Aerospace & Defense Acquisitions in 2023

Lineage Capital-backed Flightcheck Commercial Aviation Services acquired Keenan Technical Industries (KTI), a provider of aircraft line maintenance services at Bradley International Airport (BDL) and Manchester-Boston Regional Airport (MHT). The transaction closed on December 15, 2023 and expands Flightcheck's line maintenance footprint into the U.S. Northeast as an add-on to its existing platform.

Herndon-based HawkEye 360 has acquired RF Solutions, a Westminster, Colorado business unit formerly part of Maxar Intelligence. The deal, a divestiture of Maxar's RF Solutions assets, adds two on-orbit satellites, IP, a data archive and about 11 employees to HawkEye 360, expanding its RF-spectrum scanning and analytics capabilities.

Cadre Holdings, Inc. (NYSE: CDRE) has acquired ICOR Technology Inc., an Ottawa-based manufacturer and distributor of explosive ordnance disposal (EOD) robots and specialized protective security equipment. The deal — presented as an add-on to Cadre's EOD business — was funded with available cash, is expected to be immediately accretive, and adds a business that generated roughly CAD 26 million in revenue for the year ending July 31, 2023.

AEFP Group, a North American precision parts and assemblies platform backed by Emko Capital, has acquired Johnson Precision Products of Santa Ana, California and named industry veteran Joe DeMartino as CEO of the group. The add-on strengthens AEFP Group’s hydraulics and fuel-systems component capabilities and expands its electro-mechanical assembly offerings for aerospace and defense customers.

Nokia has acquired North American tactical communications specialist Fenix Group from Enlightenment Capital to strengthen its defense and private wireless offerings. Fenix — maker of the Banshee and Talon tactical 3GPP products — will help Nokia expand capabilities for mission-critical, low-latency military communications and accelerate its U.S. defense strategy.

Thrust Capital Partners, in partnership with Desjardins Capital, has acquired DCM Group, a Quebec-based manufacturer of aerostructure components, ground support equipment and MRO services. Investissement Québec remains an investor in DCM, and the company's existing management team will remain in place as TCP pursues growth and global expansion of the platform.

Xalles Holdings Inc. (OTC: XALL) has acquired Artemis Defense Technologies UK Ltd., a developer of uncrewed (unmanned) systems and autonomous defense technologies, which will become the first subsidiary in Xalles' newly created Security business group. The transaction brings Artemis' AI-enabled autonomy, rapid-prototyping and consulting capabilities into Xalles as the company pursues expansion into U.S. defense initiatives and international defense programs.

BlueHalo, a portfolio company of Arlington Capital Partners, has acquired Ipsolon Research, a designer and manufacturer of ultra-small form factor software defined radios (SDRs). The acquisition will integrate Ipsolon's SDR hardware and software capabilities into BlueHalo's product portfolio to accelerate prototyping, expand capabilities for mission-critical defense applications, and better serve Department of Defense customers.

Funds affiliated with Madison Dearborn Partners have acquired T2S Solutions, a founder-owned provider of R&D, prototyping, engineering, integration, and technology products serving the U.S. Department of Defense, the Intelligence Community, and other U.S. government agencies. The T2S founders will retain a significant minority stake and continue to lead the company as MDP provides capital and industry expertise to accelerate R&D, bring products to lead production, and expand mission-focused capabilities.

Arcfield has completed its acquisition of Orion Space Solutions, a Colorado-based developer of end-to-end space mission capabilities. The deal expands Arcfield's capabilities in SmallSat/CubeSat design and integration, sensors and payload development, space mission operations, and data analysis to support Department of Defense and Intelligence Community missions.

An affiliate of The Resolute Fund VI (managed by TJC, L.P.) has closed the acquisition of L3Harris Technologies' Commercial Aviation Solutions (CAS) business for $800 million in cash. The CAS business — comprising an Avionics manufacturing unit and a Commercial Training Solutions unit — will operate under the new name Acron Aviation and serves commercial, business/regional and military aviation customers worldwide. The sale represents L3Harris' divestiture of a commercial-focused unit to focus on its core defense operations.

SMX, a provider of mission support and digital transformation services, has acquired Outside Analytics, a Colorado-based software engineering and data analytics firm focused on the National Security Space community. The acquisition adds geospatial analytics, sensor data processing, and visualization capabilities to SMX and expands its footprint in the national security space market; financial terms were not disclosed.

Gilat Satellite Networks Ltd. has completed the acquisition of DataPath, Inc., a U.S.-based provider of secure communications and satellite systems for the U.S. Department of Defense and other government customers. The deal, approved by both companies' boards and cleared by CFIUS, is intended to expand Gilat's presence in the defense market and create cross-selling and technology-integration synergies between the companies' satellite communications offerings.

