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KippsDeSanto & Co. advises Chemring Group PLC on the Sale of Chemring Military Products to Global Ordnance

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KippsDeSanto & Co. advises Chemring Group PLC on the Sale of Chemring Military Products to Global Ordnance

KippsDeSanto & Co. is pleased to announce that it has advised on the sale of Chemring Military Products (“CMP” or the “Company”), a subsidiary of CHG Group, Inc., to Global Ordnance. The transaction expands Global Ordnance’s customer access, while helping our client, Chemring Group PLC (LSE:CHG), pursue its strategic initiatives of reshaping its defense and security portfolio.

Based in Perry, FL, CMP is one of the largest suppliers of non-standard ammunition and ordnance to the U.S. Government and allied militaries.  The Company has direct access to ammunition and weapon systems, including small, medium, and large caliber direct and indirect fire systems.  The Company also supplies law enforcement personnel with high-quality and competitively priced ammunition, pyrotechnics, and weapons systems.  CMP partners with domestic and international customers and utilizes its core competencies in supply chain and program management, quality assurance, and logistics to deliver best-value solutions.

We believe this transaction demonstrates several key trends in the aerospace and defense M&A environment:

  • Continued use of divestitures for portfolio shaping in line with shifting strategic plans
  • Intrinsic value of entrenched customer relationships throughout the defense industrial base
  • Driving value through the ability to realize operational and production synergies

About KippsDeSanto & Co. KippsDeSanto & Co. is the largest independent investment banking firm exclusively focused on serving leading, growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight and broad industry relationships. There’s no substitute for experience. For more information, visit www.kippsdesanto.com.

PRESS RELEASE

Global Ordnance Acquires Chemring Military Products Inc.

SARASOTA, Fla., April 5, 2019 /PRNewswire/ — Global Ordnance LLC (“Global Ordnance”) announced it has completed the acquisition (“Acquisition”) of Chemring Military Products Inc. (“CMP”), a subsidiary company of Chemring Group PLC.

Global Ordnance is a veteran-owned small business that responds to the needs arising from critical missions of the US Government and its allies around the world. Since its inception in 2013, Global Ordnance has earned a reputation as a trusted and reliable partner of its customers, to include the US Special Operations Command and the US Army.

CMP procures and delivers worldwide US-standard and non-standard ammunition and weapons systems.  In FY2018, CMP generated revenues exceeding $111M with an operating profit of $10.5M.

Both Global Ordnance and CMP have been long-time suppliers of non-standard ammunition (NSA) and non-standard weapons (NSW) to US and foreign government entities. Today’s acquisition of CMP by Global Ordnance marks the synergy of two well-established organizations with complementary strengths and expertise. By absorbing the staff and contracts of CMP into its organization, Global Ordnance aims to improve its already stellar reputation as a reliable and dependable US Government business partner and a leading supplier of NSA and NSW. On a larger scale as a result of this purchase, the focus for Global Ordnance going forward remains on providing unmatched service and products to its current customers.

While today’s Acquisition magnifies the depth and breadth of an already strong NSA/NSW team and places Global Ordnance atop the NSA/NSW partner spectrum, it also allows Global Ordnance to broaden the extent of activities in the commercial space which the company entered in earnest within the last two years. Since then, Global Ordnance has become an exclusive US distributor of already established brands, such as Grand Power of Slovakia and Australian Outback Ammunition of Australia. The company plans to continue growing its presence and strengthening its competitive impact in the commercial US market.

For more information about defense sales, visit www.global-ordnance.com or inquire at info@global-ordnance.com.  For additional details regarding commercial sales, visit www.globalordnance.com or inquire at info@globalordnance.com.

Contact – Marc Morales, 941-896-2251, info@global-ordnance.com

 

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KippsDeSanto’s DealView — Top 10 M&A Deals of the Quarter

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KippsDeSanto & Co., a leading aerospace / defense and government technology solutions investment bank, would like to share its thoughts on the “Top 10 M&A Deals of the Quarter” for the period ended March 31, 2019.  The following table is our take on the most notable announced M&A transactions — not only based on size, but also on strategic importance and / or impact.

 The aerospace and defense deal of the quarter is the acquisition of Endeavor Robotic Holdings, Inc. (“Endeavor”) by FLIR systems, Inc. (“FLIR”) from private equity firm, Arlington Capital Partners, for an estimated $385 million in cash.  Based outside Boston and formerly known as iRobot Defense & Security, Endeavor has shipped more than 7,000 unmanned ground vehicles (“UGV”) to customers in over 55 countries.  Endeavor provides battle-tested, tactical UGVs for the global military, public safety, and critical infrastructure markets.  This transaction, along with FLIR’s recent acquisitions of Aeryon Labs and PROX Dynamics, has significantly expanded FLIR’s unmanned systems capabilities and aligns with its evolution from sensors to intelligent sensing and ultimately integrated solutions.  Upon closing of the acquisition, Endeavor will be part of the FLIR Government and Defense Business Unit’s Unmanned Systems and Integrated Solutions division.  The transaction is expected to be $0.03 dilutive to FLIR’s 2019 adjusted earnings per share, due to borrowing costs associated with funding the transaction, but accretive thereafter.

