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

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

 

KippsDeSanto & Co. advises Systron Donner Inertial, Inc. on its Sale to Investment Affiliates of Resilience Capital Partners

KippsDeSanto & Co. advises Systron Donner Inertial, Inc. on its Sale to Investment Affiliates of Resilience Capital Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, Systron Donner Inertial, Inc. (“SDI” or the “Company”), a portfolio company of The Carlyle Group, PAI Partners, and Schneider Electric, to investment affiliates of Resilience Capital Partners.

Headquartered in Concord, CA, SDI is a leader in the inertial sensors industry, with considerable domain expertise in the design and development of high performance, precision, quartz microelectromechanical systems (“QMEMS”). SDI’s QMEMS are utilized in guidance, navigation, control, and stabilization applications for various aircraft, unmanned autonomous vehicles, land vehicles, and precision guided weapons. QMEMS provides clear, continuously improving size, weight, power and cost (“SWaP-C”) advantages over alternative technologies. The Company’s product portfolio, anchored by its flagship SDI500 inertial sensor, includes a range of highly accurate, reliable, and resilient instruments used in many notable strategic platforms, including the Boeing 777x, MK48 / MK54 torpedoes, business jets, and military aviation and guided munitions programs.

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

  • Companies holding single-source status on well-funded, mission-critical Programs of Record and enduring commercial platforms create compelling strategic interest as acquisition targets
  • Significant value continues to be derived from companies with deeply-embedded relationships with key aerospace and defense customers, especially those aligned with favorable budget forecasts
  • Private equity buyers remain actively focused on acquiring high-end design and manufacturing capabilities built on a foundation of proprietary processes and trade secrets

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

Resilience Capital Partners Announces Acquisition of Systron Donner Inertial

March 26, 2019

CLEVELAND–(BUSINESS WIRE)–Resilience Capital Partners, a private equity firm that invests in middle-market companies, announced it has acquired Concord, California-headquartered Systron Donner Inertial. As the world’s leading supplier of quartz microelectromechanical systems (QMEMS) used in inertial sensing products that provide precision guidance, navigation and locational solutions, Systron Donner develops products that have been used in everything from business aircraft to fighter jets to the MARS Rover.

“Systron Donner is an important player in an industry that is critical to America’s future economic prosperity, leadership in aviation and national security,” said Steven H. Rosen, co-chief executive officer of Resilience Capital Partners. “Technology and innovation leadership is important for our nation’s future, and Systron Donner has been at the forefront of developing high-performing, made-in-America inertial sensors and systems for more than 50 years.”

Systron Donner’s QMEMS technologies are used in gyroscopes, accelerometers, inertial measurement units and inertial navigation system/GPS products that provide highly precise and reliable stabilization, geo-location, guidance, navigation and flight control solutions for aerospace, marine and land vehicles and systems.

Among the leading users of Systron Donner products are a leading defense contractor; a premier aerospace company; a civil and defense aerospace manufacturer; a leader in helicopter production; and a naval research agency. Systron Donner’s customers have frequently honored it for superior performance; in 2018, the firm received a leading defense contractor’s Supplier Excellence Award for the second consecutive time.

The future for such sensing products is highly promising. The market for inertial navigation systems alone is projected to grow from $9.54 billion in 2017 to $12.26 billion by 2022, a compound annual growth rate of 5.15 percent, according to an analysis by the business forecasting firm ResearchAndMarkets.

“Systron Donner’s proprietary technologies, the increasing size of the inertial sensing market and the company’s long history of relationships with a roster of blue-chip customers make this a company with strong potential,” said Rosen. “We look forward to working with the Systron Donner team to maximize this opportunity.”

The continued domestic development and manufacture of products for the aerospace and defense industries is seen as vital, given fears that a decline in American technology leadership could impair national security. Recent analyses, including a whitepaper authored by experts from the Institute for National Strategic Studies and a study prepared by a team assembled by the Office of the Director of National Intelligence and the U.S. Department of Homeland Security, have underscored these concerns.

An explanatory video about Systron Donner’s products is available on YouTube at https://youtu.be/6f1upekJbvE.

Terms of the transaction were not disclosed.

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

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

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 Ballard Power Systems Inc.

KippsDeSanto & Co. is pleased to announce the sale of the Power Manager business from Protonex (“Protonex”), a subsidiary of our client, Ballard Power Systems Inc. (NASDAQ: BLDP, “Ballard”) to Revision Military Ltd. (“Revision”).

