KippsDeSanto’s DealView — Top 10 Merger & Acquisition (“M&A”) Deals of the Quarter⁽¹⁾

KippsDeSanto & Co., an investment banking firm focused on serving growth-oriented Aerospace & Defense (“A&D”) and Government Technology Services (“GTS”) companies, is pleased to share its DealView – the “Top 10 M&A Deals of the Quarter” – for the quarter ended September 30, 2024.

Of the above transactions, the following were especially noteworthy:

The A&D deal of the quarter is Platinum Equity, LLC’s (“Platinum”) pending $1 billion acquisition of Héroux-Devtek Inc. (TSX: HRX) (”Héroux-Devtek” or “the Company”). Headquartered in Longueuil, Québec, Héroux-Devtek provides the design, development, manufacturing, repair, and overhaul of specialized landing gear, actuation systems, components, hydraulic systems, fluid filtration systems, and electronic enclosures for international aerospace markets. Héroux-Devtek currently utilizes 15 facilities across Canada, the U.S., the U.K., and Spain with approximately 1,800 employees serving the aerospace end market. The Company operates in two business segments – Defense and Civil – and provides mission-critical solutions specifically designed for transport aircraft, fighter jets, helicopters, large commercial, business jets, and regional aircraft. Héroux-Devtek will provide Platinum the opportunity to expand a brand renowned for its engineering excellence, strong focus on research and development, and outstanding customer service through additional operational resources and strategic acquisitions. Héroux-Devtek’s position as the third largest landing gear company worldwide provides significant opportunity for scale and consolidation, demonstrating continued appetite for take-private opportunities among financial sponsors. Platinum Equity will acquire all the issued and outstanding common shares of the Company at CAD $32.50 per share. The consideration offered to the Company’s shareholders under the transaction represents a 28% premium to the closing share price on July 10, 2024, the day prior to the deal’s announcement. The transaction is expected to close before March 31, 2025, and remains subject to certain regulatory approvals.

The GTS deal of the quarter is the acquisition of Axient, a portfolio company of Sagewind Capital, by Astrion, a portfolio company of Brightstar Capital Partners. Based in Huntsville, AL, Axient is a highly regarded provider of specialized engineering solutions. Axient advances defense and civilian missions from aerospace to cyberspace with multi-domain test and analysis, mission engineering and operations, and advanced technologies. The strategic acquisition positions Astrion to significantly enhance its capabilities, increase opportunities for the combined employee base, expand its market presence, and deliver greater value to its customers. The combination strengthens and expands the collective capabilities and services portfolio, at a scale that creates advantages for customers and stakeholders. The transaction closed on August 29, 2024; and financial terms have not been disclosed.

KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace & Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients by leveraging our scale, creativity, and industry experience. We help market leaders realize their full strategic value. Having advised more than 200 industry transactions since 2008, KippsDeSanto is recognized for its analytical rigor, market insight, and broad industry relationships. There’s no substitute for experience. For more information, visit www.kippsdesanto.com.

Securities and investment banking products and services are offered through KippsDeSanto & Co., a non-banking subsidiary of Capital One, N.A., a wholly owned subsidiary of Capital One Financial Corporation. KippsDeSanto is a member of FINRA and SIPC. Products or services are Not FDIC Insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured By Any Federal Governmental Agency.