KippsDeSanto & Co. Advises Blackhawk Aerospace on its sale to New State Aviation Holdings, a portfolio company of New State Capital Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, Blackhawk Aerospace (“Blackhawk” or the “Company”) to New State Capital Partner’s general aviation-focused platform, New State Aviation Holdings (“NS Aviation”). Blackhawk is comprised of Blackhawk Modifications, Inc. (“BMI”), Blackhawk Aerospace Solutions, LLC (“BAS”), and Blackhawk Aerospace Technologies, Inc. (“BAT”). Blackhawk joins NS Aviation’s anchor aviation investment AVEX, which was acquired in December 2021. Both companies will continue to operate under their existing brands while broadening NS Aviation’s offerings through collaboration.

Headquartered in Waco, TX, with other locations in Columbia, MO and Huntsville, AL, Blackhawk is a leading provider of aircraft performance upgrades, primarily for the general aviation and government turboprop markets with a focus on engine and avionic upgrades. Blackhawk’s aircraft upgrades significantly improve aircraft performance by increasing climb, cruise, fuel efficiency, payload capacity, safety, and mission capability in special operations such as skydiving, humanitarian, and surveillance. Since its founding in 1999 as BMI, Blackhawk strategically added divisions for government support, maintenance, avionics, composites, and aircraft sales. The composites business is not included in this transaction and will continue independently operating under a new brand and name.

Since inception, Blackhawk has developed and obtained a wide range of Federal Aviation Administration Supplemental Type Certificates (“STCs”) and various corresponding foreign validations for leading turboprop platforms. Specifically, the Company has significant experience working with all King Airs as well as other aircraft that use the world’s most popular engine in its class, the Pratt & Whitney Canada PT6A. Additionally, the Company leverages its avionic STCs to upgrade a variety of popular systems, to include avionics from Collins Aerospace, Garmin, and Honeywell. Blackhawk Aerospace has served customers across multiple platforms and the “Blackhawk” brand is recognized throughout the industry as the go-to provider for aircraft engine and avionic upgrades.

AVEX is an authorized distributor and recommended service center of Daher TBM turboprops and has delivered more than 1,000 TBM aircraft currently in service. AVEX also manages a robust maintenance and aftermarket services business, providing a one-stop solution and a high level of customer service to TBM owners across the country.  AVEX’s extensive experience and knowledge in the aircraft aftermarket services market, coupled with the strength of Blackhawk’s brand, market reputation, and upgrade offerings, is expected to help accelerate NS Aviation’s growth.

With Blackhawk as part of its portfolio, NS Aviation will now offer a broader suite of services and solutions to the light turbine market across a wider variety of platforms.

We believe this transaction demonstrates several key trends in the Aerospace & Defense M&A environment:

• Emphasis on highly differentiated offerings with a focus on delivering proprietary performance-enhancing solutions for aircraft engine and avionic upgrades
• Strong outlook and growth prospects within the Business Jet and General Aviation markets
• Continued private equity interest in Aerospace & Defense targets that add immediate scale and unique access to strategic partnerships within the industry

About KippsDeSanto & Co. 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 via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 175 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

Investment Banking products and services are offered through KippsDeSanto & Co., a non-bank subsidiary of Capital One, N.A., a wholly-owned subsidiary of Capital One Financial Corporation, and a member of FINRA and SIPC. Products and services are Not FDIC insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured by Any Federal Government Agency.

Press Release

NEW STATE AVIATION HOLDINGS ACQUIRES BLACKHAWK AEROSPACE

Performance improvement leader joins Daher TBM provider AVEX, expanding general aviation platform

LARCHMONT, NY – January 3, 2023 – New State Capital Partners (“New State”) announced today that its general aviation-focused platform, New State Aviation Holdings (“NS Aviation”), has acquired Blackhawk Aerospace (“Blackhawk” or “the Company”), a recognized leader in aircraft performance improvements. Blackhawk joins NS Aviation’s anchor aviation investment AVEX, a leading provider of sales and maintenance for the Daher TBM turboprop aircraft, which was acquired in December 2021. AVEX and Blackhawk will continue to operate independently, while working together to expand NS Aviation’s offerings.  Blackhawk’s management will remain with the Company. Terms of the transaction were not disclosed.

Headquartered in Waco, TX, with more than 60 employees, Blackhawk provides engine upgrades for a broad range of turboprop planes, improving an aircraft’s speed, safety, and climb capabilities, while extending engine life. The Company serves customers worldwide in the commercial and government markets. Blackhawk was founded in 1999 as Blackhawk Modifications, Inc, and added divisions for government support, maintenance, avionics, composites, and aircraft sales. The composites business is not included in the transition and will remain independent.

