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04 Feb 24. UK OneWeb Investment Wasted. Now its tech ‘is a gift to France.’ Britain’s deal to offload its stake in a company with a mission to provide internet coverage across the planet is not only looking bad financially, its ‘special share’ appears worthless
Pouring £400m of taxpayers’ cash into a bankrupt satellite company in the middle of a pandemic was something of a head-scratcher for the public. But for Dominic Cummings, spending the money in June 2020 to rescue the British satellites venture OneWeb was a no-brainer.
It was a symbol of the Brexit freedoms that Cummings had campaigned for: freed of the bureaucratic shackles of Brussels, the government could place swashbuckling bets on groundbreaking technology that could rival Elon Musk and his burgeoning Starlink satellite programme.
The UK’s investment in OneWeb, a “constellation” of hundreds of satellites designed to provide internet coverage everywhere on the planet, was treated with scepticism by civil servants from the outset. By the time Cummings was shown the door in November 2020, the taxpayers’ investment was already souring.
When Boris Johnson quit as prime minister in July 2022, the wheels were in motion to sell the operation to the French satellite operator Eutelsat in what was officially billed as a “merger”. When the deal was done, UK taxpayers received a 10.9 per cent stake in Eutelsat as well as a “special share” that would safeguard British interests.
But the deal seems to have proved a dud ‒ for Eutelsat and the British taxpayer.
Eutelsat revealed last week, in a little-noticed stock market announcement, that OneWeb was beset with delays, sending the French company’s shares to an all-time low. That means UK taxpayers have now lost roughly £250m of the £400m the government originally sunk into OneWeb.
But Britain’s deal to offload its OneWeb stake to the French is not only looking bad financially. It is now emerging that Eutelsat, whose other shareholders include the Indian telecoms billionaire Sunil Bharti Mittal as well as the French and Chinese governments, may have played a blinder.
According to company insiders it appears that the Paris-based company has seized control of the British technology and intellectual property that was painstakingly nurtured within OneWeb’s control centre in Shepherds Bush. Britain’s “special share” designed to safeguard the UK’s interest in OneWeb could be worthless.
Before addressing what went wrong, it is worth recapping how the British satellite trailblazer fell into Eutelsat’s clutches.
Founded in 2012 by the entrepreneur Greg Wyler, OneWeb attracted investment from a starry cast. Sir Richard Branson was convinced to invest during a drinks party with Wyler on the British mogul’s Necker Island. Pop star will.i.am became a celebrity endorser after meeting another investor at Davos.
OneWeb also formed a joint venture with Airbus to build satellites at a state-of-the-art facility in Merritt Island, Florida. But when the Covid pandemic hit, halting scheduled launches, losses quickly escalated to a point at which bosses had little option but to file for bankruptcy protection in March 2020.
Cummings saw an opportunity. Johnson’s top adviser at the time convinced the prime minister that state ownership of OneWeb would give post-Brexit Britain a satellite network that would be the envy of the EU ‒ while providing competition to Musk’s burgeoning Starlink programme.
In the summer of 2020, the UK bailed OneWeb out with £400 million alongside millions more from Mittal. But despite the successful launch of hundreds of satellites in the months that followed, the desire to keep bankrolling losses waned within Whitehall.
When the sale to Eutelsat was announced in July 2022 it was hailed as “positive news for UK taxpayers’’ by the government. Officials insisted that a “special share” would give the UK national security controls over the network and first-preference rights over domestic industrial opportunities.
Yet precisely what the special share entitles the UK to is questionable.
First of all, it is a share in OneWeb’s UK limited company ‒ not in the parent company Eutelsat. Critics said that this matters because, although OneWeb’s technology sits within the UK entity, it is not ring fenced and can be freely used across the Eutelsat group ‒ in other words, potentially without British approval.
As a spokeswoman for Eutelsat said: “The IP [intellectual property] owned by OneWeb (OW) is still legally owned by OW ‒ but OW itself is now owned by Eutelsat, so the IP is within the perimeter of the combined group.”
While OneWeb has successfully launched more than 600 satellites into space, the problems revealed last week are due to problems on the ground.
OneWeb’s network of satellites orbit about 1,200km above the planet and are controlled from the company’s headquarters in west London. Data is beamed down to a network of ground control centres scattered around the world and then transferred on through telecoms infrastructure such as fibre optic cables.
Eutelsat had planned to have all 43 of these ground control centres completed by “early 2024” to deliver what is known as “global coverage”. But last week Eva Berneke, the chief executive of Eutelsat, said that there would now only be enough sites up and running to deliver 90 per cent of global coverage by the middle of 2024.
The stock market was shocked, but it came as little surprise to some in the space industry. “It was very likely,” said Marek Ziebart, a professor of space geodesy at University College London. “They had contracted-out the development of the ground terminals. They didn’t do that in-house.”
Berneke insisted that the delays would not lead to the loss of OneWeb customers to rivals ‒ most notably Elon Musk. Unlike Musk’s Starlink, OneWeb focuses on businesses and industries such as civil engineering and construction using internet-of-things technology rather than everyday consumers. “This is not a melting ice cube,” the chief executive said.
At the same time as announcing the delays to OneWeb, Eutelsat also said that it was selling OneWeb’s stake in its 50:50 satellite-building joint venture with Airbus. Eutelsat said the sale was part of “debt reduction efforts” but some OneWeb advisers fear a different explanation: geopolitics.
OneWeb expects to build a second generation ‒ known as “Gen 2” ‒ of satellites in the future and sources argue that the sale of its American joint venture will pave the way for them to be made in Eutelsat’s home country of France.
Eutelsat responded: “Both French satellite manufacturers [Thales and Airbus] have extensive operations in the UK which are fundamental parts of their supply chain. No decisions have yet been made on suppliers for Gen 2.”
Nevertheless, constructing satellites on the Continent would do no harm to Eutelsat’s chances of achieving its next major goal: winning the contract to deliver the European Commission’s IRIS² space programme. IRIS² is the third constellation of the European Union’s strategic space infrastructures after Galileo and Copernicus, for which the EU will contribute €2.4 billion.
Thierry Breton, the European commissioner for the internal market, stressed the importance of IRIS² when announcing it in November 2022. “Space is indeed a much coveted area in which the European Union must guarantee its essential interests. And our space technologies have become strategic capabilities for our citizens, for the resilience of our economies and, of course, for our armies,” he said.
Eutelsat is expected to leverage the technology it now has from OneWeb to try to win the IRIS² contract, which is expected to include the development and launch of up to 170 low earth orbit satellites like OneWeb’s between 2025 and 2027, according to the EU space agency.
One industry source this weekend claimed that the OneWeb situation has now attracted the attention of senior British ministers, who have been alerted to the situation and now want to know how the UK was blindsided.
A spokesman for the government responded: “The government’s strategic investment in OneWeb demonstrated its commitment to the space sector and of advancing its ambition to put the UK at the forefront of a new commercial space age. The government’s special share rights in OneWeb are retained in full following the merger with Eutelsat.”