Protonex designs and manufactures efficient, flexible power solutions for portable, remote, and military applications.  Protonex has deployed thousands of portable power solutions globally.  The Company’s products include both squad-based power manager systems, which can power any gear from any battery or charge any battery from any source, as well as man-wearable products which extend uptime of mission-critical devices and provide soldiers with full-power situational awareness.  In 2017, Protonex’s Squad Power Manager received signature approval for full rate production status, commonly known as “Milestone C” for the Mobile Soldier Power Program of Record.  This Program of Record includes a number of new devices focused on improving power and energy management on and around the soldier, including Protonex’s Squad Power Manager Kit (SPM-622), conformal wearable batteries, and man-worn power and data distribution devices, such as Protonex’s Vest Power Manager family.  Revision develops and supplies leading-edge protective equipment, including innovations in power management and integrated systems, for mission-critical military and tactical use.  The addition of Protonex to the Revision platform, along with planned increases in U.S. defense spending and achievement of Milestone C, creates significant synergies and a compelling growth opportunity for the combined business.

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

  • Companies continue to employ M&A to shape and refine their portfolios to better align their capabilities along core competencies
  • Buyers are focused on leveraging acquisitions to rapidly expand their existing product and solutions offerings
  • Buyers are seeking to gain a foothold in programs of record with access to well-funded and difficult-to-penetrate customers

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

VANCOUVER, BC, CANADA and SOUTHBOROUGH, MA, USA – Ballard Power Systems (NASDAQ: BLDP; TSX: BLDP) today announced that it has entered into a definitive agreement to divest certain non-core assets of its subsidiary, Protonex, related to the Power Manager business to Revision Military Ltd. (www.revisionmilitary.com), a private U.S.-based company, for up to $16.0 million in cash. Ballard will retain certain assets related to fuel cell propulsion systems for military and commercial unmanned vehicles.

Terms of the transaction include upfront consideration of $4.75 million to Ballard – payable in cash and note – subject to a customary working capital adjustment, and up to a further $11.25 million, based on achievement of specific sales objectives during a 12-month earn-out period. The transaction is expected to close within the next 60 days, subject to customary closing conditions.

Randy MacEwen, Ballard President and CEO said, “This divestiture is consistent with our strategy of continuous portfolio optimization. We decided to divest Protonex assets that are no longer aligned with Ballard’s strategic fuel cell focus, while retaining assets related to the unmanned vehicle market, under the Ballard brand. The divestiture reduces complexity while adding fuel for us to invest in our core fuel cell business.”

Mr. MacEwen continued, “We originally acquired Protonex to provide strategic diversification and to engage the U.S. military complex as a potential customer for portable fuel cell products. With the developing value proposition and attractive market opportunities for fuel cell electric vehicles or FCEVs in Heavy- and Medium-Duty Motive markets, including bus, truck, rail, marine and other applications, we are divesting the Power Manager business to focus on core fuel cell market opportunities. The Power Manager business is a good long-term business that better complements the Revision strategy.”

Jonathan Blanshay, CEO of Revision Military commented, “Revision is in the business of developing and supplying leading-edge protective equipment, along with innovations in power management and integrated systems, for mission critical military and tactical use. We are confident that our corporate platform, along with planned increases in U.S. defense spending and achievement of Milestone C, create a compelling growth opportunity for the Protonex Power Manager business.”

In 2015 Ballard paid approximately $17.5 million in shares and cash to acquire Protonex, which included the Power Manager business, a Solid Oxide Fuel Cells business which was divested in January 2018, and the unmanned vehicle business.

For additional information regarding unmanned vehicles, please visit http://www.ballard.com/markets/uav.

About Ballard Power Systems

Ballard Power Systems (NASDAQ: BLDP; TSX: BLDP) provides clean energy products that reduce customer costs and risks, and helps customers solve difficult technical and business challenges in power and energy. To learn more about Ballard, please visit www.ballard.com.

This release contains forward-looking statements concerning future events or developments, anticipated product performance, customer benefits and market demand for our products. These forward-looking statements reflect Ballard’s current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any such forward-looking statements are based on Ballard’s assumptions relating to its financial forecasts and expectations regarding its product development efforts, manufacturing capacity, and market demand.

These statements involve risks and uncertainties that may cause Ballard’s actual results to be materially different, including general economic and regulatory changes, detrimental reliance on third parties, successfully achieving our business plans and achieving and sustaining profitability. For a detailed discussion of these and other risk factors that could affect Ballard’s future performance, please refer to Ballard’s most recent Annual Information Form. Readers should not place undue reliance on Ballard’s forward-looking statements and Ballard assumes no obligation to update or release any revisions to these forward looking statements, other than as required under applicable legislation.

This press release does not constitute an offer to sell or the solicitation of an offer to buy  securities. The Ballard Common Shares have not been registered under the United States Securities Act of 1933, as amended, or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

KippsDeSanto & Co. Advises Capewell Aerial Systems on its Sale to Argosy Private Equity

KippsDeSanto & Co. Advises Capewell Aerial Systems on its Sale to Argosy Private Equity

KippsDeSanto & Co. is pleased to announce the sale of its client, Capewell Aerial Systems (“Capewell” or the “Company”) to Argosy Private Equity (“Argosy”).

