KippsDeSanto & Co. advises Tri-Tech Forensics, Inc., a portfolio company of Point Lookout Capital Partners, on its purchase of SAM Medical

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KippsDeSanto & Co. is pleased to announce that its client, Tri-Tech Forensics, Inc. (“Tri-Tech”), a leading provider of tactical emergency medical solutions and human identification kits and a portfolio company of Point Lookout Capital Partners, has acquired SAM Medical Products, Inc. (“SAM” or “the Company”).

Founded in 1985 by Dr. Sam and Cherrie Scheinberg, SAM is an internationally recognized developer and manufacturer of emergency medical equipment and supplies based in Tualatin, Oregon. The Company has developed a variety of proprietary products, technologies, and intellectual property that provide high-quality, reliable and effective emergency medical solutions that elegantly solve the most problematic complications encountered by military medics and civilian first responders.

Tri-Tech designs and manufactures custom medical kits, patient transport systems, immobilization and airway management products. The Company is also the nation’s most proficient developer and manufacturer of human identification solutions, including its premier DNA collection kits. Tri-Tech was founded in 1983 and is headquartered in Leland, North Carolina.

“We are confident that joining the Tri-Tech family of companies will provide a bright future for SAM Medical,” Dr. Sam Scheinberg said. “Tri-Tech’s commitment to excellence and dedication to supporting those on the front lines of emergency care align perfectly with our values. I believe that the team Cherrie and I have built over the years will continue to thrive and make a meaningful impact in the field of emergency medicine under their stewardship.”

“Dr. Scheinberg’s pioneering spirit and his team’s focus on products to enhance patient outcomes has been vital in advancing the field of emergency care,” said Mr. Jim Seidel, CEO of Tri-Tech. “We have enjoyed partnering successfully with SAM Medical over the years and honored for them to become an integral part of the Tri-Tech family. We are committed in supporting SAM Medical in its continued innovation, growth and success.”

Read more in the full press release.

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 200 industry transactions since 2008, 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.

KippsDeSanto & Co. advises TransDigm Group Inc. on the Sale of the Hypersonic and Defense Test Systems Business Units of Calspan to Cerberus Capital Management, L.P, forming North Wind

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KippsDeSanto & Co. is pleased to announce that it has advised on the sale of the Hypersonic and Defense Test Systems Business Units of Calspan, a subsidiary of TransDigm Group Inc., to Cerberus Capital Management, L.P. In acquiring the Hypersonics and Test Systems Business Units of Calspan, Cerberus has established North Wind (“the Company”).

Headquartered in St. Paul, Minnesota, North Wind is an independent provider of research, development, test, and design (“RDT&E”) systems and services with a full spectrum of capabilities. From early-stage research and development at the subsystem and system levels to supporting full-scale programs, North Wind provides the design, analysis, manufacturing, and testing for complex aerospace, defense, and hypersonic systems.

As a long-standing partner for a diverse customer base, the Company has a reputation for adapting to customer requirements and delivering high-quality services. North Wind’s advanced subject matter expertise and infrastructure-related aftermarket services enable more effective future systems for long-term sustainment.

The acquisition by Cerberus’ Supply Chain and Strategic Opportunities platform represents the creation of a solution for hypersonic testing capabilities that assists in driving innovation, promoting resilient infrastructure, and advancing solution integration. Cerberus believes this new platform will continue to grow and meet an expanding need for updated infrastructure and associated field-ready systems.

Read more in the full press release.

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 200 industry transactions since 2008, 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.

KippsDeSanto & Co. advises Worldwide Flight Services Inc., a subsidiary of SATS Ltd., on the sale of Maytag Aircraft LLC to Albion River LLC

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KippsDeSanto & Co. advises Worldwide Flight Services Inc., a subsidiary of SATS Ltd., on the sale of Maytag Aircraft LLC to Albion River LLC

KippsDeSanto & Co. is pleased to announce the sale of Maytag Aircraft LLC (or the “Company”), a subsidiary of Worldwide Flight Services Inc. (“WFS”) and SATS Ltd. (“SATS”), to Albion River LLC.

Maytag provides aircraft fueling services, air terminal and ground handling services, and base operations support exclusively to the U.S. Department of Defense in the U.S. and overseas. Maytag operates on a standalone basis and outside of the SATS’ core businesses and competencies.

The sale of Maytag is in line with SATS’ strategy, following the acquisition of  WFS, to streamline operations, deliver synergies and strengthen its balance sheet.

