Aerospace & Defense Acquisitions in 2020

GracoRoberts, a specialty aerospace chemicals distributor backed by private equity sponsor CM Equity Partners, closed the acquisition of Able Aerospace Adhesives on December 30, 2020. The add-on expands GracoRoberts’ international footprint—particularly in the Asia-Pacific region—and strengthens its military and MRO capabilities and value-added services.

On December 28, 2020, private equity firm American Industrial Partners (AIP) invested $50 million (a combination of loan and equity) in Orizon Aerostructures to provide additional liquidity and support the company’s growth and long-term strategy. The capital will help Orizon expand capabilities across its advanced machining, processing and assembly operations for commercial and defense aerostructure platforms.

An investment affiliate of J.F. Lehman & Company has acquired CTS Engines, LLC and CTS Testing, LLC from Platte River Equity. CTS, a Fort Lauderdale, Florida-based independent provider of jet engine MRO and testing services serving air cargo, commercial and military customers, will be supported by JFLCO's sector expertise and capital to accelerate growth.

Vectrus, Inc. agreed to acquire Zenetex for approximately $112 million (net of $11 million of expected tax benefits) to accelerate its converged infrastructure strategy and broaden capabilities in engineering, logistics, MRO, and security for defense and intelligence clients. The acquisition expands Vectrus' access to Intelligence Community and foreign military customers; Zenetex is headquartered in Herndon, Virginia and had roughly $200M in revenue with a backlog of over $700M.

Alpine 4 Technologies, Ltd. entered into a binding LOI to acquire Vayu (U.S.), Inc., a maker of hybrid VTOL autonomous aircraft, in a reverse triangular merger that will make Vayu a wholly owned subsidiary. The deal adds VTOL aircraft, autopilot software and expanded capabilities to Alpine 4's aerospace holdings (complementing Impossible Aerospace) and is intended to accelerate medical delivery, infrastructure inspection and other commercial UAV opportunities; Vayu CEO Daniel Pepper will remain in place.

The SCHLEIFRING Group, a subsidiary of Wegmann Group, has acquired Electro-Miniatures Corporation (EMC), a Moonachie, New Jersey-based maker of slip ring assemblies. The acquisition expands SCHLEIFRING's technical capabilities and geographic reach into North America; transaction terms were not disclosed.

Jet Parts Engineering LLC, a portfolio company of Vance Street Capital, has acquired AeroSpares, Inc., a designer and seller of proprietary FAA-approved aftermarket PMA parts, particularly pressure switches. The add-on expands JPE's catalogue of proprietary PMA parts and engineering capabilities to better serve commercial and cargo airlines and MRO customers; financial terms were not disclosed.

Monocle Acquisition Corporation (a SPAC) completed a business combination with Leonard Green & Partners‑backed AerSale Corporation, taking AerSale public on the Nasdaq under the ticker ASLE. The transaction provided AerSale with cash and equity consideration (implied enterprise value ≈ $430M at signing) to strengthen its balance sheet and support expansion of its MRO, asset purchase, and engineered solutions initiatives while existing shareholders, including Leonard Green & Partners, retained a significant equity stake.

Moog Inc. has acquired Genesys Aerosystems from McNally Capital and the Genesys management team. Genesys, a developer and manufacturer of integrated avionics systems (flight displays, radios, autopilots, sensors), will expand Moog's avionics and aircraft systems capabilities as part of Moog's precision control and systems portfolio.

Redwire has acquired LoadPath, a New Mexico–based developer of payload adapters, deployable structures, and thermal products for launch vehicles and satellites; terms were not disclosed. The LoadPath founders will join Redwire as the deal expands Redwire’s space infrastructure and payload accommodation capabilities; the acquisition is an add-on to the PE‑backed Redwire platform formed with support from AE Industrial Partners.

By Light Professional IT Services, a portfolio company of Sagewind Capital, has acquired Raydon Corporation, a Port Orange, Florida-based provider of virtual training and simulation technology for the U.S. Department of Defense. The acquisition expands By Light's modeling & simulation and virtual training capabilities; financial terms were not disclosed and Truist Securities served as Raydon's exclusive financial advisor.

FL Technics, part of Avia Solutions Group, acquired Wright International, a Toronto Pearson–headquartered provider of aircraft line maintenance services, giving FL Technics a foothold in the North American MRO market. Wright International will continue to be led by its founders and will join FL Technics' global network of line- and base-maintenance operations.