Aero 3, Inc., a GenNx360 Capital Partners portfolio company and parent of AeroRepair, Aircrafters and Hemico, has acquired Skywheels Ltd., a Cheshire, England-based wheel and brake repair and overhaul provider for the aviation industry. The acquisition adds a U.K./EMEA footprint to Aero 3's existing North American network and is intended to expand Aero 3's product, parts exchange and MRO capabilities across Europe.

Graham Corporation (NYSE: GHM) acquired P3 Technologies, a Jupiter, Florida-based custom turbomachinery engineering and manufacturing business, in a stock-and-cash bolt-on transaction to expand its turbomachinery capabilities and proprietary technology. P3 generated approximately $6.0 million of revenue in fiscal 2023 and brings patented technologies (MCD and SCAMP) and an $8 million backlog; the stock portion of the purchase price is valued at $2.0 million (stock priced using a $15.92 average).

Raptor Scientific has acquired MEDTHERM Corporation, a Huntsville, Alabama-based maker of heat flux sensors, infrared radiometers, and thermocouples for aerospace, defense, space, and industrial applications. The purchase brings MEDTHERM's precision sensing capabilities into Raptor's test-and-measurement product portfolio and will support continued investment in the business and service continuity for customers and employees.

West Star Aviation, a portfolio company of The Sterling Group, has acquired Jet East from Gama Aviation. The deal brings together two business-aviation MRO providers to expand geographic coverage, AOG/mobile capabilities, and heavy- and line-maintenance services (transaction announced in Nov 2023; reported sale price ~US$131 million).

Signia Aerospace, a portfolio company of Arcline Investment Management, has acquired Meeker Aviation and Airfilm Camera Systems. The deal adds Meeker's aircraft external payload mounts and Airfilm's camera systems to Signia's Mission Systems segment, expanding its mission-specific equipment offerings for military, utility, law enforcement and production customers.

Apollo-managed infrastructure funds will acquire a majority stake in Modern Aviation, a U.S. fixed-base operator (FBO) platform. Tiger Infrastructure Partners (the current owner) and Modern Aviation’s management will reinvest alongside Apollo to support growth and network expansion across Modern’s 16-site portfolio.

Eqlipse Technologies, a portfolio company of Arlington Capital Partners, has agreed to acquire SR Technologies (SRT), a provider of signals intelligence (SIGINT) and electronic warfare (EW) products and engineering solutions. The add-on acquisition expands Eqlipse's technical capabilities for Department of Defense, Intelligence Community, and federal law enforcement customers; financial terms were not disclosed and the deal was expected to close in Q4 2023.

Fairbanks Morse Defense (an Arcline portfolio company) has acquired American Fan, a Fairfield, Ohio-based maker of axial and centrifugal fans. The add-on expands FMD’s OEM product and service capabilities for naval and marine customers, integrating American Fan’s fans (specified in 30 U.S. Navy shipbuilding programs) into FMD’s turnkey marine solutions.

uAvionix Corporation has acquired Iris Automation, combining uAvionix's communications, navigation and surveillance (CNS) capabilities with Iris Automation's computer vision-based Detect and Avoid (DAA) systems. The deal strengthens uAvionix's ability to offer a multi-layered safety architecture for crewed and uncrewed aircraft and includes a leadership change with Jon Damush (former Iris CEO) named CEO of uAvionix.

De Havilland Aircraft of Canada Limited has purchased Mid-Canada Mod Center (MC2) and Avionics Design Services (ADS) to expand its engineering, avionics upgrade, and MRO capabilities across Canada. The acquisitions support De Havilland's integration of Universal Avionics flight decks for its CL-215T/CL-415 firefighting aircraft and the acquired businesses will operate as subsidiaries with existing leadership remaining in place.

Heads Up Technologies, a portfolio company backed by JLL Partners, has acquired ALTO Aviation, a Sterling, Massachusetts-based designer and manufacturer of premium OEM and aftermarket cabin audio and cabin management systems. The acquisition expands Heads Up's product portfolio and strengthens its presence in the OEM and aftermarket business aviation markets.

Edgewater Growth Capital Partners V, L.P. led an investment in Turbine Engine Specialists (TES), a Fort Worth, Texas–based aftermarket provider of turbine engine MRO, rental and parts distribution for the global private aviation market. The transaction includes co-investors Banbury Private Capital, HF Capital and existing investor Killick Capital; TES will retain its full leadership team as the investors provide capital to support the company’s growth initiatives.

