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01 Sept. 22. Quest Global, one of the world’s fastest-growing engineering services firms, today announced the acquisition of EXB Solutions (EXB) to join forces with its U.S. subsidiary, Quest Defense Systems and Solutions (Quest Defense). This addition expands the company’s capabilities in software and systems engineering with particular focus on quality in the execution of design, development, verification and validation for safety and mission-critical applications – and marks another milestone on Quest Global’s growth journey.
EXB is a U.S.-based provider of systems and software engineering solutions for organizations delivering mission and safety-critical applications and products. As a well-known and highly respected leader in this space, EXB brings long-standing relationships with key clients in the Aerospace, Defense and Medical Devices industries.
“At Quest Defense, we believe engineering has the unique opportunity to solve the problems of today that stand in the way of tomorrow – to create a brighter future and today’s news moves us one step further on that journey,” said from Steve Gerber, President and CEO of Quest Defense. “Together with EXB Solutions’ capabilities, we will continue to provide cutting-edge engineering solutions to our clients in the Aerospace, Defense and Medical Devices industries.” (Source: Google/https://theprint.in/ani-press-releases)
31 Aug 22. CPE adds TAE Aerospace, RUAG Australia to create big defence play. The buy-and-build strategy is alive and well at Sydney-based private equity shop CPE Capital, which has cut a deal to add two businesses to its defence and aerospace contractor ASDAM.
Street Talk can reveal that ASDAM is set to acquire TAE Aerospace, which maintains engines in Lockheed Martin’s F-35 aircraft, and the Australian operations of Swiss government-owned RUAG.
The businesses, when added to ASDAM, which already owns Marand Precision Engineering and Levett Engineering, are expected to help create a $400 m a year company at the revenue line with about 1000 employees across about 20 sites in Australia and the United States.
That’s a unique proposition in the world of Australian private equity, which has for years struggled to crack into the lucrative world of defence and defence contracts, despite the success of other PE investors in offshore markets.
It’s getting to the scale where ASDAM could easily be big enough to make a tilt at the ASX boards, or be snapped up by a bigger Australian or offshore player keen to get into the defence services market. It is understood to be the biggest Australian-based company servicing the defence sector.
There’s considerable thinking behind the roll-up, and a decision to target F-35s – a fighter jet used by the Royal Australian Air Force and about a dozen other air forces around the world. CPE Capital started with Marand, which makes vertical tails installed on F-35s, while TAE Aerospace has the contract to maintain F-35s throughout the Asia Pacific, taking it from manufacturing through to maintenance.
It is understood RUAG Australia was up for sale as part of its parent’s global program to sell non-core assets.
As of 2025, RUAG Australia will have lead responsibility in the Pacific region for the maintenance, repair and overhaul of F-35 components in the repair technology groups of valves, auxiliary power systems, landing gear components and hydraulics, pneumatics, pneudraulics and Hydro-Mechanical.
Marand is an innovative manufacturer that cut its teeth in Australia’s car industry before broadening its horizons to provide engineering solutions to defence, aerospace, rail and mining clients. It was founded 50 years ago by Andy Ellul. PwC advised CPE Capital. An announcement is expected on Thursday. (Source: Google/https://www.afr.com/)
30 Aug 22. TAT Technologies Reports results for the Second Quarter of 2022. TAT Technologies Ltd. (NASDAQ: TATT) (“TAT” or the “Company”), a leading provider of products and services to the commercial and military aerospace and ground defense industries, reported today its unaudited results for the three month and six-month periods ended June 30, 2022.
Key Financial Highlights:
- Revenues for the six-month period that ended on June 30, 2022 increased by 2% to $40.7m compared with $39.9m in the six-month period that ended on June 30, 2021. Revenues for Q2 2022 were $20.8m, a decrease of 3.7% compared with $21.6m in Q2 2021.
- Gross profit for Q2 2022 was $4m (19.4% as a percentage of revenues) an increase of 27.8% compared with $3.2m (14.6% as a percentage of revenues) in Q2 2021. Gross profit for the six-month period that ended on June 30, 2022 was $7.1m (17.4% as a percentage of revenues) an increase of 8.1% compared with $6.6m (16.4% as a percentage of revenues) in the six-month period that ended on June 30, 2021.
- Adjusted EBITDA for Q2 2022 doubled to $0.9m compared with $0.4m in Q2 2021. Adjusted EBITDA for the six-month period that ended on June 30, 2022 was $1.4m compared with $2.0m in the six-month period that ended on June 30, 2021.
- During the first six months of 2021 the company received grants (which were recorded as a decrease of expenses) in the value of $1.9M. Adjusted EBITDA excluding grants increased by $1.3m to $1.4m in the six month period that ended on June 30 2022 compared with $0.1m in the six month period that ended on June 30, 2021 (for more details see the proforma comparison below)
- Net loss in Q2\22 was ($0.1)m, or loss of ($0.01) per diluted share, compared with a net loss of ($2.5)m, or loss of ($0.3) per diluted share, in Q2\21. For the six-month period that ended on June 30, 2022, net loss was ($1.7)m, or loss of ($0.2) per diluted share compared with a net loss of ($1.9)m, or $(0.2) per diluted share in the six-month period that ended on June 30, 2021.
- Net loss for Q2\22 and for the six-months period that ended on June 30, 2022 include restructuring expenses of $0.8 m and $1.7 m, respectively.
- Proforma results comparison, representing 2021 without grants:
Mr. Igal Zamir, TAT’s CEO and President commented on the results: “The financial results of the second quarter of 2022 represent a continuous improvement in our results compared to the previous quarter and compared to the same period in 2021. During Q2 of 2022 we managed to increase revenues, improve our gross profit and gross margin and improve our operational cash flow compared to Q1 of 2022. Part of this improvement is a result of cost cutting measures that are part of our restructuring plan. Global supply chain issues continue to affect our business and results. We continue to make enormous efforts to meet our customers’ needs at a time when demand post the COVID-19 pandemic is picking up, but materials and components availability is still problematic”. Mr. Zamir continued: “During this quarter we signed a five-year agreement with one of the world’s largest cargo companies with expected revenues of $50 m over this period. This agreement already contributes revenues and will be part of our growth plan for Q3\22. We continue to work on other opportunities that may result from the strategic agreements that we signed with Honeywell last year”. (Source: PR Newswire)
30 Aug 22. Aircraft parts makers Mecachrome, WeAre to join forces.
Mecachrome has finalised previously disclosed plans to acquire fellow French aerospace parts manufacturer WeAre Group, paving the way for the creation of a combined company with approximately EUR450 m (USD450 m) in annual revenue, according to a 29 August announcement.
The transaction will improve the ability of Mecachrome and WeAre to serve their customers by broadening their offerings and strengthening their finances, the announcement says. Under the deal, French private equity firms Tikehau Ace Capital and Bpifrance will own 64.3% and 35.7%, respectively, of the combined business.
The merged company will be one of Europe’s largest aerospace parts manufacturers, employing about 3,700 people at more than 20 production sites. It will support defence platforms such as Dassault Aviation’s Rafale multirole fighter, the Rafale’s Safran M88 engine, and MBDA missiles, and it will have “a clear strategy to continue to develop in this field”, Tikehau spokesperson Audrey Hood told Janes. (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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