Manfred Seah, CFO of SATS Ltd., said, “This divestment is part of our efforts to rationalize our portfolio to concentrate on core businesses that have a strategic fit for the group, focusing on high-value segments that will drive sustainable growth. We are committed to developing scalable and profitable solutions for our customers that will deliver increased value across the expanded network. The Group’s financial priorities remain to repay debt, reinvest in the business, and resume dividend distribution to our shareholders.”

 

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 200 industry transactions since 2008, 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.

KippsDeSanto & Co. advises Mission Microwave Technologies, LLC, a portfolio company of GaAs Labs LLC, on its sale to an investment affiliate of J.F. Lehman & Company

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KippsDeSanto & Co. advises Mission Microwave Technologies, LLC, a portfolio company of GaAs Labs LLC, on its sale to an investment affiliate of J.F. Lehman & Company

KippsDeSanto & Co. is pleased to announce the sale of its client, Mission Microwave Technologies, LLC (“Mission” or the “Company”) to an investment affiliate of J.F. Lehman & Company (“JFLCO”), a leading middle-market private equity firm focused exclusively on the aerospace, defense, maritime, government and environmental sectors.

Founded in 2014 and headquartered in Cypress, CA, Mission is a leading provider of Solid-State Power Amplifiers (“SSPAs”) and Block Upconverters (“BUCs”) to the satellite communications market. The Company’s X, Ku and Ka Band units support critical ground-based, airborne, maritime and space-based applications, for government and commercial customers that require high efficiency, reliability and performance. Utilizing advanced gallium nitride (“GaN”) transistors, unique power combining technology, and novel full-system designs, Mission provides the industry’s most efficient, lightweight, and compact high-power devices.

Francis Auricchio, Co-Founder, President, and CEO of Mission commented, “JFLCO represents the perfect partner to support the next stage of our Company’s evolution.  JFLCO offers a unique combination of deep industry knowledge and relationships, commercial and operational expertise, and substantial capital we will leverage to accelerate our growth, product portfolio expansion and further advance our technological leadership.  The entire Mission team is excited to continue to deliver innovative solutions to our customers’ complex and ever-changing challenges under JFLCO’s sponsorship.”

JFLCO is partnering with Mission’s prior shareholders, (affiliates of GaAs Labs LLC), founders and management, who will remain material shareholders in the business and continue to lead Mission as the Company pursues the next phase of its growth.

This transaction highlights several key trends in the M&A market:

  • Significant market demand for technology-driven companies developing cutting-edge solutions that address the increasing need for bandwidth, data, and connectivity
  • Financial sponsors remain active for premium assets, particularly for companies with leading market positions, control over IP and design of all key technologies, differentiated capabilities, and enduring relationship with well-funded customers
  • Companies deeply embedded on signature programs with high-profile Federal agencies and commercial customers remain extremely coveted
  • Continued focus on high-growth companies that are providing mission-enabling technology and aligned with Federal and commercial budgetary trends and strategic priorities

Read more in the full press release.

 

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 200 industry transactions since 2008, 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.

KippsDeSanto & Co. advises advises Outside Analytics, Inc. on its sale to SMX, a portfolio company of OceanSound Partners

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KippsDeSanto & Co. advises advises Outside Analytics, Inc. on its sale to SMX, a portfolio company of OceanSound Partners

KippsDeSanto & Co. is pleased to announce the sale of Outside Analytics, Inc. (“OA” or the “Company”) to SMX, a portfolio company of OceanSound Partners.

Headquartered in Broomfield, CO, OA is a leading provider of remote sensing, real-time processing, analytics, and visualization solutions to address data-driven challenges across a variety of space-based mission areas. Through its software and technology solutions, OA transforms raw data into actionable intelligence for various commands and deltas of the U.S. Space Force, the broader Department of Defense, and the Intelligence Community to address evolving National Security threats.

OA specializes in architecting and delivering Software Engineering solutions that serve the full spectrum of ground system and satellite domains, from LEO to GEO and beyond. The Company delivers solutions across its three core capabilities: sensor data processing, space-ground systems, and data analytics and visualization. OA’s innovative software solution, Deneir, provides real-time analytics and visualization for U.S. Space Force Guardians through its 4D web / mobile platform and has become the common operating environment platform. Deneir is deployed as part of multiple U.S. Space Force modernization efforts for Missile Warning and Battle Space Characterization.

The partnership with SMX will further accelerate OA’s growth in the National Security Space market as well as provide mission critical software engineering capabilities that will enhance SMX’s offerings, supporting application modernization and solution development at scale.

