Industry Week in Review – April 5, 2013
Tensions on the Korean peninsula escalated over the last week as North Korea continued to make aggressive statements regarding attacks on U.S. bases in the Pacific, as well as against South Korea and Japan. Following the U.S. and South Korea’s military exercises in which the U.S. publically flew two B-2 Bombers over the peninsula, North Korea responded with heightened rhetoric against the two countries. In response to the escalated tensions and in an effort to ease pressure on Seoul, the U.S. deployed a missile destroyer off the Korean shore. The Pentagon also announced on Wednesday that it would deploy an advanced missile defense system called the Terminal High-Altitude Area Defense (“THAAD”) battery, developed by Lockheed Martin, to Guam. That same day, North Korea blocked access to the Kaesong Industrial Complex, a jointly run industrial park located in North Korea where South Korean companies employ northern workers. The blockade continued through Friday, when the zone was closed for a national holiday. On Thursday, North Korea reportedly moved a medium-range rocket to its eastern coast, and on Friday, the regime began notifying several embassies in Pyongyang that they should withdraw their delegations lest tensions escalate further. According to several statements made by such embassies, the warnings were being viewed as a tactic to keep tensions high, rather than a threat that violence was imminent.
Big Movers
Innovative Solutions & Support, Inc. (Up 42.4%) – shares were up for the week after the Company received a major contract award from Delta Airlines for NextGen Flat Panel Display System and Flight Management System upgrades to the MD-88 and MD-99 aircraft fleet. The $60+ million order includes complete systems integration, dual GPS navigation, and cockpit avionics, which will enable the Delta MD fleet to fly shorter flight paths and reduce fuel consumption.
Relevant Transactions
MidOcean Partners acquired Noranco, Inc., a provider of machined and sheet metal components, kits, and assemblies for landing gear, aero structure, and aero engine applications, for an undisclosed amount. The acquisition provides MidOcean with a leading platform in precision-machined aerospace components, upon which it plans to expand by helping Noranco add new capabilities, customers, and supported platforms.
Elgin Fastener Group acquired Vegas Fastener Manufacturing, a manufacturer of hot-forged bolts, nuts, and specialized parts for military shipbuilding, power generation, and industrial applications. The acquisition is the fifth add-on for Elgin since it was acquired by the Audax Group.
