity and product offering, according to the US-based company. The shopping spree began in 2021 with the purchase of Enginetics near Dayton, Ohio, followed by Birken Manufacturing in Bloomfield, Connecticut. Enjet has made two more acquisitions in 2022: Spartan Aerospace in Manchester, Connecticut, which was announced in March, and, Integral Industries in Newington, Connecticut, which was announced in June. Financial terms of the four deals were not disclosed.
Enjet’s workforce, which totalled to about 450 employees before the acquisitions, has grown to about 750 employees, Enjet’s chief financial officer Christopher Ferraro told Janes on 17 June. (Source: Janes)
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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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