The industry source is unconvinced: “They gifted OneWeb to France.” (Source: The Sunday Times)
BATTLESPACE Comment: At the time of this knee jerk reaction from a Tech geek Domnic Cummings and a Prime Minister Boris Johnson who had no knowledge or indeed interest in industry and technology, observers predicted the demise of this wasted £400m deal from the outset. It does not bide well for future technology investments from a government populated with people with lack of industry experience advised by geeks with little or no technology expertise and/or knowledge of running a business. One of the technical drawbacks to OneWeb is that, its LEO 1200km orbit altitude leaves it with too much latency to be of any ise for financial institutions to use for realtime dealing in foreign exchange and shares.
02 Feb 24. BAE Systems has acquired Malloy Aeronautics – a leading company in innovative heavy lift drone and aeronautical technologies.
Malloy Aeronautics designs and supplies all-electric uncrewed aerial systems (UAS) to both civil and military customers. Its range of uncrewed, heavy lift quadcopters are capable of lifting payloads from 68kg to 300kg over short to medium range missions.
These platforms offer interchangeable capabilities and greater flexibility at a fraction of the cost and time of more traditional methods, whilst minimising risk to more expensive assets and human life.
Malloy’s approximately 80 strong workforce will continue to operate from its site in Berkshire, supporting its existing customers. BAE Systems and Malloy, who have been working together in advancing cutting-edge UAS solutions since 2021, will further develop Malloy’s existing portfolio and accelerate new and novel technologies to customers worldwide.
Simon Barnes, Group Managing Director of BAE Systems’ Air sector, said: “Our acquisition of Malloy Aeronautics is part of our ongoing strategy to develop and invest in breakthrough technologies which augment our existing capabilities and provide our customers with the innovation they need in response to evolving requirements. We’re confident that the synergy between our two companies will pave the way for even greater achievements in uncrewed aerial systems and technologies.”
Oriol Badia, Chief Operating Officer of Malloy Aeronautics, said: “We’ve come a long way over the last ten years, turning our vision of sustainable electric heavy lift technology into reality, thanks to the dedication and efforts of our team. This new step in our journey with BAE Systems will allow us to combine the strengths and vision of a young company with the reach and support of an experienced one, ultimately giving our customers the ability to scale their demands and allow us to deliver innovative new products – including the T-650 – at pace.”
BAE Systems and Malloy Aeronautics engineers have been developing the 300kg T-650 all-electric ‘heavy lift’ UAS as a potential new solution to deliver cost-effective, sustainable rapid response capability to military, security and civilian customers.
Last year, the companies announced the successful demonstration of the carriage and release of a 200kg inert Sting Ray Training Variant Torpedo using the T-600 demonstrator aircraft during a large NATO exercise, known as REPMUS (Robotic Experimentation and Prototyping with Maritime Uncrewed Systems).
Malloy Aeronautics will be part of FalconWorks, the research and development business within BAE Systems’ Air sector. Dave Holmes, Managing Director of FalconWorks, said: “Malloy’s expertise and innovation in quadcopters and sustainable air vehicles is an exciting addition to our FalconWorks® family. This acquisition supports our commitment to increase our portfolio of products, offering new and existing customers the cutting-edge solutions they need.”
31 Jan 24. Boeing Reports Fourth Quarter Results.
Fourth Quarter 2023
- Delivered 157 commercial airplanes and recorded 611 net orders
- 787 production rate at five per month; 737 production rate at 38 per month
- Generated $3.4bn of operating cash flow and $3.0bn of free cash flow (non-GAAP)
Full Year 2023
- Delivered 528 commercial airplanes and recorded 1,576 net orders
- Total company backlog grew to $520bn, including over 5,600 commercial airplanes
- Generated $6.0bn of operating cash flow and $4.4bn of free cash flow (non-GAAP)
The Boeing Company [NYSE: BA] recorded fourth quarter revenue of $22.0bn, GAAP loss per share of ($0.04) and core loss per share (non-GAAP)* of ($0.47). Boeing reported operating cash flow of $3.4bn and free cash flow of $3.0bn (non-GAAP). Results improved on higher commercial volume and performance.
“While we report our financial results today, our full focus is on taking comprehensive actions to strengthen quality at Boeing, including listening to input from our 737 employees that do this work every day,” said Dave Calhoun, Boeing president and chief executive officer. “As we move forward, we will support our customers, work transparently with our regulator and ensure we complete all actions to earn the confidence of our stakeholders.”
, “Non-GAAP Measures Disclosures.”
Operating cash flow was $3.4bn in the quarter reflecting higher volume and favorable receipt timing.
Cash and investments in marketable securities totaled $16.0bn, compared to $13.4bn at the beginning of the quarter. The company has access to credit facilities of $10.0bn, which remain undrawn.
Total company backlog at quarter end was $520bn.
Segment Results
Commercial Airplanes
Commercial Airplanes fourth quarter revenue increased to $10.5 bn driven by higher deliveries and favorable mix (Table 4). Operating margin of 0.4 percent also reflects improved performance and lower abnormal costs.
The company continues to cooperate transparently with the FAA following the Alaska Airlines Flight 1282 accident involving a 737-9. Commercial Airplanes is taking immediate actions to strengthen quality on the 737 program, including requiring additional inspections within its factory and at key suppliers, supporting expanded oversight from airline customers and pausing 737 production for one day to refocus its employees on quality. The company has also appointed an outside expert to lead an in-depth independent assessment of Commercial Airplanes’ quality management system, with recommendations provided directly to Calhoun and the Aerospace Safety Committee of Boeing’s Board of Directors.
The 737 program continues to deliver airplanes and its production rate is now at 38 per month. The 787 program production rate is now at five per month.
During the quarter, Commercial Airplanes booked 611 net orders, including 411 737, 98 777X, and 83 787 airplanes, began certification flight testing on the 737-10, and resumed production on the 777X program. Commercial Airplanes delivered 157 airplanes during the quarter and backlog included over 5,600 airplanes valued at $441bn.
Defense, Space & Security
Defense, Space & Security fourth quarter revenue was $6.7bn. Fourth quarter operating margin was (1.5) percent, primarily driven by $139m of losses on certain fixed-price development programs. Results were also impacted by unfavorable performance and mix on other programs.
During the quarter, Defense, Space & Security captured an award from the U.S. Air Force for 15 KC-46A Tankers, began the U.S. Air Force developmental flight test program for the T-7A Red Hawk, and Canada selected the P-8A Poseidon as its multi-mission aircraft. Backlog at Defense, Space & Security was $59bn, of which 29 percent represents orders from customers outside the U.S.
Global Services
Global Services fourth quarter revenue of $4.8bn and operating margin of 17.4 percent reflect higher commercial volume and mix.
During the quarter, Global Services opened its first parts distribution center in India and received a follow-on contract option to provide sustainment for the C-17 Globemaster III.
Additional Financial Information
Other unallocated items and eliminations primarily reflects timing of allocations. The fourth quarter effective tax rate primarily reflects tax expense on pre-tax losses driven by an increase in the valuation allowance.
01 Feb 24. Rheinmetall acquires majority stake in military vehicle maker Automecanica Mediaș SRL. Continuing to expand its presence in Romania as a leading manufacturer of military vehicles, Rheinmetall is taking up a majority share in Romanian vehicle maker Automecanica Mediaș. The acquisition deepens the Düsseldorf-based technology enterprise’s footprint in Central Europe, opening the door to new customer countries in the region with substantial sales potential. Rheinmetall already has locations in two other countries on NATO’s eastern flank, Hungary and Lithuania. In December 2023, moreover, Romania awarded Rheinmetall a major air defence order worth €328m.