Ansys completed the acquisition of Analytical Graphics, Inc. (AGI) for $700 million. The deal brings AGI's mission-driven simulation, modeling and analysis software into Ansys' engineering-simulation portfolio to expand capabilities and accelerate adoption in aerospace, defense and adjacent commercial markets.

Janes has agreed to acquire the Global Platforms & Systems (GPS) defence market analytics business from Avascent. The deal (announced November 2020) brings Avascent’s market analytics capability into Janes’ open-source defence intelligence offerings and is expected to close subject to customary conditions, strengthening Janes’ position in defence market forecasting and analytics.

Kratos Defense & Security Solutions acquired 5-D Systems, Inc., a CMMI Level 3 systems and software engineering firm with offices in the Austin (Round Rock), Texas area and Huntsville, Alabama. The acquisition adds systems/software engineering capability and CMMI pedigree to Kratos’ Unmanned Systems Division and establishes an engineering hub near key DoD customers in the Austin area.

Voyager Space Holdings, Inc. announced its intent to acquire Anchorage-based The Launch Company, a developer of standardized launch-site hardware, ground support equipment, and automated launch processes. The acquisition expands Voyager's vertical capabilities in launch services and ground support, enabling The Launch Company to scale operations and better serve commercial NewSpace and government customers.

Parsons Corporation completed the acquisition of Braxton Science & Technology Group for $300 million (reported as $258 million less the tax asset). Braxton, headquartered in Colorado Springs, Colorado, brings more than 370 employees and expands Parsons' capabilities in satellite operations, ground system automation, flight dynamics, and space cyber for defense and intelligence customers.

Belcan, a portfolio company of AE Industrial Partners, acquired AVISTA, Inc., a provider of safety-critical and mission-critical software engineering services, from TransDigm Group. The acquisition adds systems and software engineering capability to Belcan's offering and expands its Midwest footprint with AVISTA's locations in Platteville, Cedar Rapids and Blaine; AVISTA's management team will join Belcan.

Alpine 4 Technologies entered into a binding merger agreement to acquire Impossible Aerospace, a U.S. developer of long-endurance electric aircraft and drones, in a reverse triangular merger that will make Impossible Aerospace a wholly owned subsidiary. The deal (announced Nov 17, 2020) brings Alpine 4 into the commercial/unmanned aerial vehicle market and retains Impossible Aerospace CEO Spencer Gore to support integration and military/commercial contract pursuits; prior investors in Impossible Aerospace included Bessemer Venture Partners, Eclipse Ventures and Airbus Ventures.

PAE (NASDAQ: PAE) will acquire Metis Solutions Corporation for approximately $92 million in cash, expanding PAE's intelligence analysis, training and program management capabilities for intelligence and defense customers. Metis, headquartered in Arlington, Virginia with more than 450 employees, brings additional contract vehicles and is expected to be accretive to PAE's financial metrics.

McKean Defense Group agreed to acquire Mikros Systems Corporation for approximately $4.6 million in cash, purchasing all outstanding common stock in a merger. The acquisition strengthens McKean's U.S. Navy portfolio by adding Mikros' electronic systems, combat-systems monitoring and diagnostic analytics capabilities to support Littoral Combat Ship programs and other naval sustainment work.

Raytheon Technologies has entered into a definitive agreement to acquire small-satellite manufacturer Blue Canyon Technologies. The acquisition will fold BCT into Raytheon Intelligence & Space and expand Raytheon's capabilities in turnkey small-satellite solutions to serve government, commercial and academic customers.

Pacific Defense, a defense electronics platform backed by HCI Equity Partners and Emerald Lake Capital Management, has acquired Nashua, New Hampshire–based Spear Research. The acquisition adds electronic warfare, signals intelligence (SIGINT/ELINT), RF engineering, advanced signal processing and autonomous networked sensor capabilities to Pacific Defense's portfolio to better serve DoD and select international customers.

AE Industrial Partners (AEI) has acquired Linkware, LLC and PRE, LLC d/b/a Pangiam and will combine the two companies under the Pangiam brand to create an integrated travel and security solutions technology platform. Linkware will continue to serve government customers under its brand while the combined company will offer end-to-end travel security and biometrics-enabled solutions to both commercial and government markets; terms were not disclosed.

DC Capital Partners, a private equity firm based in Alexandria, Virginia, has formed a strategic partnership with Hill Technical Solutions, Inc. (HTSI), a Huntsville, Alabama-based defense engineering and systems-integration firm. The partnership will provide capital and resources to expand HTSI's capabilities and customer base across U.S. government defense programs; Duff & Phelps and Holland & Knight advised HTSI, while Latham & Watkins advised DC Capital.

