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.

 

KippsDeSanto & Co. Advises Avenge, Inc. on its Sale to MAG Aerospace

KippsDeSanto & Co. is pleased to announce the sale of Avenge, Inc. to MAG Aerospace, supported by Clairvest Group, Inc.

Headquartered in Sterling, VA, Avenge provides flight operations and training services to U.S. government and commercial customers, including the U.S. Army and U.S. Special Operations Command (“SOCOM”).  Through its team of highly-trained and experienced pilots, flight operations managers, and aviation professionals, Avenge conducts global missions in support of high-priority Intelligence, Surveillance, and Reconnaissance (“ISR”) and Reconnaissance, Surveillance, Targeting, and Acquisition (“RSTA”) operations.  The Company’s core focus on delivering ISR and RSTA mission support is complemented by its expertise in pilot and maintenance training, as well as engineering, technical support, and logistics.

Since its founding in 1999, Avenge has leveraged its industry-wide relationships with key mission-focused leaders to provide quality support to DoD customers across the globe.  Serving both CONUS and OCONUS operations, Avenge has supported ISR missions in South America, the Middle East, Africa, and the Mediterranean.

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

  • Healthy appetite for companies delivering mission-critical capabilities
  • Buyers place value on targets with a robust pipeline of new opportunities and numerous identified avenues for growth across a diverse customer base
  • Highly-trained team of experienced professionals maintaining intimate program knowledge viewed as desirable and attractive for customers with evolving mission requirements

 

Press Release

 

MAG Aerospace Acquires Avenge, Incorporated

Woodbridge, Virginia – November 1, 2017 – MAG Aerospace (MAG) has acquired Avenge, Incorporated (Avenge). This acquisition adds over 100 aviation specialists, system operators, and flight operations management professionals to MAG, enhancing MAG’s already robust Manned ISR Operations and Training capabilities.

Avenge, founded in 1999, is a Sterling, Virginia-based, veteran-owned aerospace company specializing in Manned ISR (Intelligence, Surveillance, Reconnaissance) Operations and Training. Avenge has amassed over 400,000 hours of fixed-wing ISR operations experience and also offers pilot and sensor operator flight training for US military personnel and foreign partners.

“We have admired Avenge for years as a recognized industry leader in providing Manned ISR services,” said Joe Fluet, MAG CEO. “Avenge’s proprietary training program for special mission pilots will allow MAG to provide even better service to our customers who are doing critical work around the world. We are proud to add Avenge’s team of experienced professionals to the MAG family as we continue to set the standard for ISR operations, manned and unmanned.”

About MAG Aerospace

MAG Aerospace, headquartered in Woodbridge, Virginia, is a leader in providing and enabling real-time situational awareness to help its customers to make the world smaller and safer. Private equity backed by the Clairvest Group, MAG Aerospace delivers full-spectrum ISR Services (operations, training, and technical services) and other specialty aviation to federal, international, civilian, and commercial customers around the world. In 2016, MAG’s team of 900+ professionals operated 140+ manned and unmanned special mission aircraft during more than 68,000 flight hours on 5 continents in support of our customers’ missions. For more information, visit www.magaero.com.

KippsDeSanto & Co. Advises BEI Precision Systems and Space Company, Inc. on its Sale to investment affiliates of J.F. Lehman & Company

KippsDeSanto & Co. is pleased to announce the sale of BEI Precision Systems & Space Company, Inc. (“BEI PSSC” or the “Company”), a subsidiary of InnoVista Sensors Ltd., a portfolio company of The Carlyle Group, PAI Partners, and Schneider Electric, to investment affiliates of J.F. Lehman & Company. BEI PSSC is a leading provider of precision positioning sensor technologies, which it delivers through advanced design, manufacturing, and testing for space, defense, and critical infrastructure applications. The Company’s product portfolio includes a range of highly accurate, reliable, and resilient instruments for use in the most rugged and extreme environments.

Headquartered in Maumelle, AR, BEI PSSC provides custom precision positioning sensors and instruments for sensitive mission-critical Programs of Record. The Company’s product portfolio includes scanners, optical encoder-based positioning systems, and precision accelerometers. The Company is the inventor of the optical encoder and has designed and manufactured critical systems such as the Hubble Space Telescope Fine Guidance System. Today, BEI PSSC provides critical engineering expertise and hardware to support the Spherical Situational Awareness on the Joint Strike Fighter, high resolution and accuracy hardware for the Joint Polar Satellite System and the Geostationary Operational Environmental Satellite, and advanced acceleration monitoring for aircraft, such as the Blackhawk. BEI PSSC’s team of highly-qualified engineers holds a unique combination of mechanical, electrical, optical, and software engineering expertise required to develop, through in-house research & development, some of the most accurate positioning and sensor instruments in the market. Combining industry-leading engineering capabilities and domain knowledge of customer requirements has enabled BEI PSSC to greatly expand and influence U.S. space and defense capabilities.