Capewell is a leading designer, manufacturer, and distributor of aerial delivery, life support, and advanced tactical products for aerospace, defense, public safety, and law enforcement customers.

Capewell supports customers both domestically and internationally through a broad range of capabilities, to include design engineering, machining, life cycle support services, precision assembly, RF welding, and technical sewing.  Capewell’s differentiated solutions have led to enduring positions on key programs and platforms, including the Army Air Warrior program, the C-130 aircraft, and various Boeing commercial aircraft.  In-house engineering and internal R&D efforts drive new product development, resulting in a variety of proprietary solutions among Capewell’s numerous product lines.  Customers depend on these proprietary products – to include parachute releases, emergency descent devices, and helicopter hooks, among others – to ensure the safe and successful execution of a wide variety of missions.

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

  • The global aerospace / defense market remains robust, as equity private equity firms continue to seek opportunities to acquire firms with exposure to industry tailwinds and strong market fundamentals
  • Companies with differentiated and proprietary solutions, coupled with entrenched positions on key, well-funded platforms and programs continue to drive interest among acquirers throughout the aerospace / defense M&A market
  • Private equity firms continue to leverage strong credit markets and remain active in the aerospace / defense market to compete alongside strategic buyers

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 

CapitalWorks, LLC Exits Investment In Capewell Aerial Systems

September 13, 2018

CLEVELAND, OHIO – Cleveland private equity firm CapitalWorks, LLC announced the sale of its investment in Capewell Aerial Systems (“CAS” or the Company), a designer and manufacturer of highly advanced air soldier tactical gear, search & rescue, parachute, and aerial delivery products, to Argosy Private Equity. Terms of the deal were not disclosed.

After acquiring Capewell Holdings in 2014, CapitalWorks transformed Capewell from a component business to a full solution provider through its acquisition and integration of Aerial Machine and Tool.  The combined company, Capewell Aerial Systems, became the world leader in innovative tactical safety products for the air warrior.  “CapitalWorks added tremendous value through its network and strategy development.  CapitalWorks assembled a world class advisory board and provided us with management processes that have given us an advantage over our competitors,” said John Marcaccio, CEO and President of Capewell Aerial Systems.

Todd Martin, Managing Director of CapitalWorks, commented, “We have truly enjoyed the partnership with John Marcaccio, his team and the CAS Advisory Board.  While it is bittersweet, we are confident that John and his team have built a strong platform that will continue to create value. CAS is another example of CapitalWorks successfully partnering with management to position a business for future success.”

CapitalWorks, LLC was advised on the transaction by KippsDeSanto and legal counsel was provided by Calfee, Halter, & Griswold.  Ironwood Capital was a trusted financial partner.

Working with Todd Martin on the transaction for CapitalWorks were Vice President, John Corrigan and Associate, Patrick Chang.

About Capewell Aerial Systems

Capewell Aerial Systems (http://capewellaerialsystems.com/) designs and manufactures highly advanced air soldier tactical gear, search & rescue, parachute, and aerial delivery products. CapitalWorks’ initial investment in the Company was made through its acquisition of Capewell Holdings in 2014, which was subsequently separated into two distinct operating companies (Capewell Systems and Ripley Tools). The acquisition of Aerial Machine & Tool by Capewell Systems created Capewell Aerial Systems. Ripley Tools remains a CapitalWorks portfolio company and is the leading developer and manufacturer of specialty hand tools for the fiber optic, telecom and utility industries as well as testing equipment for the fiber optic industry.

About CapitalWorks

CapitalWorks LLC (capitalworks.net) is a Midwestern and family-focused private equity firm that encourages knowledgeable investors to partner with it in finding, vetting and owning companies. Based in Cleveland, Ohio, CapitalWorks acquires lower middle-market companies in the niche manufacturing, value-added distribution, and business services industries and gives them the capital, support and freedom to grow. Recent acquisitions include C&M Conveyor, GEMCITY Engineering and Manufacturing, Paradigm Windows and Chemtron Corporation.  Founded in 1999, CapitalWorks’ investors are primarily successful entrepreneurs and executives who contribute to the evaluation and investment process.

KippsDeSanto & Co. Advises GenNx360 Capital Partners on its acquisition of Precision Aviation Group, Inc.

KippsDeSanto & Co. Advises GenNx360 Capital Partners on its acquisition of Precision Aviation Group, Inc.