“This transformative acquisition more than doubles the size of our business and allows us to expand aircraft platforms serviced,” said Chad Cundiff, CEO of New State Aviation Holdings. “AVEX is a market leader in sales, brokerage and maintenance of the Daher TBM, and Blackhawk is the market leader in turboprop engine upgrades. Together, they will allow New State Aviation Holdings to offer a broader suite of services and meet more needs of light turbine aircraft owners, across a variety of aircraft manufacturers.”

“We are very excited to join New State Aviation Holdings and partner with the folks at AVEX,” said Blackhawk CEO Jim Allmon. “Our family of companies shares a singular focus: to increase an aircraft’s capabilities to unrivalled heights while maintaining the highest level of safety possible. We look forward to working with Chad and the rest of the New State Aviation team to further expand our services.”

“We are thrilled to have Blackhawk join our platform”, added Daniel Han, Senior Principal at New State and Chairman of New State Aviation Holdings.  “As the market leader in engine upgrades and STC development, Blackhawk represents a significant step towards our goal of being the premier service provider for the light turbine market.  More importantly, the outstanding reputation and culture of Blackhawk, focused on people and customers first, will mesh seamlessly with that of AVEX.  We believe this combination will build on the strengths at AVEX, expand our capabilities and enable us to provide the highest levels of service, quality and expertise in general aviation.”

Strong demand for AVEX and Blackhawk products and services has driven record backlogs for both companies and signals a bright future for New State Aviation Holdings.

About New State Capital Partners

New State Capital Partners is an entrepreneurial-minded private equity firm that strives to be nimble, decisive, and cooperative. New State prides itself on a long-term outlook, approaching each potential investment as an opportunity to create lasting and valuable relationships with company founders and especially independent sponsors. The firm has the ability to invest up to $100 million in equity per transaction and seeks to invest in market-leading companies with $8 million to $40 million of EBITDA in the areas of business services, industrials, and consumer. New State and its affiliates have invested in more than 35 companies to date. For more information visit www.newstatecp.com

 About Blackhawk Aerospace

Blackhawk Aerospace is the recognized leader in performance improvements for turboprop aircraft. Founded in 1999 in Waco, Texas, the company serves customers worldwide in the commercial and government markets. Today, Blackhawk Aerospace is comprised of Blackhawk Aerospace Upgrades, Blackhawk Aerospace Solutions, and Blackhawk Aerospace Technologies. A worldwide network of approved dealers and service support centers complements Blackhawk’s U.S. facilities. Visit www.blackhawk.aero for more information.

https://www.blackhawk.aero/company/.

 About AVEX

AVEX is a leading aircraft dealer in North America with a robust maintenance and aftermarket services platform focused on the Daher TBM. With more than 1,000 aircraft in service, the TBM has an enviable position in the single-engine turboprop market.  AVEX was founded in 1985 and has operations in Colorado and California. For more information visit www.newAVEX.com.

 Media contact:

Lambert

Joanne Lessner

jlessner@lambert.com

212-222-7436

 

 

KippsDeSanto & Co. advises Woodlawn Manufacturing, Ltd., a portfolio company of Lone Star Investment Advisors, on its sale to National Defense Corporation, a subsidiary of National Presto Industries, Inc. (NYSE: NPK)

KippsDeSanto & Co. is pleased to announce the sale of its client, Woodlawn Manufacturing, Ltd. (“Woodlawn” or the “Company”) to National Defense Corporation (“NDC”), a subsidiary of National Presto Industries, Inc.

Headquartered in Marshall, TX, Woodlawn is a precision manufacturer of machined metal parts and assemblies for the defense industry. The Company is a first- and second-tier supplier to the U.S. military, manufacturing missile warhead bodies, countermeasure flare components, and other ammunition metal components that require a high degree of precision. Since its founding in 1973, the Company has maintained long-term relationships with blue chip customers including General Dynamics, Chemring, Northrop Grumman, TransDigm, AMTEC, and the Department of Defense.

The transaction augments NDC’s portfolio of explosive manufacturing, assembly, machining, and forming capabilities supporting the Department of Defense.

We believe this investment demonstrates several key trends in the current Aerospace / Defense M&A environment:

• Return to consistent, high-visibility programs with increased demand resulting from global conflicts
• Focus on established relationships with prime defense contractors
• Significant value placed on ability to deliver orders efficiently and effectively despite supply chain constraints

About Lonestar Investment Advisors Based in Dallas, Texas, Lone Star Investment Advisors shares the mission to make equity and equity-oriented investments in middle-market companies located in low to moderate income communities in the State of Texas. Lone Star has successfully invested in all types of economic and financial conditions. The firm invests in a wide variety of industry sectors including manufacturing, industrial, distribution, business services and energy.