The government technology solutions deal of the quarter is ManTech, Inc.’s (NASDAQ:MANT) acquisition of Kforce Government Solutions, Inc. (“KGS”), a subsidiary of Kforce, Inc. (NASDAQ:KFRC).  KGS provides high-end technology and business consulting solutions aimed at improving mission effectiveness and operational efficiencies for Federal customers, primarily at the Department of Veteran Affairs (“VA”) and Department of Defense (“DoD”).  The $115 million all cash transaction was announced on March 1st.  This acquisition significantly expands ManTech’s footprint at the VA and gives ManTech access to KGS’ prime position on the VA’s 10-year, $22.3 billion, Transformation Twenty-One Total Technology Next Generation (“T4NG”) Indefinite Delivery Indefinite Quantity (“IDIQ”) program.  KGS adds ~500 skilled employees and ~$100 million of annual revenue to ManTech.  This transaction is yet another example of strategic buyers paying premium valuations for well positioned businesses that hold key contract vehicles, like T4NG.  KippsDeSanto & Co. acted as the exclusive financial advisor to KGS on this transaction.

Click to access KippsDeSanto’s 2019 Aerospace/Defense & Government Services M&A Survey

About KippsDeSanto & Co KippsDeSanto & Co. is the largest independent investment banking firm exclusively focused on serving leading, growth-oriented Aerospace/Defense, Government Services and Technology companies.  We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience.  We help market leaders realize their full strategic value.  Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight and broad industry relationships.  There’s no substitute for experience.  For more information, visit www.kippsdesanto.com.

 

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KippsDeSanto & Co. advises BEI Precision Systems & Space Company on its Acquisition of Thistle Design

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KippsDeSanto & Co. is pleased to announce the acquisition of Thistle Design (MMC) Limited (“Thistle”) by an affiliate of our client, BEI Precision Systems & Space Company, Inc. (“BEI PSSC”), a portfolio company of J.F. Lehman & Co.

Following the acquisition of BEI PSSC in April 2017, J.F. Lehman has bolted-on Thistle to complement BEI PSSC’s portfolio of optical encoders, accelerometers, optical scanners, and custom space instruments, with Thistle’s engineering and production capabilities in encoders, resolvers, and other positioning and measurement sensors.

The acquisition provides BEI PSSC with an expanded, international customer base, as Thistle supports several high-profile UK land system and naval programs alongside several well-known prime contractors. Additionally, Thistle also supports numerous industrial applications for customers throughout the UK and Europe.

BEI PSSC hopes to leverage its strong reputation and customer relationships within the industry to market and promote Thistle’s products in both the U.S. and internationally to create significant value. This marks BEI PSSC’s first acquisition and the Company continues to focus on both organic and inorganic growth opportunities.

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading aerospace, defense, and technology companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

Press Release

BEI Precision Systems & Space Company, Inc. Announces Acquisition of Thistle Design (MMC) Limited

November 14, 2018
NEW YORK – BEI Precision Systems & Space Company, Inc. (“BEI PSSC”), a portfolio company of J.F. Lehman & Company (“JFLCO”), announced today the recent acquisition of Thistle Design (MMC) Limited (“Thistle”) by one of its affiliates.
Headquartered in Loanhead, Scotland, Thistle is a supplier of encoders, resolvers, and other positioning and measurement sensors for the defense and industrial markets, primarily in the UK.
BEI PSSC is a leader in high-accuracy positioning sensor technologies, providing advanced design, manufacturing and testing for reliable and resilient products and systems. BEI PSSC’s core product lines, which are used primarily in mission-critical defense and space applications, include optical encoder-based positioning systems, scanners for situational awareness requirements and precision accelerometers. BEI PSSC is headquartered in Maumelle, Arkansas, and has a longstanding track record of technological innovation, with corporate roots dating back to 1862.
“Thistle is BEI PSSC’s first add-on acquisition and represents an important step in executing BEI PSSC’s strategy of augmenting organic development with complimentary add-on acquisitions,“ said Steve Brooks, Partner at JFLCO. “Thistle’s dedicated engineering talent, proprietary suite of products, and focus on customer service represents a strong strategic fit with BEI PSSC’s core operating principles. We are looking forward to further serving our collective customer bases with this broadened portfolio of solutions,” added Will Hanenberg, Principal at JFLCO.
KippsDeSanto & Co. served as financial advisors to BEI PSSC and JFLCO and Jones Day (lead counsel) and Miller & Chevalier Chartered (international trade, government contracts and defense security compliance matters) provided legal counsel.