Through Rheinmetall Landsysteme GmbH, the Group will hold a 72.5% stake in the company, which will operate in Romania under the name Rheinmetall Automecanica SRL. The remaining shares in the company will stay in private hands. The contractual agreement still requires approval by the relevant government authorities before it takes effect.
In the medium term, Rheinmetall puts the annual sales potential of the newly acquired company at around €300m and expects incoming orders in the current financial year to be in three-digit m-euro range.
As Rheinmetall chief executive Armin Papperger sees it, “Bringing Automecanica Mediaș into the Rheinmetall family marks another important milestone in our strategy of strengthening the Group’s presence in Central Europe, which in turn contributes to bolstering the defensive capabilities of the EU and NATO on Europe’s eastern flank. We look forward to supporting Romania in future projects in the vehicle domain as well as with other Rheinmetall technologies. Here, the inclusion of local partners and strengthening the Romanian economy are matters of central concern to us. We want to meet the expectations of the Romania’s politicians and military in the best possible way.”
Automecanica Mediaș is a longstanding maker of special vehicles, truck build-ons and trailers for the civilian and military market. Rheinmetall has been cooperating with Automecanica since 2022, when the two partners joined forces to operate a maintenance and repair facility for military vehicles in Satu Mare, Romania.
The plant in Mediaș, Romania is poised to play a key role in maintaining the operational readiness of Western-built combat vehicles in Ukraine, as well as assuring logistical support. Rheinmetall’s presence in Romania means that forces deployed on NATO’s eastern flank will be able to count on shorter response times and more robust supply chains.
The acquisition constitutes a further expansion of Rheinmetall’s global vehicle production network, which already includes plants in the United States, Canada, Australia, the United Kingdom, Austria, the Netherlands and Germany. As well as significantly expanding the Group’s production and maintenance capacity, the move adds to its current portfolio of military vehicles.
Truck build-ons, trailers and other special vehicles developed and produced by Automecanica augment and complement Rheinmetall’s existing range of military trucks, a domain in which Rheinmetall MAN Military Vehicles (RMMV) is a major force in world markets.
Looking ahead, the chassis of antiaircraft systems belonging to the Romanian military are to be maintained and modernized here as well.
In the medium term, Rheinmetall puts the annual sales potential of the newly acquired company at around €100m and expects incoming orders in the coming financial year to be in the mid-three-digit m-euro range.
Automecanica has long been an efficient and effective partner of the Romanian armed forces. In the new constellation, Rheinmetall, moving forward with Automecanica, now seeks to be a leading partner of the Romanian armed forces as well as those of neighbouring countries, with a significantly expanded array of products and services.
About Rheinmetall:
Headquartered in Düsseldorf, Germany, Rheinmetall AG is a high-tech enterprise with some 34,000 employees at 139 locations worldwide. The Group had sales in 2022 of €6.4bn. One of the world’s foremost makers of military systems and equipment, Rheinmetall is also a driver of forward-looking technological and industrial innovation in the civil sector. A strong commitment to sustainability is an integral part of Rheinmetall strategy.
About Automecanica Mediaș SRL: Automecanica Mediaș is a Romanian producer of truck build-ons and trailers for the civilian and military market. The company also makes tankers for transporting fuel and liquid foodstuffs as well for shipping general cargo. Furthermore, Automecanica’s product portfolio includes streetsweepers and construction vehicles.
Founded in 1941 as Atelierele de Stat pentru Aeronautică Mediaș, the company switched to producing vehicle build-ons and lifting platforms in 1962.
30 Jan 24. Oshkosh Corporation Reports 2023 Fourth Quarter and Full Year Results.
Reports Fourth Quarter Sales of $2.47bn, up 12 Percent
Reports Strong Orders Leading to Backlog of $16.8bn
Reports Fourth Quarter Diluted Earnings per Share of $2.28 and Adjusted1 Earnings per Share of $2.56
Reports 2023 Diluted Earnings per Share of $9.08 and Adjusted1 Earnings per Share of $9.98
Announces 12 Percent Increase in Quarterly Cash Dividend to $0.46 Per Share
Initiates 2024 Earnings per Share Guidance in the Range of $9.45 and Adjusted1 Earnings per Share Guidance in the Range of $10.25
Oshkosh Corporation (NYSE: OSK), a leading innovator of purpose-built vehicles and equipment, today reported 2023 fourth quarter net income of $150.8m, or $2.28 per diluted share, compared to net income of $75.1m, or $1.14 per diluted share, for the fourth quarter of 2022. Adjusted1 net income was $169.4m, or $2.56 per diluted share, for the fourth quarter of 2023 compared to $107.4m, or $1.63 per diluted share, for the fourth quarter of 2022. Comparisons in this news release are to the fourth quarter of 2022, unless otherwise noted.
Consolidated sales in the fourth quarter of 2023 increased 11.9 percent to $2.47bn primarily due to the inclusion of sales related to acquisitions of $192m and improved pricing.
Consolidated operating income in the fourth quarter of 2023 increased 46.5 percent to $215.4m, or 8.7 percent of sales, compared to $147.0m, or 6.7 percent of sales, in the fourth quarter of 2022. The increase was primarily due to improved price/cost dynamics, favorable mix and favorable cumulative catch-up adjustments in the Defense segment, offset in part by higher incentive compensation costs and higher operating costs. Adjusted1 operating income in the fourth quarter of 2023 was $239.9 m, or 9.7 percent of sales, compared to $155.6m, or 7.1 percent of sales, in the fourth quarter of 2022.
“Oshkosh Corporation delivered a strong fourth quarter to cap off a very successful year for our company, highlighted by full year 2023 revenues of $9.7bn and adjusted earnings per share of $9.98. We have been putting the building blocks in place to deliver sustainable growth in the future,” said John Pfeifer, president and chief executive officer of Oshkosh Corporation. “Our fourth quarter was highlighted by strong revenue and earnings growth leading to adjusted earnings per share of $2.56. We experienced solid order levels across our business, and particularly in our Access segment, leading to a record backlog of $16.8bn, which provides us with considerable visibility into the future. I want to thank our 17,000 team members for their hard work and dedication to our shared success.
“During the quarter, we booked several important JLTV orders for both domestic and international militaries, contributing to improved results. While we expect to be wrapping up domestic JLTV production in early 2025, we continue to see opportunities in international markets, and we look forward to starting production of the revolutionary USPS Next Generation Delivery Vehicle in April.
“We continue to invest in new technologies and capacity to drive further growth. During the quarter, we booked notable Striker Volterra electric ARFF orders with the Japan Ministry of Defense and Paris’ Le Bourget airport, building on the success of previously announced orders from other airports throughout the world. We are confident that we will see increased demand for our revolutionary new battery-powered units that responsibly support lower carbon emissions.
“As a result of our strong performance in 2023, solid demand, record backlog, improved supply chains and positive outlook, we are pleased to announce 2024 expectations for adjusted earnings per share to be in the range of $10.25. We are also announcing a quarterly cash dividend of $0.46 per share, representing a 12.2 percent increase, which marks the 10th consecutive year in which we have increased our dividend by double digits,” said Pfeifer.