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

  • High-end, next-generation technologies in support of National Security missions remain attractive targets given increasing geopolitical tensions and budgetary priorities;
  • Continued interest and investments in companies with cutting-edge space capabilities and solutions given tailwinds in this ecosystem; and
  • Buyers with explicit growth strategies, industry knowledge, and private equity backing continue to deploy capital, particularly for companies with deep domain and subject matter expertise, established customer relationships, and differentiated proprietary technologies

Read more in the full press release.

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 200 industry transactions since 2008, 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.

KippsDeSanto & Co. advises Combined Systems Inc., a portfolio company of Point Lookout Capital Partners, L.P., on its sale of certain assets to Day & Zimmermann

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KippsDeSanto & Co. advises Combined Systems Inc., a portfolio company of Point Lookout Capital Partners, L.P., on its sale of certain assets to Day & Zimmermann

KippsDeSanto & Co. is pleased to announce the sale of certain assets of Combined Systems Inc. (“CSI” or the “Company”) to Day & Zimmermann, the century-old, family-owned provider of construction, engineering, maintenance, staffing, and defense solutions for leading corporations and governments around the world.

Founded in 1981 and headquartered in Jamestown, PA, CSI is an established leader in the engineering, manufacturing, and marketing of pyrotechnic-initiated devices, precision military components, non-lethal and tactical munitions for the global defense and law enforcement communities. CSI’s customers include the U.S. Army, U.S. Marine Corps, U.S. Navy, local U.S. law enforcement agencies, and foreign military and security forces around the world.

We believe this transaction demonstrates several key trends in the M&A market:

• Continued use of divestitures for portfolio reshaping and realignment of long-term strategic plans
• Significant value attributed to acquiring operational synergies and tenured customer relationships
• Mission critical programs aligned with Department of Defense budgetary trends remain coveted

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 200 industry transactions since 2008, 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.

KippsDeSanto & Co. advises Aethercomm, Inc. on its sale to Frontgrade Technologies, a portfolio company of Veritas Capital

KippsDeSanto & Co. advises Aethercomm, Inc. on its sale to Frontgrade Technologies, a portfolio company of Veritas Capital

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KippsDeSanto & Co. advises Aethercomm, Inc. on its sale to Frontgrade Technologies, a portfolio company of Veritas CapitalKippsDeSanto & Co. advises Aethercomm, Inc. on its sale to Frontgrade Technologies, a portfolio company of Veritas Capital

KippsDeSanto & Co. is pleased to announce the sale of its client, Aethercomm, Inc. (“Aethercomm”), to Frontgrade Technologies (“Frontgrade”), a portfolio company of Veritas Capital (“Veritas”).

Headquartered in Carlsbad, California, Aethercomm is a leader in the design, development, and manufacturing of RF amplifier modules, sub-systems / systems and transceivers for mission-critical defense and space-capable platforms and technologies . The company’s regular and rackmount RF amplifiers and switches are used by all branches of the Armed Forces and some of the world’s largest and most respected defense contractors. Aethercomm has a stellar track record of engineering and manufacturing RF power amplifier modules, sub-systems / systems, and transceivers and other technologies that are tested and proven to operate without fail on the battlefield and in extreme situations in support of the warfighter.

Founded in 1999, Aethercomm specializes in the engineering and manufacturing of high-power SSPA modules that support global cross-domain warfighter connectivity across space, airborne, radar, electronic warfare, and other applications. By combining Aethercomm’s active RF amplifiers, switches and hardware with Frontgrade’s existing antenna solutions, the company will now offer a complete, integrated and turnkey solutions for the most complex defense and space missions.

Aethercomm will operate as a division of Frontgrade and be rebranded as Frontgrade Aethercomm.

This transaction highlights several key trends in the defense and space electronics markets:

  • Responsive space continues to be a high priority for SDA and U.S. military infrastructure, with an emphasis on high-volume, low-cost satellites to support the Department of Defense (“DoD”) mission of Joint All Domain Command and Control (“JADC2”)
  • Emergence of “next-gen” agile defense primes delivering high-volume, modular systems to support defense and space missions creating demand for defense and space electronics subcontractors with high-volume manufacturing and best-in-class research and development capabilities supporting the electronic warfare, radar, and communication markets
  • Private equity activity in the market remains active as “buy-and-build” strategies continue to augment portfolio companies with add-on targets with strong customer reputations, industry-leading capabilities, and ability to augment performance on existing platforms and contracts

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 200 industry transactions since 2008, 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.

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.

KippsDeSanto & Co. advises Unitech Composites, Inc. on its sale to APEX Space and Defense Systems, a portfolio company of Charger Investment Partners

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KippsDeSanto & Co. advises Unitech Composites, Inc. (“Unitech”) on its sale to APEX Space and Defense Systems (“APEX”), a portfolio company of Charger Investment Partners. Unitech is a portfolio company of Acorn Growth Companies, Caltius Structured Capital, and The Edgewater Funds.