KippsDeSanto & Co. is pleased to announce the acquisition by its client, GenNx360 Capital Partners (“GenNx360” or the “Company”) of Precision Aviation Group, Inc. (“PAG”), a portfolio company of PNC Riverarch Capital.  GenNx360 is a New York City-based private equity firm established in 2006 focused on acquiring middle market business services and industrial companies with proven and sustainable business models.

Headquartered in Atlanta, GA, with nine additional locations across the globe, PAG is a leading provider of maintenance, repair, and overhaul (“MRO”) and global supply chain network solutions for fixed and rotary-wing operations across a range of diverse end markets.  As the exclusive provider of its trademarked Inventory Supported Maintenance, Repair, and Overhaul (“ISMRO®”) capability focused on multi-site logistics and full lifecycle support, PAG delivers comprehensive support to varied general aviation, commercial, and military platforms.  In addition, the Company maintains its status as one of only a few companies, outside of Original Equipment Manufacturers (“OEM”), to collectively hold unlimited ratings granted by the Federal Aviation Administration (“FAA”).

The acquisition is expected to integrate GenNx360’s industry experience, OEM relationships, and operational expertise alongside PAG’s technical proficiency and talented management team to create new growth opportunities.   The partnership allows PAG to leverage GenNx360’s resources to enhance its current suite of products and services, providing PAG with multiple avenues to pursue growth within the aviation MRO services market.  Financial terms of the transaction were not disclosed.

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

  • Highly-fragmented aviation aftermarket, including distribution of parts and MRO services, provides opportunistic buyers diverse and numerous opportunities to consolidate the industry through tuck-in acquisitions
  • Significant value can be unlocked from acquisition targets with proprietary / differentiated technologies, such as Parts Manufacturer Approval (“PMA”) components and Designated Engineering Representative (“DER”) repairs
  • Attractive aviation market fundamentals, driven in part by increasing traffic demand, utilization, and commercial fleet size, are expected to continue into the foreseeable future
  • Sophisticated private equity buyers with intimate knowledge of target industries and explicit growth strategies can successfully compete against strategic buyers for coveted assets

Press Release 

GenNx360 Capital Partners (“GenNx360”), a New York-based private equity firm which invests in middle market business services and industrial companies is pleased to announce its acquisition of Precision Aviation Group, Inc. (“PAG” or the “Company”), effective July 26, 2018. PAG, established in 1993, is a leading provider of maintenance, repair and overhaul (MRO) and supply chain solutions for fixed and rotary-wing aircrafts serving diverse end markets.  Headquartered in Atlanta, Georgia, the Company operates out of nine locations in the United States, Canada, Australia, Brazil and Singapore.

“PAG is a leading provider of MRO services with a talented management team and a lot of growth potential.” said Daphne Dufresne, the GenNx360 Managing Partner who led the transaction. “PAG operates in a space that we know well and can add value through our industry relationships and operating initiatives.  We look forward to working alongside management to capitalize on future growth opportunities.”

David Mast, President & CEO of PAG, commented, “We are excited about partnering with GenNx360.  Their industry experience, OEM relationships, and operational expertise will allow us to quickly enhance our current suite of products and services.  Additionally, we are now poised to pursue the multiple avenues of growth available to us and expand on our mission of providing industry leading Aviation MRO services.”

Financial terms of the transaction were not disclosed.

About GenNx360 Capital Partners

GenNx360 Capital Partners is a private equity firm focused on acquiring middle market business services and industrial companies. We invest in companies with proven and sustainable business models in expanding industries with the objective of implementing the required operating changes to deliver cost efficiencies, accelerate growth, and generate strong financial returns. Target industries include industrial and environmental services, packaging, food and agricultural products and services, logistics and supply chain solutions, industrial machinery and components, infrastructure equipment and services, specialty chemicals, and aerospace and defense. GenNx360 was founded in 2006 and is headquartered in New York City. For more information on GenNx360 Capital Partners, please visit www.gennx360.com.

About Precision Aviation Group, Inc.

Precision Aviation Group (PAG) is a leading provider of products and value-added services to the worldwide aerospace and defense industry. With nine locations and more than 260,000-square-feet of sales and service facilities in the United States, Canada, Australia, Brazil, and Singapore, PAG uses its distinct business units and customer-focused business model to serve aviation customers through two business functions – Aviation Supply Chain, and its trademarked Inventory Supported Maintenance, Repair and Overhaul (ISMRO®) services. For more information on Precision Aviation Group, please visit www.precisionaviationgroup.com

For media inquiries about this press release, please contact:

GenNx360 Capital Partners

Carmen Rojas, Investor Relations Manager

Email: investorrelations@gennx360.com

Tel: 212.257.6772

KippsDeSanto & Co. Advises Germane Systems LC on its Sale to Mercury Systems

KippsDeSanto & Co. is pleased to announce the sale of our client, Germane Systems LC (“Germane” or the “Company”), to Mercury Systems, Inc. (“Mercury”).  Germane is an industry-leading designer, developer, and manufacturer of rugged servers, computers, and storage systems for command, control, and information (“C2I”) applications for critical U.S. and international defense programs and platforms, as well as commercial aerospace and industrial markets.