Factors affecting fourth quarter results for the Company’s business segments included:
Access – Access segment sales for the fourth quarter of 2023 increased 7.1 percent to $1.15bn as a result of improved sales volume, higher pricing in response to higher input costs and the inclusion of sales of $15.9m related to the Hinowa acquisition.
Access segment operating income in the fourth quarter of 2023 increased 39.8 percent to $162.2m, or 14.1 percent of sales, compared to $116.0m, or 10.8 percent of sales, in the fourth quarter of 2022. The increase was primarily due to improved price/cost dynamics, improved customer mix and higher sales volume, offset in part by increased operating expenses to support higher sales levels and higher incentive compensation costs.
Adjusted1 operating income in the fourth quarter of 2023 was $165.6m, or 14.4 percent of sales, compared to $116.1m, or 10.8 percent of sales, in the fourth quarter of 2022.
Defense – Defense segment sales for the fourth quarter of 2023 increased 7.2 percent to $586.9m primarily due to cumulative catch-up adjustments on contract awards.
Defense segment operating income in the fourth quarter of 2023 increased 205.5 percent to $60.8m, or 10.4 percent of sales, compared to $19.9m, or 3.6 percent of sales, in the fourth quarter of 2022. The increase was the result of favorable cumulative catch-up adjustments on contract margins of $24.0m in the fourth quarter of 2023 due to contract awards compared to unfavorable adjustments of $10.5m in the fourth quarter of 2022, lower engineering costs and the impairment of an intangible asset in the fourth quarter of fiscal 2022, offset in part by higher incentive compensation costs.
Adjusted1 operating income in the fourth quarter of 2023 was $62.1m, or 10.6 percent of sales, compared to $27.0m, or 4.9 percent of sales, in the fourth quarter of 2022.
Vocational – Vocational segment sales for the fourth quarter of 2023 increased 26.1 percent to $735.3m due to the inclusion of sales related to the AeroTech acquisition and higher pricing in response to increased input costs, offset in part by lower sales volume and the sale of the rear discharge mixer business. AeroTech had sales of $176.5m during the fourth quarter of 2023.
Vocational segment operating income in the fourth quarter of 2023 increased 7.0 percent to $44.4m, or 6.0 percent of sales, compared to $41.5m, or 7.1 percent of sales, in the fourth quarter of 2022. The increase was primarily due to improved price/cost dynamics, offset in part by lower sales volume and higher incentive compensation costs.
Adjusted1 operating income in the fourth quarter of 2023 was $64.2m, or 8.7 percent of sales, compared to $42.9m, or 7.4 percent of sales, in the fourth quarter of 2022.
Corporate – Corporate costs in the fourth quarter of 2023 increased $21.6m to $52.0m due to higher incentive compensation costs and higher new product development costs.
Interest Expense Net of Interest Income – Interest expense net of interest income in the fourth quarter of 2023 increased $11.3m to $20.8m due to increased borrowings on the Company’s revolving credit facility related to the acquisition of AeroTech. The Company made net repayments of $330m on the revolving credit facility during the fourth quarter of 2023, reducing the outstanding balance to $175m as of December 31, 2023.
Miscellaneous, net – Miscellaneous income, net in the fourth quarter of 2023 was $0.6m compared to miscellaneous expense, net of $32.0m in the fourth quarter of 2022. Miscellaneous expense, net for the fourth quarter of 2022 primarily related to a $33.6m settlement of a frozen defined benefit pension plan.
Provision for Income Taxes – The Company recorded income tax expense in the fourth quarter of 2023 of $44.2m, or 22.6 percent of pre-tax income, compared to $29.1m, or 27.6 percent of pre-tax income, in the fourth quarter of 2022. Income taxes in the fourth quarter of 2022 were elevated due to an anti-hybrid tax matter in a foreign jurisdiction.
Full-Year Results
The Company reported net sales for 2023 of $9.66bn and net income of $598.0m, or $9.08 per diluted share. This compares with net sales of $8.28bn and net income of $173.9m, or $2.63 per diluted share, in the prior year. The increase in net income for 2023 was the result of improved price/cost dynamics, higher sales volume, improved mix, favorable cumulative catch-up adjustments in the Defense segment on contracts in 2023 compared to unfavorable adjustments in 2022, the absence of a charge of $31.3m associated with foreign anti-hybrid tax legislation due to comments made by taxing authorities of the applicable jurisdiction during the first quarter of 2022 and the absence of an after-tax charge of $25.7m for a settlement of a frozen pension plan, offset in part by higher incentive compensation costs and increased operating expenses to support the higher sales levels.
Adjusted1 net income for 2023 was $657.2m, or $9.98 per diluted share, compared to $237.6m, or $3.59 per diluted share, in 2022.
Fiscal 2024 Expectations
The Company announced its 2024 diluted earnings per share estimate to be in the range of $9.45 and its adjusted1 earnings per share estimate to be in the range of $10.25 on projected net sales of approximately $10.4bn.
Dividend Announcement
The Company’s Board of Directors today declared a quarterly cash dividend of $0.46 per share of Common Stock. The dividend represents an increase of 12 percent from the previous dividend and will be payable on February 29, 2024 to shareholders of record as of February 15, 2024. (Source: BUSINESS WIRE)
30 Jan 24. Allison Transmission to Drive Innovation with New Venture Capital Arm. Allison Transmission, a leading designer and manufacturer of conventional and electrified vehicle propulsion solutions and the largest global manufacturer of medium- and heavy-duty fully automatic transmissions for commercial and defense vehicles, today announced it is launching Allison Ventures.
Allison Ventures will strategically invest in, and partner with, start-up and growth-stage companies to foster advancements in commercial-duty mobility and work solutions. The team is focused on advancing Allison’s global strategy in the ever-evolving mobility market. Allison Ventures is not a separate investment fund but embedded within Allison’s corporate team.
“Allison Ventures will allow us to increase our innovation pipeline in support of industry technology advancement across commercial-duty mobility and work solutions to further our mission to Improve the Way the World Works,” said Todd Bradford, Vice President, Strategy, Business and Corporate Development, Allison Transmission.
The Allison Ventures team will focus on technologies that will shape the future of commercial-duty mobility and work solutions. Initial areas of interest to include new technologies and business model innovations related to connectivity, digitization, automation, sustainability, electrification, manufacturing and operations. (Source: BUSINESS WIRE)
30 Jan 24. Amphenol Corporation to Acquire CIT Business From Carlisle.
Transaction highlights:
- To acquire Carlisle Interconnect Technologies for $2.0bn in cash
- Adds leading capabilities in harsh environment interconnect solutions
- Broad product portfolio highly complementary to Amphenol’s existing interconnect solutions
- Accelerates long-term growth in the commercial air, defense and industrial markets
- Expected to be accretive in the first full year after closing
Amphenol Corporation (NYSE: APH), a leading global provider of high-technology interconnect, antenna and sensor solutions, today announced a definitive agreement to acquire the Carlisle Interconnect Technologies (“CIT”) business of Carlisle Companies Incorporated (NYSE: CSL) for $2.025 bn in cash, subject to customary post-closing adjustments.
CIT is a leading global supplier of harsh environment interconnect solutions primarily to the commercial air, defense and industrial end markets, and is expected to have 2024 sales and adjusted EBITDA margin of approximately $900m and 20%, respectively. The company’s wide range of products including wire and cable, cable assemblies, contacts, connectors and sensors are highly complementary to Amphenol’s existing interconnect and sensor solutions.