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 platforms are in high demand
  • 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
  • Both strategic and private equity buyers remain actively focused on acquiring high-end design and manufacturing capabilities built on a foundation of proprietary processes and trade secrets
  • Private equity firms with a keen understanding of the aerospace and defense market are able to leverage today’s strong credit market to be competitive with strategic buyers

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

 

KippsDeSanto & Co., member FINRA / SIPC, is not affiliated with other companies mentioned herein

 

Press Release

J.F. Lehman & Company Acquires BEI Precision Systems & Space Company

NEW YORK – J.F. Lehman & Company (“J.F. Lehman”), a leading middle-market private equity firm focused on the defense, aerospace and maritime sectors, is pleased to announce that an investment affiliate has acquired PSSC Holding Co. and its wholly owned subsidiary, BEI Precision Systems & Space Company, Inc. (collectively, “BEI PSSC” or the “Company”).

BEI PSSC is a leader in high-accuracy positioning sensor technologies, providing advanced design, manufacturing, and testing for reliable and resilient products and systems. The Company’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.

“BEI PSSC has an exceptional reputation for providing unique and highly accurate sensors to prime contractors and system providers in the defense and aerospace markets,” said Steve Brooks, Partner at J.F. Lehman. “The Company has a longstanding history supporting many important programs. We look forward to partnering with management to support the continued growth and future success of the business through organic development and complimentary bolt-on acquisitions.”

Jones Day provided legal counsel to J.F. Lehman. Miller & Chevalier advised in the area of government contracting and import/export and defense security compliance. Debt financing for the transaction was arranged by BNP Paribas and Barings. Evercore Partners provided financial advisory services to J.F. Lehman in connection with the acquisition and KippsDeSanto & Co. advised BEI PSSC.

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KippsDeSanto & Co. Advises Seaward Marine Services, Inc. on Sale to MHI Holdings, LLC

KippsDeSanto & Co. is pleased to announce the sale of its client, Seaward Marine Services, Inc. (“Seaward Marine” or the “Company”) to MHI Holdings, LLC, a portfolio company ofStellex Capital Management. Seaward Marine is a leading provider of underwater hull cleaning and ship husbandry services, including underwater painting, inspections, repair sand maintenance, testing, and other specialized diving services, primarily to the U.S. Navy, as well as other commercial and government customers.

Headquartered in Norfolk, VA, and supported by additional locations in California, Florida, Hawaii, and Japan, Seaward Marine’s team of highly-trained professional divers has consistently delivered mission-critical support services around the globe for more than 35years. The Company’s reputation is established on a foundation of experience, deep domain knowledge and technical expertise, and an emphasis on safety and accountability. Seaward Marine was recently awarded another five-year, multimillion dollar contract with Naval Sea Systems Command worldwide underwater hull cleaning and ship husbandry services. The Company has developed extensive Intellectual Property and robust tools to complement its unique offerings, including advanced processes, procedures, and techniques surrounding cleaning and safety, rigorous training regimens and continuing education for Seaward personnel, and a proprietary database designed to store hull readings, diagnostics, high-quality imaging, and vulnerability reports.

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

  • Strategic acquirers remain focused on acquisitions of companies with unique skillsets and proprietary processes and intellectual property
  • Value continues to be placed on companies with established relationships withdefense and commercial customers, especially those aligned with evolving budget trends
  • Continued interest in transformational acquisitions that provide synergies and presentlong-term growth opportunities with enhanced profitability

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

KippsDeSanto & Co., member FINRA / SIPC, is not affiliated with other companies mentioned herein

 

Press Release

PE-backed MHI acquires Seaward and AME

NORFOLK, Va. – March 31, 2017 – MHI Holdings, LLC (“MHI”) announced today that it has completed the acquisitionsof Seaward Marine Services, Inc. (“Seaward”) and Accurate Marine Environmental, Inc. (“AME”). These are the first twoacquisitions since affiliates of the private equity firm Stellex Capital Management LP (“Stellex”) acquired MHI ShipRepair in 2015. The acquisitions mark the first expansion of the MHI business, broadening both the range andgeographic scope of services offered by the Company.