KippsDeSanto & Co. Advises System High Corporation on its Investment from Enlightenment Capital

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KippsDeSanto & Co. is pleased to announce the investment in System High Corporation (“System High” or the “Company”) by Enlightenment Capital (“Enlightenment”). Headquartered in Chantilly, VA, System High has established itself as a preeminent provider of global protection and security technical engineering solutions for critical National Security and Special Access Programs (“SAP”) across the Department of Defense (“DoD”) and Intelligence Community (“IC”). As a pioneer of industry best practices crafted to solve complex, evolving security challenges in support of sensitive programs, the Company’s proprietary methodologies and frameworks preserve advanced technological superiority and unique capabilities across classified, SAP, and Sensitive Compartmented Information programs complete lifecycles. Coupled with non-traditional protection services, cyber and engineering capabilities, custom training solutions, and experienced Subject Matter Experts deeply versed in a range of security disciplines, the Company’s differentiated security offerings have generated entrenched inroads with difficult-to-obtain, high-profile clients, including the Defense Advanced Research Projects Agency, the National Reconnaissance Office, and the Joint Strike Fighter Joint Program Office, among others, presenting major growth avenues into a sizeable, enduring market. As a new investment, Enlightenment expects to leverage the Company’s mission-critical suite of capabilities and extensive long-term relationships to expand its presence within a coveted DoD and IC customer base in support of enduring, critical national security programs.

We believe this investment demonstrates several key trends in the government services M&A market:

  • Continued demand for sizeable, growing, IC-oriented firms
  • Highlights the demand for scarce assets with a Full and Open contract profile backed by a suite of complementary value drivers
  • Value continues to be placed on companies with mission-critical capabilities and support for SAPs and enduring programs poised to capitalize on budgetary tailwinds and technology modernization priorities
  • Private equity firms continue to leverage strong credit markets and remain active in the government services market

About KippsDeSanto & Co. KippsDeSanto & Co. is the largest independent investment banking firm exclusively focused on serving leading, growth-oriented Aerospace/Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight and broad industry relationships. There’s no substitute for experience. For more information, visit www.kippsdesanto.com.

Press Release

Enlightenment Invests in System High

January 22, 2019 Chevy Chase, Maryland – Enlightenment Capital, an Aerospace, Defense & Government focused investment firm based in the Washington, DC area, announced it has invested in System High Corporation to help accelerate the Company’s growth. System High will serve as Enlightenment’s newest platform. System High is a leading provider of proactive protection (P2), security engineering, counterintelligence, and cybersecurity solutions, serving select government and commercial customers.

Founded in 2005 with offices in the Washington, DC area and Colorado Springs, CO, System High is a leader in the design, development, and enforcement of proactive protection systems that preserve critical technologies and enhance information protection systems for a multitude of government and civilian organizations. “System High continues to attract the best professionals in our business space, and our customers benefit from our team’s focus on supporting our clients’ security goals,” said Rob Howe, newly appointed CEO and President. “I am proud to partner with Enlightenment and the System High family of professionals, which are passionate about preserving our national security.”

“System High will serve as the initial investment of a new Enlightenment platform, which will provide mission critical protection of the technology that underpins many of the most sensitive efforts within the Defense, Intelligence, and commercial sectors,” said Jason Rigoli, Partner of Enlightenment Capital. “We look forward to working with the leadership team to drive the Company’s growth as they continue to play an integral role in this special arena.”

“System High sits at the critical intersection of defense innovation and IP protection,” said Devin Talbott, Managing Partner of Enlightenment Capital. “We plan to support management and invest in the Company’s continued momentum – both organically and through M&A.”

“Enlightenment is an ideal partner and will be instrumental in helping execute our new long range strategic plan,” said Kirk Blubaugh, Company Founder, who will join the Company board, remain a shareholder, and act as a strategic advisor to the Company.

About System High

System High provides high-end solutions for some of the nation’s most sensitive activities and has become a leading provider and integrator of global protection and security engineering services. System High’s reputation of succeeding where others have failed is a direct result of bringing together and delivering the most innovative, critical thinking professionals to solve the most complex security challenges across both government and commercial sectors. For more information, visit www.systemhigh.com.

About Enlightenment Capital

Enlightenment Capital, a Washington, DC area based private investment firm, provides senior debt, mezzanine debt, and equity to middle market companies in the Aerospace, Defense & Government (ADG) sector. The firm partners with businesses that provide vital services, protect critical infrastructure, innovate cyber and data solutions, enhance decision making capabilities, engineer aerospace systems,

safeguard national security, and endeavor to meet the challenges of today and tomorrow. For more information, visit www.enlightenment-cap.com.