“We are excited to welcome CIT’s approximately 6,000 talented employees to the Amphenol family,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt. “CIT’s highly engineered harsh environment interconnect solutions will allow us to deliver a more comprehensive technology solution for the increasingly complex applications of our customers in harsh environment markets. We look forward to benefiting from this enhanced position with these important customers in the commercial air, defense and industrial markets long into the future. In addition, we are excited by the possibilities created through the combination of Amphenol’s strong operating discipline and CIT’s advanced capabilities. We look forward to working together with CIT’s experienced management team to drive superior operating performance for the business as part of Amphenol. The addition of CIT represents another step forward for our long-term and successful acquisition program, which we believe will continue to create value for the Company long into the future.”
Assuming a continuation of current economic conditions, CIT is expected to be accretive to Amphenol’s earnings per share in the first year post closing, excluding acquisition-related costs. The acquisition of CIT will be financed through a combination of cash on hand as well as the Company’s existing credit and commercial paper facilities. The transaction is expected to be completed by the end of the second quarter of 2024 and is subject to certain regulatory approvals and other customary closing conditions.
Advisors
Evercore is serving as Amphenol’s financial advisor for the transaction and Latham & Watkins, LLP is acting as its legal advisor. (Source: BUSINESS WIRE)
30 Jan 24. Forcepoint Federal Rebrands as Everfox to Reflect New Era of Defense-Grade Cybersecurity. Forcepoint Federal announced today that it has rebranded as Everfox to reflect its next chapter as a trailblazer in developing and delivering defense-grade cybersecurity technology. Under the new name and brand identity, Everfox will build on Forcepoint Federal’s 25-year heritage of innovation and unwavering dedication to its customers and the critical missions they serve.
“Everfox will continue to protect government, critical infrastructure and regulated industries against the most complex cyber challenges across the globe,” said Sean Berg, CEO, Everfox. “We’re accelerating investment across our industry-leading solutions in cross domain, cyber threat protection and insider risk technologies; deepening our relationships with our customers and partners; and expanding our capabilities to protect even more of what matters most around the world. We are entering 2024 with tremendous momentum, welcoming several new additions to our leadership team, beginning an exciting partnership with Microsoft, and celebrating two industry award wins for our Zero Trust CDR solution – and we’re just getting started.”
Under Sean’s leadership, Everfox has made several additions to its leadership team, including newly-appointed Chief Financial Officer, Trish Haney; Chief Revenue Officer, Shaun Bierweiler; Chief Human Resources Officer, Karen Clark; Chief Legal Officer, James Wallace; and Chief Information Security Officer, Joseph Bell.
With its recently-announced partnership with Microsoft, Everfox will integrate its industry-leading cross domain solution technology into Azure’s cloud services offering for the U.S. Government. Through this partnership, Everfox and Microsoft will develop and deploy new cloud offerings for federal agencies that deliver on-demand, multi-level cloud desktop services.
Everfox’s Zero Trust Content Disarm and Reconstruction (CDR) solution was recently named Cyber Defense Magazine’s “Most Innovative Content Disarm and Reconstruction solution” for its Top InfoSec Innovator award, and “Best Zero Trust Cyber Solution” for American Security Today’s 2023 ASTORS awards, reflecting Everfox’s legacy of innovation and capabilities that defend against the most complex cybersecurity challenges.
Everfox will operate out of its headquarters in Herndon, Virginia, as well as four other locations in Champaign, Illinois; Richardson, Texas; Salt Lake City, Utah; and Malvern, United Kingdom.
To learn more about Everfox, formerly Forcepoint Federal, please visit www.everfox.com or meet the team at AFCEA West Conference and Exhibition and AFCEA’s Rocky Mountain Cyberspace Symposium this February.
About Everfox
Everfox, formerly Forcepoint Federal, has been defending the world’s most critical data and networks against the most complex cyber threats imaginable for more than 25 years. As trailblazers in defense-grade, high-assurance cybersecurity, Everfox has led the way in delivering and developing innovative cybersecurity technology. (Source: BUSINESS WIRE)
31 Jan 24. Arlington Capital Partners Announces Launch of Verus Aerospace, a Manufacturer of Complex Aerostructure Components for the Aerospace, Defense and Space Industries. Arlington Capital Partners (“Arlington”), a Washington, D.C.-area private investment firm specializing in government regulated industries, today announced the launch of Verus Aerospace (“Verus” or the “Company”), a newly formed brand emerging as one of the industry’s largest pure play structures platforms focused on next-generation programs for the aerospace, defense and space industries. Verus is comprised of existing Arlington-backed companies Perfekta, Precision Machine Works, Arden Engineering, Premier Processing and Quality Forming.
Headquartered in Anaheim, CA and with over 500,000 square feet of manufacturing space, Verus offers machining platforms reaching from 120” to 720” and specializes in the manufacturing of long and large, highly complex components and assemblies with hard-to-machine materials and geometries for mission-critical applications. The Company’s core competencies include high-speed machining, hard metal manufacturing, large monolithic structures, deep pocket machining and special processing including metal finishing coatings, non-destructive testing, priming and painting. Verus Aerospace operates three integrated centers of excellence in California, Kansas and Washington, strategically located near major customers, which provides the ability to collaborate closely with customers from project inception.
The creation of Verus as a standalone platform investment within Arlington’s portfolio will enable the Company to focus exclusively on aerostructures and redefine the standards of excellence and innovation in the field across commercial, defense and space applications. As the aerospace, defense and space landscapes evolve, Verus will emerge as a dynamic player, ready to shape the future of aerostructures with unwavering dedication and expertise.
Peter Manos, a Managing Partner at Arlington Capital Partners, said, “We are excited about the launch of Verus Aerospace, signifying an initiative to fortify our focus and position in the aerospace and defense industry. We have created one of the largest pure-play manufacturers of ultra complex and large aerostructure components in the industry. Our commitment to a long-term investment strategy, through both organic investments and acquisitions, enables Verus to better serve its customers with broad capabilities as a scaled and well-capitalized player in the aerostructures market.”
Brian Bentley, CEO of Verus added, “Verus Aerospace is uniquely positioned as one of the few remaining private aerostructure businesses of scale. Our engineering prowess, vertical integration and state-of-the-art capabilities enable us to provide significant cost advantages and support our customers throughout the product lifecycle.”
About Verus Aerospace
Verus Aerospace is a leading supplier of large and highly complex aerostructures components. Headquartered in Anaheim, CA, Verus Aerospace operates with a team of over 500 dedicated professionals committed to delivering excellence in aerospace precision manufacturing. Verus is a pure play structures platform with a focus on core capabilities, customer satisfaction and innovation in the aerospace and defense industry. For more information, visit www.verusaerospace.com
About Arlington Capital Partners
Arlington Capital Partners is a Washington, D.C. area private investment firm specializing in government regulated industries. The firm partners with founders and management teams to build strategically important businesses in the aerospace and defense, government services and technology, and healthcare sectors. Since its inception in 1999, Arlington has invested in over 150 companies and is currently investing out of its $3.8bn Fund VI. For more information, visit Arlington’s website at www.arlingtoncap.com and follow Arlington on LinkedIn. (Source: BUSINESS WIRE)
30 Jan 24. IFS reports industry leading results with 33% software revenue growth for 2023.
- Recurring revenue up 35% YoY
- Cloud revenue up 46% YoY as new and existing customers move to IFS cloud
IFS, the global cloud enterprise software company, today announced its financial results for the full year ending 31 December, 2023. The company posted exceptional results with software revenue growth at 33 percent year-on-year and cloud revenue up 46 percent as new and existing customers accelerate the move to IFS Cloud, a market leading single cloud platform, allowing customers to access the latest Industrial AI capabilities most critical to our focus industries. IFS is consistently recognised internationally as a market leader in FSM, EAM, ERP and ESM.