Headquartered in Hayden, Idaho, Unitech is a leading provider of advanced structural and non-structural composite components and assemblies for defense, business / general aviation, and commercial aerospace platforms. The Company’s products yield weight reduction and reduced cost over platform operational lifecycles compared to traditional metal products that enable greater payload weights to execute demanding missions for warfighters and enhance travel experiences for general aviation and business jet passengers. The Company supports several marquee platforms across major fixed-wing (e.g., F-35 Lightning II, E-7 AEW&C) and rotary-wing (e.g., V-22 Osprey, CH-47 Chinook) aircraft, providing mission-critical composite products with high tolerance requirements such as a functionally essential structure for operating F-35 aircraft with Collins Aerospace; 35+ unique airframe components for the F-35 with Lockheed Martin; airframe structures for major turboprop aircraft; and other specialty components including gap seals, connectors, ducting, winglets, and niche armament structures on various military and business jet aircrafts.

Unitech delivers advanced manufacturing methods specific to composite manufacturing (e.g., autoclave cured epoxy structural parts, fabric-reinforced thermoset resins, carbon fiber reinforced toughened epoxy laminate, etc.). Demonstrated consistent delivery and quality results enables Unitech to maintain 55+ customer certifications with major Tier 1 integrators including Boeing, Airbus, Sikorsky, and Northrop Grumman. Unitech’s partnership with APEX augments the latter’s existing portfolio of space, Unmanned Aerial Vehicle (“UAV”), and defense-focused composites products and customers.

Unitech joins two of Charger’s recent acquisitions, Advanced Composite Products & Technology and All American Racers, to form APEX Space & Defense Systems. APEX and its three unique business units delivers innovative, lightweight and durable material manufacturing solutions for the space, defense and mission-critical infrastructure sectors.

This transaction highlights several key trends in the Aerospace and Defense composite markets as supply chain pressures continue to drive demand for providers of complex composite products:

  • Growing demand for end-to-end capabilities spanning from design engineering and manufacturing to testing and finishing across entire program lifecycles from original equipment manufacturing (“OEM”) through to aftermarket (“AM”) spares.
  • Continued investor interest in critical pieces of high-priority defense platform supply chains, including the F-35 Lightning II, and E-7 AEW&C.

Read more in the full press release.

About 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 200 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.

KippsDeSanto & Co. advises Pegasus Steel on its sale to ACP

KippsDeSanto & Co. advises Pegasus Steel, LLC on its sale to Arlington Capital Partners

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KippsDeSanto & Co. advises Pegasus Steel, LLC on its sale to Arlington Capital Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, Pegasus Steel, LLC (“Pegasus” or the “Company”), to Arlington Capital Partners (“Arlington”), a Washington, DC-area private equity firm.

Headquartered near Charleston, South Carolina with approximately 350,000 square feet of manufacturing space, Pegasus is a leading provider of complex fabricated steel structures used for the construction of submarines, aircraft carriers, and other naval and industrial systems primarily to the U.S. Department of Defense (“DoD”). Employing a comprehensive array of advanced steel processing equipment, Pegasus cuts, forms, machines and welds a broad range of materials and can process small piece parts to extremely large and complex welded fabrications.

Pegasus is a critical vendor in the supply chain for the Navy’s highest priority programs, providing complex large-scale components to the Columbia- and Virginia-class submarines, as well as the Gerald R. Ford-class aircraft carriers. Pegasus’s large-scale, highly-specialized nuclear welding expertise requires years of production experience, exacting standards, skilled, certified employees, and specialized equipment.

The acquisition is a new platform for Arlington, allowing Pegasus to partner with Arlington at a key inflection point in its growth trajectory to build towards becoming a leading ‘tier one’ supplier in the nuclear Navy supply chain.

This transaction highlights several key trends in the Aerospace and Defense markets as submarine and aircraft carrier supply chain pressures limit the Navy’s ability to meet future fleet goals and deterrence objectives:

  • Nuclear shipbuilding remains a critical priority in the naval supply-chain, with the Navy investing towards building out the domestic industrial base
  • Growing demand for suppliers that can support large-scale shipbuilding driven by the Navy’s need to modernize and replace aging fleets
  • Nuclear-powered submarines, such as the Columbia- and Virginia-class, will continue to play a critical role for the Navy over the next two decades
  • Private equity activity in the market remains high as “buy-and-build” strategies continue to establish portfolio companies with strong customer reputations, industry-leading capabilities, and ability to scale

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 200 industry transactions since 2008, 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.

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.

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

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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