Arlington Capital Partners announced the formation of BlueHalo by combining its portfolio company AEgis Technologies (including prior integrated acquisitions Excivity and EMRC Heli) with newly acquired Applied Technology Associates and Brilligent Solutions. The merged company, BlueHalo, will provide advanced engineering and technology solutions across space, directed energy, missile defense, C4ISR, and cyber for the national security community.

Redwire has acquired Roccor, a Longmont, Colorado manufacturer of deployable booms, structures, antennas, thermal products and solar arrays for small satellites. Terms were not disclosed; the deal adds Roccor’s flight‑proven hardware to the Redwire platform (a company formed and backed by private equity firm AE Industrial Partners) to expand Redwire’s space infrastructure capabilities.

Precision Aviation Group (a portfolio company of GenNx360 Capital Partners) has acquired Brazil-based EFIX Aviation Support, an ANAC- and EASA-certified MRO provider based in São José dos Campos. The add-on expands PAG's MRO capabilities (landing gear, hydraulic/pneumatic, avionics, accessories) and strengthens its footprint and in-country support in Brazil and broader Latin America.

FDH, a portfolio company of Audax Private Equity, has acquired Société AHE Inc., a Montreal-based distributor of aerospace hardware focused on the rotorcraft market. The add-on expands FDH's rotorcraft product offerings and global reach and is the company's seventh acquisition (fifth since Audax's 2017 investment).

Broadtree Partners LLC acquired Seanair Machine Co. Inc., a family-run precision aerospace parts manufacturer based in Farmingdale, New York, in partnership with AE Industrial Partners Structured Solutions I, LP and with financing support from Live Oak Bank. The company's founders Laura and Thomas Nawrocki will remain as consultants while Avi Das was named CEO as Seanair is rebranded Seanair, LLC to support growth and further serve aerospace and defense customers.

Lockheed Martin signed a definitive agreement to acquire a portion of Integration Innovation Inc. (i3), specifically i3's hypersonics strike and defense portfolio. The asset is expected to close in about 30 days, and upon closing the hypersonics portfolio will be managed by Lockheed Martin's Space business area to expand hypersonic-specific capabilities for government and commercial customers.

Honeywell has acquired privately held Rocky Research, a Boulder City, Nevada-based technology leader in thermal, energy and power management solutions, and will integrate the business into Honeywell Aerospace. Rocky Research's founder and sole owner Uwe Rockenfeller will join Honeywell and the company's Boulder City and Huntsville locations will continue to support R&D, integration and testing. Terms were not disclosed.

AEVEX Aerospace has acquired IKHANA Aircraft Services (Murrieta, CA) and Geodetics Incorporated (San Diego, CA) to broaden its airborne ISR capabilities. The transactions add aircraft engineering, modification and maintenance expertise as well as high-precision PNT, LiDAR mapping and sensor-fusion products to AEVEX's portfolio, supporting both civilian and national security customers.

Avantus Aerospace, a portfolio group owned by Inflexion and Auctus Industries, has acquired California Screw Products (CalScrew), a Paramount, California-based manufacturer of high-strength aerospace fasteners. The acquisition is an add-on to Avantus's C-Class and fastener portfolio intended to expand capabilities and serve commercial and military aerospace customers; CalScrew's existing management will remain in place.

KBR, Inc. has completed the acquisition of Centauri, LLC from Arlington Capital Partners for $827 million, expanding KBR's military space, directed energy, and intelligence capabilities. Centauri, headquartered in Chantilly, Virginia, is a provider of advanced space and intelligence engineering and cybersecurity solutions and will broaden KBR's mission-critical government solutions offerings.

American Science & Engineering (AS&E), a subsidiary of OSI Systems, acquired substantially all assets of Nucsafe, Inc., including its management and development team, technology portfolio, and key patents. The acquisition brings radiation monitoring, gamma/neutron detection and backscatter X‑ray capabilities into AS&E to support homeland security, non‑destructive testing and government customers; terms were not disclosed.

Avantus Aerospace, a PE-backed aerospace C-class parts group, acquired Fastener Innovation Technology Corporation (FIT) of Rancho Dominguez, California as an add-on to expand its specialty fastener capabilities. FIT (founded 1979) will continue to be led by its existing management and will be integrated with Avantus’s fastener businesses to better serve aerospace OEM and defense customers including Boeing, Raytheon and Lockheed Martin.

