Aerospace & Defense Acquisitions in 2016

Advanced Integration Technology (AIT) announced an investment to acquire Nova-Tech Engineering, a Lynnwood, Washington-based designer and integrator of aerospace assembly automation, materials handling and friction-stir welding equipment. Nova-Tech will operate as a distinct business line within AIT, expanding AIT’s aerospace automation capabilities and international footprint; financial terms were not disclosed.

ParkerGale portfolio company Aircraft Technical Publishers (ATP) has acquired CaseBank Technologies, Inc., a developer of integrated diagnostic, troubleshooting and fault-detection solutions for the aviation, aerospace and defense markets. The deal expands ATP’s diagnostic and proactive fault-detection capabilities, enabling a more integrated suite of maintenance tools and services for MROs and operators.

Mercury Systems agreed to acquire CES Creative Electronic Systems, S.A., a Geneva-based provider of safety-certifiable mission computing and avionics subsystems, for approximately $38 million. The deal (expected to close in Mercury's fiscal Q2 ending Dec. 31, 2016) expands Mercury's mission-computing and safety-critical avionics capabilities and broadens its addressable markets in commercial aerospace and defense globally.

Anritsu Corporation acquired Azimuth Systems, Inc., a provider of RF channel emulation and real-world wireless performance test solutions, in a deal announced September 29, 2016. Azimuth will become a subsidiary of Anritsu as the buyer integrates Azimuth's IP and product portfolio to expand its 5G/IoT wireless test and measurement capabilities; the purchase price was not disclosed.

Acorn Growth Companies has acquired Raisbeck Engineering Inc., a Seattle-based developer and manufacturer of aircraft performance improvement systems. Participating financing and investment partners included Congruent Investment Partners, Independent Bankers Capital Funds, Omega Capital and Arvest Bank. Founder James D. Raisbeck will remain as chairman and the company will continue to operate under its brand; financial terms were not disclosed.

Odyssey Investment Partners has acquired Aero Precision Industries LLC from Greenwich AeroGroup, a portfolio company of Berkley Capital (W. R. Berkley). Aero Precision, headquartered in Livermore, California with additional locations in San Francisco, Austin and Japan, is a distributor of military and commercial aerospace parts and provides MRO and repair/overhaul services; the deal was announced in mid-2016.

Air T, Inc. (NASDAQ: AIRT) completed an asset purchase of Contrail Aviation Support, Inc., a Verona, Wisconsin-based supplier of surplus and aftermarket commercial jet engine components. The business was acquired by a newly formed Air T subsidiary (New Contrail), with Joseph Kuhn appointed CEO and all Contrail employees retained to continue operations in Verona.

Randal Bellestri has acquired Models & Tools Holdings, Inc., a Shelby Township, Michigan-based designer and manufacturer of turnkey tooling systems for the aerospace and defense industries. Models & Tools was previously a portfolio company of Altus Capital Partners; Angle Advisors served as the exclusive advisor on the transaction.

The Loar Group, an affiliate of private equity firm JLL Partners, has acquired General Ecology, Inc., a designer and manufacturer of drinking water purification systems based in Exton, Pennsylvania. General Ecology supplies Versa‑Pure systems to commercial and business aircraft and markets consumer/portable systems under the Seagull and First Need brands; approximately 75% of its revenue is aftermarket/replacement and two‑thirds of revenue is from aerospace end markets.