About KippsDeSanto & Co. 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 via leveraging our scale, creativity, and industry experience. We help market leaders realize their full strategic value. Having advised on over 175 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.

Investment Banking products and services are offered through KippsDeSanto & Co., a non-bank subsidiary of Capital One, N.A., a wholly-owned subsidiary of Capital One Financial Corporation, and a member of FINRA and SIPC. Products and services are Not FDIC insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured by Any Federal Government Agency.

Press Release

National Presto Industries, Inc. Acquires Woodlawn Manufacturing, Ltd.

October 26, 2022

National Presto Industries, Inc. (NYSE: NPK) announced today that its wholly owned subsidiary, National Defense Corporation, and newly formed subsidiary Woodlawn Manufacturing, LLC, acquired the equity interests of Woodlawn Manufacturing, Ltd, located in Marshall, Texas. Woodlawn Manufacturing, Ltd, is a high volume manufacturer of precision metal parts and assemblies primarily for the defense and aerospace industry. The company is a first- and second-tier supplier to the United States military, producing rocket warhead bodies, countermeasure flare cases and other ammunition metal parts. It has annual sales of approximately $18,000,000. Major customers include U.S. government agencies, AMTEC and other defense contractors.

 National Presto Industries, Inc. operates in three business segments. The Housewares/Small Appliance segment designs and sells small household appliances and pressure cookers under the PRESTO® brand name. The segment is recognized as an innovator of new products. The Defense segment manufactures a variety of products, including medium caliber training and tactical ammunition, energetic ordnance items, fuzes, cartridge cases, and metal parts. The Safety Segment consists of three startup companies. The first is Rusoh, Inc., which designs and markets the Rusoh® Eliminator® fire extinguisher, the first owner-maintained fire extinguisher. The second is OneEvent Technologies, Inc. It offers systems that provide early warning of conditions that if not corrected, could ultimately lead to significant losses. The third is Rely Innovations, Inc., which designs and sells carbon monoxide detectors for residential use.

This release contains “forward looking statements” made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that are subject to certain risks and uncertainties, as well as assumptions, that could cause actual results to differ materially from historical results and those presently anticipated or projected. In addition to the factors discussed above, other important risk factors are delineated in the Company’s various SEC filings.

KippsDeSanto & Co. advises Logistics Management Institute on its sale of for-profit subsidiary, LMI Consulting, to a consortium of investors formed by Declaration Partners, Capitol Meridian Partners, and 22C Capital

KippsDeSanto & Co. is pleased to announce the sale of LMI Consulting (“LMI” or the “Company”) by its client, Logistics Management Institute (“the Nonprofit”), to Declaration Capital Partners, Capitol Meridian Partners, and 22C Capital.  The remaining Nonprofit will be re-branded as NobleReach Foundation™.

Headquartered in Tysons, VA, LMI is a leading provider of technology-enabled management advisory, logistics, and digital & analytics solutions to the U.S. government.

The Company specializes in delivering modern, repeatable solutions to help federal and Intelligence Community (“IC”) customers align their resources with changing and competing priorities, arming them with practical tools to prepare for future challenges. Specific core offerings include advanced analytics, artificial intelligence, business transformation, human capital solutions, supply chain management, and logistics transformation. Additionally, the Company has a rich portfolio of proprietary modeling and simulation tools to help solve complex supply chain and inventory management problems and automate complex processes.

Founded in 1961 to help the Department of Defense (“DoD”) solve complex challenges, LMI has leveraged decades of experience and prior performance to establish a franchise position across nearly all federal markets. LMI is focused on bringing future-focused thought leadership and technology to customers within the Defense & Space, Health & Civilian, Homeland Security, and Intelligence markets.

The partnership with Declaration Partners, Capitol Meridian Partners, and 22C Capital will help expand LMI’s growth further as the Company continues to deliver in-demand capabilities and proprietary solutions across its core markets.

We believe this transaction highlights several key trends in the government technology solutions M&A market:

• High-end, next-generation technologies continue to be highly coveted growth areas given their importance to National Security and increasing budgetary trends
• Significant demand for diversified capabilities, market expertise, and intellectual property reinforced by highly skilled, experienced, and cleared employees
• Financial sponsors with explicit growth strategies and industry knowledge continue to deploy capital through new platform investments, particularly for companies with strong management teams, established customer relationships, and differentiated proprietary technologies

About KippsDeSanto & Co.

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 via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 175 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.

Investment Banking products and services are offered through KippsDeSanto & Co., a non-bank subsidiary of Capital One, N.A., a wholly-owned subsidiary of Capital One Financial Corporation, and a member of FINRA and SIPC. Products and services are Not FDIC insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured by Any Federal Government Agency.