2023 continued to see the unfolding of unpredictable economical and geo-political disruption. Despite this, the IFS strategy to stay focused on its core industries and to extend its Industrial AI capabilities with IFS.ai, have yielded very strong results in all regions, leading to another year of strong double-digit revenue growth for the company. The results, which continue to outperform the market, point to the company’s agility, scale, and ability to execute globally for its customers.
IFS product innovation in IFS Cloud and the inherent IFS.ai capabilities are in demand from existing customers and has attracted a large number of new customers choosing IFS over industry peers. Long standing customers such as Cimcorp as well as new customers such as Tele 2, Mattr, NOTE AB, Havfram, Van Oord, TÜV NORD, Stannah Lifts are turning to IFS as their long-term partner to transform their business models, improve resilience, increase operating efficiency, and deliver competitive advantage across their people, assets, and services.
IFS CEO Mark Moffat commented: “This time last year we reported five years of strong consecutive double-digit growth. I am hugely proud that the IFS team has continued this trend and also delivered an outstanding 2023. We will shortly reach a very significant landmark for IFS with $1bn ARR representing a strong vote of trust from our customers.” Moffat added: “Our core IFS value of being customer obsessed is paying off and with IFS.ai we are creating further productivity and automation opportunities for them while adding a critically important dimension to our proposition. We have delivered AI capabilities to our customers for a number of years now, and with IFS.ai we are driving AI across all our products effectively democratising AI for all of our customers’ users.” Moffat concluded: “2024 will be a continuation of our strategy to deliver industry specific and market leading capabilities in FSM, EAM, ERP & ESM which includes investing in M&A. For our customers, I am proud to say that IFS moves as one, creating value faster and delivering our best to our customers when it matters most, at the Moment of Service™.”
IFS Chief Financial Officer, Matthias Heiden, added: “2023 has delivered results that we are very proud of. ARR is clearly an important long-term performance metric, and our 26 percent growth in ARR YoY was driven by new logo acquisitions, significant expansion within the Install Base, and low churn. All of which points to a very healthy mix of revenue and consistent execution across the entire business.” Heiden concluded: “We saw very healthy double-digit growth in all our regions, with a notable outstanding performance in our North American and APJ, ME&A regions. This combined with the performance of our ecosystem is clear evidence that our focus on product and the industries we serve are delivering the value our customers need globally.”
Financial and Operational Highlights for FY 2023, growth YoY:
- FY2023 software revenue was EUR 853m, an increase of 33 percent versus 2022
- FY2023 recurring revenue was EUR 810m, an increase of 35 percent versus 2022
- FY2023 net revenue was EUR 1.062m, an increase of 30 percent versus 2022
- FY2023 annual recurring revenue (ARR) up 26 percent Year-on-Year
Some key milestones for IFS in 2023 included:
- In February, IFS marked the 25th anniversary of its operations in Sri Lanka
- In March, In the United States, IFS launched a collaboration with the Big Ten Conference, a pre-cursor to the strategic partnership launched in late 2023
- In May, IFS released it latest sustainability report, a detailed account of the IFS approach, priorities, targets, and initiatives across environmental, social and governance (ESG) topics
- In May, IFS launched the first of its twice-yearly IFS Cloud releases in 2023, with updates enabling customers to enhance business agility and build resilience
- In May, June and October, IFS held 9 global IFS Connect events with over 3,000 local prospects, customers, and partners in attendance
- In June, IFS acquired Poka, the market-leading Quebec-based provider of a connected worker platform
- In October, IFS added extra capabilities to https://www.ifs.com/ifs-ai
- In November, IFS launched the second of its twice-yearly IFS Cloud releases
- IFS began several landmark brand partnerships, including a strategic partnership with AJ Foyt in June and was named the first-ever official technology partner of the Big Ten Conference in October
- Throughout 2023 IFS appointed several key executives across its global operations, including Matthias Heiden as CFO, Belinda Finch as CIO, Max Robberts as COO
Additional highlights:
- IFS added 243 new logos globally and across its core industries, including Mattr, NOTE AB, Havfram, Tele2 AB, Van Oord, TÜV NORD, Stannah Lifts, Enercare, My Dentist, and City of Tallahassee
- The IFS partner Ecosystem delivered some equally strong results with a 10% growth YoY in partner contribution to 41%. The impact was seen in our Net New business as well as in pipeline growth and number of deals closed by partners with North America and APJ, ME&A regions leading across multiple KPIs
- IFS is also extending its partnerships with Global System Integrators with a particular focus on strategic markets: Accenture for Utilities & Resources, Telco, Arcwide for Manufacturing, Services, Construction & Engineering, Capgemini for Construction & Engineering, Manufacturing, Energy, Utilities & Resources, and PwC for Energy, Utilities & Resources, Construction & Engineering
- IFS extended its leader status in several core areas:
o IDC MarketScape: Worldwide Field Service Management Solutions, 2023-2024 – IFS a Leader
o IDC MarketScape: Worldwide Service Life-Cycle Management Platforms 2023–2024 – IFS a Leader
o Gartner Voice of the Customer for Cloud ERP for Product-Centric Enterprises – IFS a Customers’ Choice
o IDC MarketScape: Worldwide Field Service Management Solutions for Utilities, 2023-2024 – IFS a Leader
o IDC MarketScape: Worldwide Service Parts Planning Applications, 2023 – IFS a Leader
o Nucleus Research Enterprise ERP Value Matrix – IFS a Leader
- IFS collected a significant number of awards:
o Business Intelligence Awards: Sustainability Winner, March 2023, Business Intelligence Awards: Artificial Intelligence Award Winner, March 2023, HotTopics 100 CMOs: Oliver Pilgerstorfer, March 2023, Eventex Conference Award: Unleashed, May 2023, Eventex B2B Event Winner: Unleashed, May 2023, The Software Report: Top Software Company 2023, August 2023, ERP Today Awards Outstanding Leadership: Mark Moffat, September 2023, Future Enterprise Awards: Best Cloud Enterprise Software, October 2023, ICT Leadership Awards: Enterprise Software Vendor of the Year, October 2023, Boomi’s 2023 EMEA Partner of the Year Award Winner, November 2023, Ecovadis: ESG/CSR Silver Medal, November 2023, Construction Computing Awards: Best Asset Management Software, November 2023. Learn more at www.ifs.com/company/financial-results/
30 Jan 24. Contract momentum builds at Kromek. Radiation detection technology company continues to win contracts from the medical imaging and nuclear markets. It has takeover potential too
- First half cash loss narrows from £2.7m to £0.1m
- Analysts push through material profit upgrades
Sedgefield-based Kromek (KMK:5.8p), a radiation detection technology company, expects to report record revenue and return to cash profitability in the 12 months to 30 April 2024.