Based in Chantilly, Virginia and founded in 1997, Germane has grown to offer world-class design and manufacturing capabilities, with thousands of products deployed to customers around the globe.  Germane works closely with its customers to reach the optimal balance between competing imperatives for commercial-off-the-shelf (“COTS”) and highly customizable rugged computer solutions.  Germane’s products are designed to provide enhanced reliability and availability demanded by mission-critical applications in harsh environments.  Since inception, Germane has deployed tens of thousands of units across multiple domains and industries, serving key industry clients in the aerospace and defense sectors.  Germane has had an entrenched position on the technology insertion (“TI”) program for the naval subsurface fleet for over a decade and is also a supplier to a number of airborne platforms.

The acquisition of Germane, coupled with Mercury’s acquisition of Themis Computer in February 2018, creates a $100+ million C2I rugged server business for Mercury that will enhance its market penetration in the broader command, control, communications, computers, and intelligence (“C4I”) market and provide additional capabilities for its customers.  The combination with Themis also provides Mercury with key positions across air, land, and sea (surface and subsurface) defense platforms – through Themis’ naval surface fleet footprint and army platforms (WIN-T / JLTV) and Germane’s footprint on the naval subsurface fleet and airborne platforms.

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

  • Strategic buyers seek companies that provide scale and represent significant opportunity for growth through complementary market positioning
  • Acquisition targets with embedded positions on hard-to-penetrate, enduring aerospace and defense platforms achieve outsized valuations
  • Proprietary C4I solutions are high-priority interest areas in the aerospace and defense market

Press Release

August 01, 2018

Mercury Systems said Tuesday it has acquired Chantilly, Virginia-based rugged server maker Germane Systems for $45 million to further grow the portfolio of computers and storage systems for U.S. and international defense programs.

The deal comes nearly six months after Mercury closed its $180 million purchase of another rugged server company in Themis Computing. Mercury said it will combine Themis with Germane to create a business line of at least $100 million in annual revenue in rugged servers for command, control and information applications, Mercury said.

During Mercury’s fourth quarter and fiscal year-end earnings call Tuesday, CEO Mark Aslett said the company made both deals to enter different parts of the rugged server market.

“If you look at Themis, 80 percent of that business is in the naval surface fleet,” Aslett told analysts. “If you look at Germane, 80 percent of their business is targeting the subsurface. They’re pretty much in every U.S.-based submarine that is out there (and) they’ve got a growing business in airborne… so there’s very little overlap from a programmatic perspective.”

Investment bank KippsDeSanto advised Germane on the transaction with Mercury.

Andover, Massachusetts-based Mercury has been among the most active buyers over the past three years in a busy period for federal market merger-and-acquisition activity.

Including Germane and Themis, Mercury has put $620 million toward acquisitions of seven companies in the past 31 months to become a more formidable player in mission computing and C4I technologies — command, control, communications, computers and intelligence.

Mercury saw Themis in particular as a platform from which to make more acquisitions, Aslett said on the call.

That run of acquisitions has positioned Mercury to push past the $600 million-revenue mark for its current fiscal year 2019 started in July, the company said its year-end financial statement.

Including Germane, Mercury expects sales of $602 million-$624 million for FY 2019. The company reported FY 2018 sales of $493.2 million compared to $408.6 million for FY 2017.

KippsDeSanto & Co. Advises Aitech Rugged Group on its Sale to FIMI Opportunity Funds

KippsDeSanto & Co. is pleased to announce the sale of our client, Aitech Rugged Group (“Aitech” or the “Company”) to FIMI Opportunity Funds (“FIMI”).  Aitech is a leading supplier of rugged, hi-tech embedded computers for mission-critical aerospace, defense, and space programs worldwide optimized for harsh environments, in support of leading defense industry prime contractors and major global aerospace platform integrators.

Headquartered in Chatsworth, California, with operations in Herzliya, Israel, Aitech has established a reputation as a go-to supplier for advanced, high-performance, aerospace, defense, and space-qualified embedded computing and custom Commercial Off-The-Shelf Products (“COTS”) products used for Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (“C4ISR”) and signal and sensor processing.  Aitech’s industry-leading engineering capabilities combine advanced, customized COTS, custom hardware, and software to provide integrated systems to meet evolving customer needs and mission requirements.   The Company’s unique customization model positions Aitech and its customers with the ability to continuously stay at the leading-edge of technological advancement, significantly reducing risk, time-to-market, and obsolescence for highly-visible, mission-critical programs.