 Press Release

LMI Agrees to Sell For-Profit Subsidiary to Consortium of Investors

• Declaration Partners, Capitol Meridian Partners, and 22C Capital have deep experience growing tech-enabled businesses that serve the U.S. government
• Investor group brings a blend of long-duration capital, industry expertise, and technology/data analytics resources to enhance LMI’s support of customers
• Remaining nonprofit entity to re-brand as NobleReach Foundation™

Tysons, VA, Washington, DC & New York, NY – LMI, a provider of technology-enabled management consulting, logistics and digital & analytics solutions to the U.S. government, has agreed to sell its for-profit subsidiary to a consortium of investment firms: Declaration Partners (backed by the family office of David M. Rubenstein), Capitol Meridian Partners, and 22C Capital. The for-profit subsidiary will retain the LMI name. The remaining entity will be re-branded as nonprofit NobleReach Foundation™ and be a free-standing independent entity. Terms of the transaction, which is expected to close in Q3 2022, are not disclosed.

 

Doug Wagoner, LMI president and CEO, said, “This new partnership will better position LMI to innovate and support the missions of its government customers. Declaration, Capitol Meridian, and 22C bring an extensive knowledge of the government marketplace and a deep technology expertise, strengthening our ability to help our customers solve their complex challenges.” He added, “Our people are our greatest asset. This opportunity expands our ability to attract and retain the best talent while maintaining our winning LMI culture.”

“The federal government is in the early stages of a generational digital transformation of IT infrastructure. Under the proven and inspired leadership of Doug Wagoner, LMI is well-positioned to continue to be the technology solutions provider of choice to a range of government agencies,” said Adam Palmer of Capitol Meridian Partners, Elliot Wagner of Declaration Partners, and Eric Edell of 22C Capital.

They added, “We will support Doug and his team as they build on LMI’s rich 60+ year history of relationships in a cross-section of the federal government and accelerate the evolution of the platform into a digital-focused, tech-enabled solutions provider leveraging an in-house technology incubator to better serve its customers.”

Founded in 1961 to help the Department of Defense resolve complex challenges, LMI provides digital services, advanced analytics, logistics, and management advisory services across the federal government, including the Department of Defense, the Department of Homeland Security, and the health and intelligence communities.

The Honorable Lisa Disbrow, LMI’s chair, commented, “The evolution and separation of LMI and NobleReach Foundation™ is a necessary force multiplier that accelerates the opportunity to realize LMI’s mission and charter—driving greater value for employees, government, and society through two unique, exceptional organizations.”

KippsDeSanto & Co. served as the M&A advisor to LMI, and Macquarie served as M&A advisor to the investors. The investors were also advised by Latham & Watkins, Sidley Austin, and Paul Weiss on various aspects of the transaction.

 About LMI

LMI is a consultancy dedicated to powering a future-ready, high-performing government, drawing from expertise in digital and analytic solutions, logistics, and management advisory services. We deliver integrated capabilities that incorporate emerging technologies and are tailored to customers’ unique mission needs, backed by objective research and data analysis. Founded in 1961 to help the Department of Defense resolve complex logistics management challenges, LMI continues to enable growth and transformation, enhance operational readiness and resiliency, and ensure mission success for federal civilian and defense agencies.

 About Declaration Partners

Declaration Partners is a private investment firm that seeks to be a value-added capital partner and strategic resource to management teams and asset owners where patient, flexible capital provides an advantage. Declaration has approximately $2.5 billion in assets under management across its investment strategies, which include growth equity, real estate, platform company investments, fund seeding, and other opportunistic strategies. Anchored by the family office of private equity veteran and philanthropist David M. Rubenstein, Declaration invests on behalf of family offices and like-minded institutional investors. The firm was founded in 2017 and is headquartered in New York with an office in the Washington, DC area.

 About Capitol Meridian Partners

Capitol Meridian Partners was formed in 2021 to invest at the nexus of commercial and government markets, targeting opportunities where the firm can invest and drive value creation through active engagement with management. The firm draws upon the deep network of industry veterans curated over 25+ years of its principals’ experience in the sector to bring thoughtful strategic resources to each investment opportunity.

 About 22C Capital

22C Capital is a private investment firm committed to delivering capital and critical resources to companies operating at the intersection of technology enablement and data analytics adoption. 22C partners with world-class management teams to build

leaders in their respective markets. The firm’s operational and technology resources, including its affiliated data science organization, deliver practical, real-world support to help convert businesses’ challenges into opportunities and unlock their full potential.

Media Contacts

LMI

Robin Milton
(703) 727-8517
wmilton@lmi.org

Declaration, Capitol Meridian, and 22C Capital

Chris Ullman
(202) 641-2234
chris@chrisullman.com