Arcline Investment Management, a growth-oriented private equity firm, has signed a definitive agreement to acquire Hartzell Aviation from Tailwind Technologies. Hartzell, headquartered in Piqua, Ohio, designs and manufactures aircraft propellers and engine accessories through its Hartzell Propeller and Hartzell Engine Tech business units; Arcline said the acquisition fits its strategy of investing in critical suppliers and will support the company's next phase of growth.

Stellant Systems, a portfolio company of Arlington Capital Partners, agreed to acquire Comtech Telecommunications' Power Systems Technology (PST) product line for a total cash purchase price of $40 million (including up to $5 million contingent consideration). The deal strengthens Stellant's RF amplification portfolio — adding Gallium Nitride solid-state power capabilities and complementary customers and workforce — while Comtech will use the proceeds to reduce debt and de-lever its balance sheet.

Firmament announced a capital investment in LightRidge Solutions Holdings LLC to provide structured equity and credit financing to the space- and defense-focused platform. The investment will support LightRidge’s continued platform build and capability expansion—LightRidge (an ATL Partners-backed platform) has previously added GEOST and Ophir and recently integrated Trident Systems to expand space electronics, sensing and C4ISR capabilities.

Calvert Street Capital Partners portfolio company Machine Specialties, Inc. has acquired Cambridge Specialty Company, Inc., a Berlin, Connecticut-based precision manufacturer of flight-critical aerospace, defense and space components. The add-on expands MSI's capacity and capabilities, providing customer and service diversification while supporting growth initiatives.

VideoRay of Pottstown, Pennsylvania has acquired Blue Ring Imaging, a St. Petersburg, Florida developer of 3D visualization, multi-view perception and simulation technologies for unmanned systems. The acquisition brings Blue Ring's AI, AR/VR, 3D reconstruction and simulation capabilities into VideoRay's Mission Specialist ROV product line to improve autonomy, situational awareness and object detection for naval, research and commercial customers.

Trexon, a portfolio company of Audax Private Equity, has completed the acquisition of C.E. Precision Assemblies, Inc. (CEPA), a Chandler, Arizona-based manufacturer of RF/microwave cable assemblies, wire harnesses, and electromechanical solutions. The add-on expands Trexon's Engineered Products group's capabilities and strengthens its presence in military and aerospace end markets; the business was sold by former owner Paul Ross.

KYOCERA AVX is acquiring the assets, people, and IP of Bliley Technologies and will operate the acquired business under KYOCERA AVX Components Corporation. The asset transfer expands KYOCERA AVX's crystal device portfolio and brings Bliley’s low-noise frequency control products, patents, and a certified Erie, Pennsylvania manufacturing facility into KYOCERA AVX to better serve aerospace, defense, satellite and telecommunications markets.

Cyberlux Corporation (OTC: CYBL) has acquired Datron World Communications, Inc., a U.S.-based supplier of tactical HF and VHF radios and communications systems. The acquisition expands Cyberlux's defense technology capabilities by integrating Datron's tactical communications products and global customer footprint into Cyberlux's UAS and advanced communications offerings.

A&M Capital Partners has made a majority investment in VTG, a provider of modernization and digital transformation solutions for the U.S. Defense and Intelligence Community. The Jordan Company exited its ownership as part of the transaction; A&M plans to grow VTG via a mix of organic investments and acquisition-driven expansion.

General Atomics has acquired EO Vista, LLC, an Acton, Massachusetts-based developer of electro-optical and infrared sensor payloads, and will integrate the business into its General Atomics Electromagnetic Systems (GA-EMS) group. EO Vista currently supplies the EO/IR weather sensor payload for a U.S. Space Force contract to deliver an EO/IR Weather System (EWS) satellite; the acquisition expands GA-EMS's sensor and space systems capabilities.

Muhr und Bender KG (Mubea) has signed an agreement to acquire Canadian aerospace parts manufacturer Cyclone Manufacturing Inc. from Andrew Sochaj and his family. Cyclone — with roughly 700 employees across Canada and Poland and approx. CAD 120 million in sales (FY22/23) — will be integrated into Mubea's Aviation Division to expand Mubea's production capabilities in larger components and assemblies and broaden its aerospace customer base.

Rock West Composites acquired the assets of Performance Plastics, Inc. on September 8, 2023, integrating PPI’s staff, facility and equipment into RWC operations. The deal expands Rock West’s product offering and manufacturing capabilities—adding metallic manufacturing, machining, forming and bonding—and brings approximately 80 PPI employees into RWC’s employee‑owned business.