The acquisition of Aitech provides FIMI with a well-established defense electronics platform and global customer base.  FIMI intends to make an immediate internal investment into Aitech to enable the Company to capitalize on increasing demand for its products and create a highly-scalable, market-dominant rugged embedded computing solutions provider.  The acquisition represents another step in FIMI’s plan to make investments in non-Israeli companies and centralize their operations in Israel.  Aitech represents the fourth investment made by FIMI since November 2017 in a series of defense electronics / satellite businesses.  FIMI plans to grow the Company’s business with a focus on business development, research, and sales and marketing initiatives.

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

  • The global defense, aerospace, and space technology market remains robust as non-US firms continue to seek cross-border opportunities for strategic access
  • High-end signal processing and computing systems for C4ISR mission and space platforms remains a key priority for buyers
  • Companies with differentiated solutions and entrenched positions on key, well-funded platforms attract greater value in the M&A market

Press Release

August 02, 2018

Israel-based private equity firm FIMI Opportunity Funds is acquiring defense electronics company Aitech Rugged Group Inc. for $30 million, the firm announced Thursday.

Part of the sum will be used to buy Aitech from its current owners, a group of Netherlands-based investors, and the rest will be infused into the company to promote operational growth, the firm said in a statement.

About Aitech

Headquartered in Chatsworth, California, Aitech develops and manufactures commercial and military embedded computing solutions for the military and space industries. The company has several subsidiaries, including Aitech Systems Ltd., located in Tel Aviv suburb Herzliya, which employs 70 people out of Aitech’s 170 employees. The company reports annual revenues of $30 million-$40 million a year, and lists the Boeing Company and Lockheed Martin as customers.

In November 2017, Fimi acquired a controlling stake in Israel-based ORBIT Communication Systems Ltd., a company developing and manufacturing satellite communication systems, in Israel-based satellite imaging services company ImageSat International N.V., and in Israel-based Gilat Satellite Networks Ltd.

Fimi intends to support Aitech in both the financial and the administrative aspects, to bring the company’s full growth potential to fruition, said Fimi senior partner Gillon Beck, who led the acquisition, in a statement. The acquisition is another step in Fimi’s plan to make investments in non-Israeli companies and centralize their operations in Israel, Mr. Beck explained, adding that Fimi intends to unify Aitech’s various branches and relocate the center of its administration to Israel.

Aitech expects to see a significant increase in the scope of its operations in the next few years, CEO Moshe Tal said in a statement.

 

KippsDeSanto & Co. Advises Themis Computer on its Sale to Mercury Systems

KippsDeSanto & Co. is pleased to announce the sale of our client, Themis Computer (“Themis” or the “Company”) to Mercury Systems, Inc. (“Mercury”).  Themis is an industry leading designer, developer, and manufacturer of environmentally-resilient computing solutions that integrate the latest commercial technologies and minimize size, weight, and power (“SWaP”) for critical U.S. and international aerospace and defense programs.

Based in Fremont, California, Themis has established a reputation as a trusted provider of high-performance aerospace and defense electronics for mission-critical platforms.  Over the past 20 years, the Company has demonstrated its ability to be at the forefront of market shifts and rapidly adapt to evolving customer needs.  Through continuous advancement of innovative, dependable, and durable products, Themis has entrenched itself in key aerospace and defense programs.  The Company works with end customers to define and develop comprehensive solutions that address the customer’s exacting requirements for ruggedness and SWaP.  Themis’ past performance, deep customer relationships, and strong domain knowledge have enabled the Company to deliver the next generation of high-end, ruggedized computing solutions for mission-critical U.S. Army, Navy, and broader Department of Defense (“DoD”) applications.

The acquisition of Themis provides Mercury with a platform to further penetrate the Command, Control, Communications, Computers, and Intelligence (“C4I”) market and expand Mercury’s capabilities in rugged servers and tactical cloud computing solutions.  Themis also broadens Mercury’s presence on some of the largest U.S. Navy and Army server programs in the U.S. DoD, including the Navy’s Common Display System and Common Processing System for the Aegis Weapon System, and Army’s Joint Light Tactical Vehicle (“JLTV”) and Warfighter Information Network – Tactical (“WIN-T”).  By supporting well-funded, decades-long aerospace and defense programs, Themis has developed a reputation for quality and is well-positioned for continued growth as the Company leverages Mercury’s capabilities to offer new products and solutions to its customers.