  • Seaward is a leading provider of underwater hull cleaning and ship husbandry services, including underwaterpainting, inspections, repairs and maintenance, testing, and other specialized diving services, primarily to theU.S. Navy, as well as other commercial and government customers. Seaward has delivered mission criticalsupport to the U.S. Navy for over 35 years out of its Norfolk-based headquarters and offices in Florida, California,Hawaii and, Japan.
  • AME performs bilge and tank cleaning, chemical cleaning, gas free engineering, and the removal of hazardousand non-hazardous materials for the U.S. Navy and commercial industries. AME, also headquartered in Norfolk,VA, performs work primarily across the East Coast of the U.S., including Virginia and Florida.

Tom Epley, Chief Executive Officer of MHI, commented, “Both Seaward and AME are world-class businesses that we have worked with and respected for many years. These additions to the MHI platform will allow us to better serve the needs of our customers both domestically and abroad.” Mr. Epley further commented, “Seaward and AME add capabilities that will augment MHI’s existing business, allowing the opportunity to bid on a wider variety of projects. In addition, both acquisitions expand the geographic reach of the MHI organization outside the port of Norfolk, a key development in the growth of our Company.”David Waxman, Managing Director at Stellex stated, “We believe these acquisitions are important steps to expandingMHI’s capabilities as one of the U.S. Navy’s leading ship repair contractors. We look forward to continuing to build theMHI platform while working with Tom and the team to grow each of its businesses.”Both Seaward and AME will continue to be run by their respective management teams.

About MHI Holdings, LLC

Headquartered in Norfolk, VA with nearly 500 employees, MHI is a major marine repair and conversion contractor serving Commercial ship owners, the U.S. Navy, Military Sealift Command and Maritime Administration and operators worldwide. MHI’s shipyard and full service pier is located in Norfolk, Virginia. The Company has earned their well-regarded reputation by providing accurate job pricing, reliability, quality and economical ship repair services to its clients for over 33 years.

About Seaward Marine Services, Inc.

Founded in 1972, Seaward is a leading provider of underwater hull cleaning, inspection, and repairs to the U.S. Navy and Commercial clients including underwater welding and painting. Headquartered in Norfolk, VA, and supported by additional locations in California, Florida, Hawaii, and Japan, Seaward’s team of highly-trained professional divers has consistently delivered mission-critical support services around the globe for more than 35 years.

About Accurate Marine Environmental, Inc.

AME was founded in 1994 and rapidly became a leader in the Hampton Roads area as an environmental service company providing marine and industrial tank and bilge cleaning services, environmental remediation, waste transportation and waste disposal services. Over the last 20 years, AME grew into one of the largest employee owned and operated environmental service companies in Norfolk. AME has a water front facility on the Elizabeth River complete with a 350’+ pier and state of the art water treatment plant.

About Stellex Capital Management LP

Stellex is a private equity manager that invests in and oversees US and European corporate assets. Stellex’s focus is on middle-market companies going through business or industry transitions, as well as special situation opportunities. Stellex seeks to identify and deploy capital in opportunities that have the potential to provide stability, improvement, and growth for its portfolio companies.

KippsDeSanto & Co. Advises ISP Optics Corporation on Sale to LightPath Technologies, Inc.

KippsDeSanto & Co. is pleased to announce that the sale of its client, ISP Optics Corporation (“ISP” or the “Company”) to LightPath Technologies, Inc. (NASDAQ: LPTH), as previously announced on August 8, 2016, has closed. The Company is a leading manufacturer of advanced infrared optical components, coatings, and optical sub-systems for aerospace and defense, educational and government labs, as well as original equipment manufacturers.

Headquartered in Irvington, NY, with significant manufacturing operations in Riga, Latvia, ISP provides a full range of high performance infrared lenses and coating services used in sensors, military electro-optical products, and infrared imaging cameras. The Company’s broad portfolio of products reflects its expertise providing in-house manufactured Medium Wave Infrared (“MWIR”) and Long Wave Infrared (“LWIR”) lenses, as well as athermal lens systems used in cooled and un-cooled thermal imaging cameras. The Company has also developed advanced manufacturing processes, including Computer Numerical Control (“CNC”) grinding and polishing, optical contacting, coating technologies, continuous and conventional polishing, as well as state-of-the-art diamond turning capabilities. These proprietary in-house technical capabilities, coupled with advanced machinery and experienced technicians, allow ISP to serve its global customer base with optical products and sub-assemblies custom-tailored for diverse specification requirements.

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

  • Strategic buyers remain focused on acquisitions that fill capability gaps around existing and future engagements, while also enabling the acquirer to expand its customer base through geographic expansion or increased scope of capabilities
  • Value continues to be placed on companies with attractive and established client relationships spread across strategically diverse end-markets
  • Continued interest in transformational acquisitions that provide revenue / cost synergies and present long-term growth opportunities alongside enhanced profitability

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

KippsDeSanto & Co., member FINRA / SIPC, is not affiliated with other companies mentioned herein