The directors’ confidence is not misplaced if this week’s interim results are anything to go by. In the six-month period, Kromek won £8mn of orders including a contract worth $1.4m (£1.1m) from a new original equipment manufacturers (OEM) customer, an established player in the medical imaging sector in Asia. Kromek will supply its cadmium zinc telluride (CZT)-based detector modules for use in the company’s next-generation single-photon emission CT (SPECT)-based medical imaging scanners, and has won another four medical imaging orders from existing clients in recent weeks.
In addition, Kromek has entered a collaboration agreement with a global blue-chip technology solutions provider that has over 100,000 customers and commenced work on another collaboration agreement (with Analogic Corporation and a tier-one OEM) to develop CZT-based detectors in their imaging scanners.
CZT detection solutions offer superior sensitivity, higher energy resolution and better imaging performance capabilities that enable the earlier detection of diseases, such as cancer, thereby improving patient outcomes. As the only independent developer and producer of CZT-based detection systems, Kromek’s technology has strategic value to OEMs in the medical imaging space, hence the contract momentum. It also has takeover potential as rival Redlen Technologies was acquired by Canon for $290mn, or a multiple of 20 to 33 times its annual revenue, in September 2021. Kromek’s enterprise valuation of £39.5m ($50m) is only two times the group revenue and 13 times 2024-25 cash profit estimates.
Kromek’s chemical, biological, radiological and nuclear (CBRN) detection business is securing multi-m dollar orders, too, including one from a major defence corporation. That’s hardly surprising given the heightened geopolitical tensions and threat of warfare. Indeed, ahead of the results, Kromek announced a £1.4mn EU-funded order for its CZT-based dirty-bomb detectors, which protect buildings and critical infrastructure against nuclear threat. The group also has multi-year contracts with both UK and US Government agencies to develop biological threat detection systems.
Analysts at house broker Cavendish have taken note, upgrading their full-year cash profit estimate by a third to £1.2m on record revenue of £21mn, and raising their 2025 cash profit estimate by 82 per cent to £3.1mn on revenue of £25.5mn. Importantly, 84 per cent of this year’s revenue estimate is either contracted or awarded, with the balance underpinned by a strong bid pipeline of opportunities.
The shares are up 17 per cent since my last article (‘A technology winner in an uncertain world, 1 November 2023), and offer material upside to the fair valuation targets of Equity Development (26p) and Cavendish (28p, upgraded from 25p). Buy. (Source: Investors Chronicle)
30 Jan 24. Kromek Group plc (“Kromek” or the “Group”) Interim Results .
Kromek Group plc (AIM: KMK), a leading developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, announces its unaudited interim results for the six months ended 31 October 2023. Financial Highlights
- Revenue increased to £7.1m (H1 2023: £6.8m)
- Gross margin improved to 54.2% (H1 2023: 40.4%)
- Adjusted EBITDA loss reduced to £0.1m (H1 2023: £2.7m loss)*
- Loss before tax reduced to £3.5m (H1 2023: £5.7m loss)
- Cash and cash equivalents at 31 October 2023 were £3.7m (30 April 2023: £1.1m)
- Net cash used in operating activities substantially reduced to £1.6m (H1 2023: £4.0m)
- Refinancing of its debt facility with new £5.5m secured term loan in September 2023
- Equity fundraise of £8m (gross) in May 2023
- Remain on track to deliver significant revenue growth and positive EBITDA for the year to 30 April 2024 *A reconciliation of adjusted EBITDA can be found in the Financial Review. Operational Highlights Advanced Imaging
- Commenced significant collaboration agreements with: o A tier 1 OEM to provide CZT-based detectors for use in the customer’s advanced medical imaging scanners o Analogic Corporation (“Analogic”) to develop CZT-based detectors for photon counting computed tomography (“CT”) applications in medical imaging and security screening
- New collaboration agreement entered, post period, with a global blue-chip technology solutions provider to develop CZT-based detectors for photon counting CT applications in medical imaging
- Received a $1.4m contract from a new Asia-based OEM customer to develop and supply CZT-based detectors for single-photon emission computed tomography (“SPECT”) applications
- Launch by Spectrum Dynamics Medical (“Spectrum Dynamics”), a key customer, of the latest addition to its next generation digital SPECT/CT imaging portfolio, the VERITON-CT 300, using Kromek’s detectors CBRN Detection
- Kromek’s nuclear radiation detection solutions continued to be deployed by global homeland defence and security forces to protect critical infrastructure, events and urban environments from the threat of ‘dirty bombs’
- Received over $1m in new orders for nuclear security products, including from a new customer that is a substantial global defence corporation
- Awarded a $1.5m contract in Asia for a new product in the civil nuclear market
- Received a £1.4m contract, post period, for the supply of D3M detectors for use in the rescEU stockpile being developed by the European Commission Biological-Threat Detection
- Received a $5.9m contract from the US Department of Homeland Security for the development, under a four-year programme, of technologies focusing on an agent agnostic bio-detection system
- Progressed development of a biological-threat detection system under previously awarded contract with a UK government department 2 Manufacturing and IP
- Sustained progress in improving yield and cost efficiency in CZT crystal growth and detector manufacturing
- One new patent filed and three granted during the period
Dr Arnab Basu, CEO of Kromek, said: “I am pleased to report another period of growth for Kromek as we continued to deliver on our long-term agreements and development programmes as well as win new orders. We advanced our strategy by signing a significant collaboration agreement with a global bluechip technology solutions provider in advanced imaging and through expanding our customer base in CBRN detection, including securing our first order with a substantial global defence corporation. At the same time, we heavily focused on managing our cost base and increasing the efficiency within our business, which remains a key priority. “Looking ahead, in line with normal seasonality, we will be second half weighted and remain on track to deliver record revenues for full year 2024 and positive EBITDA. We continue to operate in substantial markets and are receiving high demand for our products that are being used every day to save people’s lives – from the detection of nuclear threats in Ukraine, to cancer in hospitals around the world. As a result, the Board continues to look to the future with confidence.”
29 Jan 24. Merrill Technologies Group Acquired by Arlington Capital Partners. Charter Capital Partners, a Grand Rapids, Michigan-based investment bank, announced that its client, Merrill Technologies Group, has been acquired by Arlington Capital Partners, a Washington, D.C.-area private equity firm. The transaction was led by Charter team members Mike Brown, Partner and Managing Director, Zach Wiersma, Vice President, AJ Ebels, Vice President, and Keegan Ensing, Analyst.
Merrill Technologies Group, a leading manufacturer of large metal parts and structures, providing design, engineering, machining, fabrication, and integration solutions for defense, aerospace and industrial markets, was founded in 1968 by Gary and Mary Kay Yackel and was most recently owned and operated by Bob and Jeff Yackel.
“I’m extremely proud of this outcome and very happy for both the owners and the management team. They have partnered with an outstanding sponsor,” said Brown. “Charter has been an advisor to Merrill for more than 10 years, so we were able to witness firsthand the evolution of the Company into a truly world-class defense manufacturer. Bob, Jeff, and Mike should be very proud of all of their hard work, and I’m excited to watch the business through its next phase of growth.”