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

  • Continued focus on aerospace and defense electronics, particularly within the C4I market
  • Strategic buyers are increasingly focused on acquisitions that convey innovative capabilities that significantly expand the acquirer’s addressable market
  • Significant value accrues to companies with well-entrenched positions on critical aerospace and defense platforms and with relationships with key customers


Press Release

 

Mercury Systems To Acquire Themis Computer

Dec 21, 2017

  • Creates platform to further penetrate C4I market 
  • Broadens Mercury’s capabilities in rugged servers and tactical cloud computing solutions
  • Expands Mercury’s Navy and Army C4I program portfolio and customer footprint
  • Leverages Mercury’s investments in industry-leading embedded security capabilities

ANDOVER, Mass., Dec. 21, 2017 (GLOBE NEWSWIRE) — Mercury Systems, Inc. (NASDAQ:MRCY) (www.mrcy.com) today announced that it has signed a definitive agreement to acquire Themis Computer (Themis). Based in Fremont, Calif., Themis is a leading designer, manufacturer and integrator of commercial, SWaP-optimized rugged servers, computers and storage systems for U.S. and international defense programs.

Pursuant to the terms of the agreement, Mercury will acquire Themis for an all cash purchase price of $180 million, subject to net working capital and net debt adjustments. The acquisition and associated transaction expenses are expected to be funded through Mercury’s existing revolving credit facility.

Themis is on a rapid growth trajectory supported by a number of key design wins that are transitioning to production, and is currently expected to generate revenue of approximately $57 million for its fiscal year ending December 31, 2017 with adjusted EBITDA margins of approximately 23%. The acquisition is expected to be immediately accretive to adjusted EPS.

“The acquisition of Themis is consistent with our strategy and will expand our position in the growing Command, Control, Communications, Computers and Intelligence (C4I) market,” said Mark Aslett, Mercury’s President and Chief Executive Officer. “We view Themis as a platform for accelerating our growth organically and through future acquisitions. With a large installed base and designed-in as a sole-source provider of rugged, rack-mounted servers for some of the largest Navy and Army server programs in the U.S. Department of Defense (DoD), Themis complements Mercury’s presence in those areas. In addition to accelerating our efforts to penetrate the C4I market we believe we can offer additional capabilities, most notably our industry-leading security IP portfolio, to Themis’ customers to meet their unique requirements and growing demand for secure and trusted computing.”

“In summary, Themis is a strategic platform acquisition that will enable us to continue penetrating the C4I market and provide important new capabilities for our customers. We look forward to the Themis team becoming part of the Mercury family,” Aslett concluded.

The acquisition is subject to customary closing conditions, including approval pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The transaction is currently expected to close during Mercury’s fiscal 2018 third quarter ending March 31, 2018.

For more information, visit www.mrcy.com/acquisition or contact Mercury at (866) 627-6951 or info@mrcy.com.

About Themis Computer
Located in heart of Silicon Valley, at Fremont, California, Themis builds environmentally resilient computing solutions that integrate the latest commercial technologies and minimize size, weight and power (SWaP) for mission critical applications. Dedicated to providing reliable high performance computing platforms for military, aerospace, energy, and rugged commercial use; our products meet or exceed industry requirements, integrate the latest key technologies, and are proven to perform reliably under stress and in extreme environments. For more information, visit www.themis.com.

Mercury Systems – Innovation That Matters™ 
Mercury Systems (NASDAQ:MRCY) is a leading commercial provider of secure sensor and safety-critical processing subsystems. Optimized for customer and mission success, Mercury’s solutions power a wide variety of critical defense and intelligence programs. Headquartered in Andover, Mass., Mercury is pioneering a next-generation defense electronics business model specifically designed to meet the industry’s current and emerging technology needs. To learn more, visit www.mrcy.com.

Forward-Looking Safe Harbor Statement 
This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the acquisition described herein. You can identify these statements by the use of the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. Government’s interpretation of, federal export control or procurement rules and regulations, market acceptance of the Company’s products, shortages in components, production delays or unanticipated expenses due to performance quality issues with outsourced components, inability to fully realize the expected benefits from acquisitions and restructurings, or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, increases in interest rates, changes to cyber-security regulations and requirements, increases in tax rates, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2017. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

Contact:
Gerry Haines, CFO
Mercury Systems, Inc.
+1 978-967-1990

Mercury Systems and Innovation That Matters are trademarks of Mercury Systems, Inc. Other product and company names mentioned may be trademarks and/or registered trademarks of their respective holders.

Source: Mercury Systems Inc

http://ir.mrcy.com/news-releases/news-release-details/mercury-systems-acquire-themis-computer

 

 

KippsDeSanto & Co. Advises BTP Systems, LLC on its Sale to Serco Inc.

KippsDeSanto & Co. is pleased to announce the sale of BTP Systems, LLC (“BTP” or the “Company”) to Serco Inc (“Serco”).  BTP is a leading provider of design, engineering, manufacture, and sustainment of mission-critical satellite communications (“SATCOM”) terminals, radar systems, and other complex communications hardware, in support of the U.S. Navy, U.S. Air Force, and leading defense industry prime contractors.