Tuthill Corporation, a privately held industrial manufacturer based in Burr Ridge, Illinois, has entered into an agreement to acquire EaglePicher Technologies, a U.S. maker of mission-critical defense- and aerospace-grade batteries and energetic devices. The transaction — expected to close in 2023 pending regulatory approvals — brings EaglePicher's ~850–900 employees and multiple U.S. manufacturing sites into Tuthill's portfolio to expand its capabilities and presence in defense, space and aviation markets.

Anduril Industries has acquired Blue Force Technologies, a North Carolina-based developer and manufacturer of large autonomous aircraft and composite aerostructures, including the Fury group‑5 autonomous air vehicle. The acquisition expands Anduril's autonomous portfolio into large, high-performance unmanned aircraft and will support expanded manufacturing operations in North Carolina; terms were not disclosed.

AMETEK, Inc. has acquired United Electronic Industries (UEI), a Norwood, Massachusetts–based designer and manufacturer of data acquisition, test, measurement and control solutions. UEI will join AMETEK's Electronic Instruments Group to expand the company's capabilities in data acquisition and testing across aerospace, defense, energy and semiconductor end markets.

Loar Group Inc. has completed the acquisition of CAV Systems Group Limited (CAV) from Baird Capital, giving Baird a full exit from its 2017 investment. Headquartered in Consett, County Durham, CAV is a provider of in‑flight ice protection and drag‑reduction technologies; Loar said the deal expands its proprietary aerospace capabilities and aftermarket offering.

Systems Planning & Analysis (SPA), an Arlington Capital Partners portfolio company, has acquired PRKK, LLC, a provider of space domain awareness, systems engineering, and intelligence analysis services. The acquisition integrates PRKK into SPA's Space & Intelligence division to expand SPA's capabilities and customer reach across national security, Space Force, and intelligence community programs.

Saab has acquired all shares in UK-based BlueBear Systems Group Ltd to strengthen its AI-enabled autonomous swarm and command-and-control capabilities. BlueBear, based outside Bedford, England, employs about 65 staff and had roughly £8 million turnover last year; Saab will integrate the business as a centre for rapid concept development to enhance its offering across key international markets.

Silicon-based photonics company SIONYX has acquired American Imaging Engineering (Amigen), a thermal imaging systems and imaging-fusion software provider. The acquisition brings Amigen's founder Jeffrey Lee into SIONYX as Chief Technology Officer and is intended to accelerate development and integration of fused thermal and visible imaging technologies across SIONYX's consumer, commercial and defense product lines.

CBC Global Ammunition (CBC Brazil) has acquired SinterFire, a U.S.-based developer of frangible and lead-free bullet technology headquartered in Kersey, Pennsylvania. The deal brings SinterFire's eco-friendly projectile designs and OEM/government relationships into CBC's global ammunition portfolio to expand capability and accelerate development of environmentally responsible ammunition solutions.

AeroVironment, Inc. has agreed to acquire 100% of Tomahawk Robotics for $120 million in a mix of cash and stock. The acquisition brings Tomahawk's AI-enabled Kinesis common control system into AeroVironment's small UAS business unit to deepen interoperability, accelerate AI/autonomy adoption, and expand the combined offering to military and allied customers while retaining Tomahawk's Florida workforce and facilities.

RBC Bearings Incorporated has acquired the business assets of Specline, Inc., a Carson City, Nevada-based manufacturer of precision bearings for the commercial and defense aerospace markets, for $18.7 million. The acquisition (Specline employs 38 people and generated approximately $8.4 million in trailing twelve-month sales) expands RBC's aerospace product offering and increases its production capacity.

Thrust Capital Partners (TCP), a Canadian private equity firm focused on the aerospace supply chain, has entered a strategic partnership with Dishon Limited, an Ontario-based precision machine shop that manufactures complex machined components for the aerospace, space and satellite sectors. The transaction is TCP's first platform acquisition (Fund I) and the Dishy family will retain substantial ownership and remain in their current roles as the company pursues geographic expansion and growth.

Frontgrade Technologies, a portfolio company of Veritas Capital, has completed the acquisition of Aethercomm, a designer and manufacturer of high-power RF solid state power amplifiers and RF switches. Aethercomm will operate as a division rebranded Frontgrade Aethercomm, with founder Todd Thornton and the management team remaining and Thornton serving as General Manager; the deal expands Frontgrade's RF and antenna capabilities for aerospace and defense customers.

Sentar Inc., a Huntsville-based cyber intelligence and technology firm, has acquired Waterfront Technical Services, a Huntsville company that provides flight and ground operations, data center operations, IT, software development, and test support for NASA missions. The acquisition expands Sentar's capabilities and reach into civil space programs, with Waterfront's president Allan McCaleb joining Sentar as Director of Civil Space programs.