Curtiss-Wright Corporation agreed to acquire Pacific Star Communications, Inc. (PacStar) for $400 million in cash. The acquisition adds PacStar's rugged tactical communications hardware and IQ-Core network management software to Curtiss-Wright's Defense segment, expanding its battlefield networking capabilities and expected to be accretive to adjusted EPS in the first full year.

DC Capital Partners has entered a strategic partnership with Digital Force Technologies, making DFT a platform company within DC Capital's portfolio. The investment will support DFT's growth — broadening its hardware and software C4ISR, force protection, and tactical surveillance offerings for government and defense customers and expanding into adjacent markets.

Wisconsin Aviation, a full-service fixed-base operator, has acquired Jaeger Aviation of Willmar, Minnesota to expand its aircraft interiors capability. The acquisition brings Jaeger’s Spatial Interior product line and upholstery expertise into Wisconsin Aviation’s aircraft interiors department to support growth in general aviation interior repairs and refurbishments.

QuantiTech LLC, a portfolio company of Sagewind Capital, has acquired Dynamic Concepts, Inc. (DCI), a Huntsville-based provider of high-end engineering and software services for human spaceflight. The acquisition expands QuantiTech's capabilities and deepens its relationships with NASA, the Department of Defense, and commercial space customers; financial terms were not disclosed.

Arotech Corporation's Advanced Electronics Division (AED) has acquired UST-Aldetec, a privately held design, engineering, manufacturing and services company with sites in Fair Lawn, New Jersey; Sacramento, California; and Reno, Nevada. The acquisition expands Arotech AED's capabilities into RF and microwave product platforms and strengthens its position in defense, communications and medical electronics manufacturing.

TT Electronics has agreed to acquire Torotel, a US designer and manufacturer of high-reliability power and magnetic assemblies for the aerospace and defense markets, for $43.4 million. The acquisition expands TT's power electronics capabilities and US footprint, and Torotel will be integrated as a wholly owned subsidiary subject to shareholder and regulatory approvals.

Avon Protection, a subsidiary of Avon Rubber p.l.c., will acquire Team Wendy, a Cleveland-based maker of helmet systems for military, law enforcement and first responders, for $130 million in cash. The deal (subject to shareholder and regulatory approval) will leave Team Wendy operating as an Avon subsidiary from its Cleveland headquarters with its CEO and department directors remaining in place.

AFV Partners LLC has acquired Seattle Avionics, a provider of general aviation flight applications, FAA-certified charts and flight data, and augmented reality technology, from founders John Rutter and Steve Podradchik. The transaction closed on September 3, 2020; Rutter and Podradchik will join AFV Partners' aviation vertical to help expand chart/data capabilities and accelerate product innovation.

Raptor Scientific, a platform company backed by L Squared Capital Partners, has acquired Sensor Concepts, Inc., a designer and manufacturer of radar cross-section (RCS) measurement instruments and related field measurement services. The deal was financed with credit and equity support from Graycliff Partners and Five Points Capital and expands Raptor's test & measurement capabilities in the Aerospace & Defense market.

Integrated Polymer Solutions (IPS), a portfolio company of Arcline Investment Management, has acquired MAST Technologies, a San Diego–based developer and manufacturer of RF, microwave and EMI-absorbing materials. The deal is an add-on to IPS intended to expand IPS's materials and EMI/shielding capabilities for defense, aerospace and commercial electronics markets.

Architect Equity acquired the Aerospace Composites Division of AAR Corporation and renamed the business Aeromatrix Composites. The Clearwater, Florida-based composites manufacturer will operate under Architect's ownership to support growth plans in commercial aerospace and defense, while AAR completed a corporate divestiture of the division.

kSARIA Corporation, a Behrman Capital portfolio company, has acquired Compulink Cable Assemblies Inc., an AS9100-registered manufacturer of high-reliability cable and harness assemblies headquartered in St. Petersburg, Florida. Financial terms were not disclosed; the deal expands kSARIA's production and engineering capabilities and broadens access to defense, medical and transportation end markets.

Baird Capital, the direct investment arm of Robert W. Baird & Co., has acquired an interest in eCube Solutions Limited, a UK-based provider of aircraft storage, disassembly and parts re-use and recycling services. The investment will fund expansion of eCube's UK operations, accelerate growth at its new continental European facility in Spain, expand parking and disassembly capacity, and support entry into the North American market.