Headquartered in Ludlow, MA, BTP offers a comprehensive suite of full lifecycle, end-to-end system capabilities, including systems engineering, design, prototype development, integration, testing, manufacturing, depot-level repair, and obsolescence engineering support, with expertise across shipboard and submarine SATCOM and MILSTAR terminals and antenna systems.  BTP operates one of the largest and most advanced near-field antennae ranges in the country, which, in addition to its compact antenna range, enables it to support a wide range of unique testing requirements.  With more than a decade of experience supporting nearly every Naval extremely high-frequency (“EHF”) and super high-frequency (“SHF”) SATCOM antenna system, such as SubHDR and Multiband Terminal, BTP has amassed considerable domain knowledge and expertise and has established a long-standing reputation in the industry as the go-to provider of complex technical SATCOM services.

The acquisition of BTP aligns well with Serco’s strategic growth objectives to expand capabilities and customer reach as BTP brings Serco critical new capabilities and additional U.S. defense customers.  In addition, Serco believes that the addition of BTP will position the combined company to take better advantage of the current demand for sustainment, overhaul, and testing services in the U.S. SATCOM marketplace.

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

  • Strategic buyers are actively focused on utilizing M&A to increase their exposure to the well-funded and growing U.S. defense market;
  • Strategic buyers rely on M&A to add high-end and differentiated capabilities; and
  • Buyers continue to place premium values on companies with entrenched and defensible positions with key customers on mission-critical programs.

 

Press Release

 

Serco Announces Agreement to Acquire BTP Systems

 RESTON, VIRGINIA – October 24, 2017 – Serco Inc., a provider of professional, technology, and management services, announced today that the Company has entered into a definitive agreement to acquire BTP Systems, LLC (“BTP”), headquartered in Ludlow, MA with operations or personnel in Newport RI, Reno NV, San Diego CA, Charleston SC, Groton CT, Norfolk, VA, Chesapeake VA, and Mayport FL.  The acquisition, subject to required approvals, is expected to close by the end of this year.

The proposed acquisition would support Serco’s strategic growth plan in the defense sector by enhancing its portfolio of Command, Control, Communications, Computers, Combat Systems, Intelligence, Surveillance and Reconnaissance (C5ISR) service offerings and broadening its Federal government client base.

BTP provides satellite communications (SATCOM), radar modernization, operations and maintenance, and sustainment services that enable customers to extend the lives of existing systems and achieve phased upgrades with new technology to enhance operational capability. BTP specializes in areas including obsolescence engineering, systems engineering services, test equipment and design, and field engineering services, and maintains a near-field and compact antenna test range at their Ludlow, MA headquarters. The company’s expertise spans shipboard and submarine SATCOM antenna systems, MILSTAR command post antennas, and radar antennas.

“BTP Systems is an excellent addition to our rapidly growing C5ISR business supporting naval modernization and sustainment for ship, shore, and hardware integration projects,” said Dave Dacquino, Chairman and CEO of Serco Inc. “This acquisition will provide Serco with capabilities in the engineering, overhaul, repair, and sustainment of SATCOM and radar systems that expand our scope of solutions for existing customers and brings Serco to new customers including Hill Air Force Base, the Naval Undersea Warfare Center, and Naval Air Systems Command.

The demand for sustainment, overhaul, and testing services is growing rapidly as many of the SATCOM and radar systems both on ships and on shore require significant upgrades and maintenance to extend their useful lives. BTP supports major SATCOM integrators with specialized RF engineering, small lot production, and RF testing services. Serco’s expertise in systems integration and large-scale modernization projects helps customers achieve goals for operational enhancement and timely and cost-effective completion with a high level of confidence.

Referring to the proposed acquisition, BTP Systems President and Founder Bud Beaudry commented, “Becoming a part of Serco will generate many immediate and long-term benefits to our customers and employees.  Our employees’ dedication to our customers has resulted in tremendous success throughout BTP’s 14-year history.  By joining with Serco, we will provide our clients even greater services, and will offer our employees additional opportunities for professional growth.  This is a great achievement for all involved as we join a company that has the scope, scale, and track record required for success, and a stellar reputation in the defense sector.”

About Serco Inc.

Serco Inc. is a leading provider of professional, technology, and management services. We advise, design, integrate, and deliver solutions that transform how clients achieve their missions. Our customer-first approach, robust portfolio of services, and global experience enable us to respond with solutions that achieve outcomes with value. Headquartered in Reston, Virginia, Serco Inc. has approximately 8,000 employees and annual revenue of $1 billion. Serco Inc. is a wholly-owned subsidiary of Serco Group plc, a $5 billion international business that helps transform government and public services around the world. More information about Serco Inc. can be found at www.serco-na.com.