“The Merrill team has built a fully-differentiated business through design, machining, fabrication, and integration of large, fabricated metal structures and is a leader in the defense industry,” added Wiersma. “The strategic vision and sound thesis for continued investment in the defense industrial base, as shared by both Merrill and Arlington, became apparent during the first meeting between the principles of both firms. We’re thankful to the Yackels and the entire Merrill team for trusting us on this important transaction.”
In conjunction with the acquisition, Arlington announced the formation of Keel Holdings, a new platform established to be a premier supplier of fabricated structures for the highest priority programs within the Navy, Army, and Air Force. The Company was formed through the combination of existing Arlington portfolio company Pegasus Steel and the newly completed acquisitions of Metal Trades, Inc. and Merrill Technologies Group.
Brian Carter, CEO of Keel, said “Keel will play a pivotal role in delivering significant capability growth to the defense industrial base in the U.S. The Company’s efficient and effective approach positions us to increase the speed of delivery for the country’s highest priority programs. I look forward to working alongside the talented teams from Pegasus, Metal Trades and Merrill, whose hard work and expertise have laid the foundation for Keel’s emergence as a formidable force in the defense industry.” (Source: PR Newswire)
29 Jan 24. Airbus U.S. Space & Defense, Inc. announced completion of a deal with Eutelsat OneWeb to purchase its 50% share of the Airbus OneWebSatellites (AOS) joint venture. Airbus is now the sole owner of AOS and the satellite manufacturing facility in Merritt Island, Florida.
The new structure is expected to provide maximum efficiency and increased competitiveness for commercial, institutional and national security space customers.
“This agreement furthers our position as a market leader in the small satellite constellation business, building on our successful partnership with OneWeb,” said Robert Geckle, Chairman and CEO, Airbus U.S. Space & Defense, Inc. “We will continue mass producing small satellites for our customers and are excited for what the future holds for us on Florida’s Space Coast as we move forward,” he added.
Airbus U.S. Space & Defense recently retooled the Merritt Island factory to accomodate the Arrow450 production line and is starting an expansion project to meet increased demand for small satellites from commercial and government customers deepening the company’s presence in Florida.
The Airbus OneWeb Satellites joint venture, established in 2016, built more than 600 satellites at the rate of two per day for the OneWeb first generation constellation, currently operating on-orbit.
29 Jan 24. Rcapital acquires aerospace and defence engineering business FGP Group, securing over 200 jobs in Dorset.
Private investor, Rcapital, has today completed the acquisition of aerospace and defence engineering business, FGP Group. The deal will mean that over 200 jobs in Dorset are protected.
The Group comprises Weymouth based FGP Systems Limited, a precision engineering business which provides very high tolerance machining, turning and fabrication services to blue chip aerospace and defence customers, and FGP Lufton Ltd which is based in Yeovil and manufactures a portfolio of parts for the aerospace sector. The Group also includes a successful surface treatments and coatings business, Ramp Surface Coatings.
Rcapital acquired the business from 126 individual shareholders who were participants in the Cyrus Secured Loans Precision Engineering EIS Fund. The transaction was delivered via a solvent sale of the shares in FGP Systems Limited and Heartland Engineering Limited.
FGP boasts a number of blue chip customers, including Honeywell, Collins Aerospace, Martin Baker and Curtis Wright. It also participates in several flagship aerospace programmes including Airbus A350 and A320, Boeing 737 and 787, as well as major defence platforms including the Eurofighter and F35.
The existing management team will remain in place and will be supported by Rcapital which brings extensive operational, financial and sector expertise. It will work with the business to stabilise trading and position it for growth.
Rcapital is uniquely placed to support the business in delivering its turnaround, thanks to its strong track record in the aerospace, defence and precision engineering sectors with its existing investments in Bromford Precision Solutions, Trac Precision Solutions, Nasmyth Group and Surface Technology International.
Sam Duberley, Investment Manager at Rcapital, said: “FGP Group is a solid business which boasts a number of blue chip clients and has a role in several key aerospace projects. Rcapital has an extremely strong track record in the sector and FGP Group complements a number of our other investments. We are looking forward to working with the management team to strengthen the business and secure long-term growth.”
Rcapital was advised Pinsent Masons (legal – banking), Browne Jacobson (legal – corporate), Pembroke Briggs (valuation), Verlingue (insurance), and Lightbulb (credit insurance). FGP Group was advised by Alvarez & Marsal (refinancing), Trethowans (legal), and RSM (performance improvement).
29 Jan 24. NMi Group acquires TrustCB. NMi Group, a global leader in mission-critical Testing, Inspection, Certification, and Calibration (TICC) services, proudly announces the transformative acquisition of TrustCB in the Cyber Security domain. This strategic move solidifies NMi Group as the premier provider of certification services for the evolving landscape of digitally integrated and smart devices.
Now part of NMi Group, TrustCB is the exclusive commercial Certification Body for the globally recognized Common Criteria cybersecurity standard, working with globally leading clients and capable of certifying up to the highest levels (EAL7). This strategic alignment reinforces NMi Group’s commitment to a comprehensive approach, integrating legal metrology and Common Criteria standards to ensure the overall reliability and integrity of smart industrial devices.
A key emphasis of the acquisition is TrustCB’s expertise in translating Common Criteria standards via SESIP to the Internet of Things domain. This strategic move further fortifies NMi Group’s dedication to “Measure Tomorrow” by synergizing precision in measurements with increasingly requested robust cybersecurity standards.
In legal metrology and Common Criteria, coexistence is imperative to guarantee a holistic approach to the functionality, accuracy, and security of devices such as smart meters, smart grids, and other smart industrial devices. Manufacturers and operators navigating these digital landscapes must adhere to both legal and cybersecurity regulations, ensuring compliance with standards for accuracy and security.
Expressing enthusiasm about the strategic move, Yvo Jansen, NMi Group CEO, states, “Acquiring TrustCB fortifies our commitment to excellence in smart industrial devices. By integrating accuracy in measurements with robust cybersecurity standards, we ensure regulatory compliance and enhance the overall reliability of our solutions.”
Echoing this sentiment, Wouter Slegers, TrustCB CEO, adds, “Joining forces with NMi Group is a strategic move safeguarding the TrustCB Common Criteria and dedicated scheme certification business even further. In practical ways, nothing changes: TrustCB stays the trusted, responsive partner as a certification body. This synergy amplifies our commitment to precision and security in smart industrial devices, advancing the global standard for regulatory compliance and elevating the trustworthiness of our certified solutions.” Wouter will continue to lead TrustCB, ensuring solid independence and sustained excellence in Common Criteria certification.
This acquisition marks a pivotal milestone in NMi Group’s Build and Buy strategy, solidifying its position as an industry leader in legal and applied metrology services for smart industrial devices.
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SPX CommTech, part of SPX Technologies Inc, innovates specialised technologies within the Radio Frequency (RF) spectrum to ensure a smarter, more secure future for all. Formed by TCI and ECS, SPX CommTech’s Battlespace portfolio enables defence and security teams to detect, defeat and exploit RF signals to enhance communications intelligence (COMINT) and counter unmanned aerial systems (Counter-UAS). Additionally, its Tactical Data Link portfolio allows intelligence gathering agencies, special forces, emergency response, and security teams to securely and reliably transfer video and data between enabled-aircraft and ground teams over long distances for airborne Intelligence, Surveillance, Reconnaissance (ISR). For more information visit www.tcibr.com and www.enterprisecontrol.co.uk
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