Industry Week in Review – December 14, 2012
Over the past week, North Korea demonstrated long-range rocket capabilities—violating United Nations (“U.N.”) Security Council resolutions—by sending a scientific satellite into orbit. The successful launch has triggered international uproar as it brings the nation closer to completing a comprehensive nuclear weapons system that can deliver a long-range nuclear warhead. Leader Kim Jong-Un’s decision to defy international order has placed China, the nation’s major trade partner and ally, in an awkward position. Chinese Foreign Ministry spokesman Hong Lei noted “China has always insisted on bringing peace and stability to the Korean Peninsula through multilateral dialogue. We hope relevant parties stay calm in order to maintain peace and stability on the Korean Peninsula.” Ultimately, China will play a major role in U.N. efforts to impede North Korea’s development of longer-range ballistic missiles.
Big Movers
Ducommun Inc. (Up 7.3%) – Shares are up this week after the company announced that it has received a contract from Boeing to produce titanium detail components and subassemblies for the Boeing 787 Dreamliner. The company also announced $15 million in follow-on contracts from Raytheon to continue producing a variety of interconnect and electronic assemblies for the U.S. Navy’s Tomahawk cruise missile.
LMI Aerospace Inc. (Up 7.0%) – Shares are up this week following the company’s acquisition of Valeant Aerostructures last week for $246 million. Shareholders were initially concerned with a lack of annual synergy targets; however, the deal is expected to be highly accretive to 2014 earnings.
Relevant Transactions
Exelis to acquire C4i Pty. Ltd., an Australian-based provider of advanced communications software used in air traffic management systems and mobile communications solutions for commercial, homeland security, and defense systems for approximately USD $16.8 million. The acquisition expands Exelis’ critical infrastructure solutions and builds on its presence in Australia.
RTI International to acquire MPR Associates Inc., a research and consulting firm that works in K-12 through adult education. The acquisition bolsters the company’s research capabilities. Terms of the deal were not disclosed.
Zodiac Aerospace to acquire Northwest Aerospace Technologies (“NAT”), a provider of engineering services and cabin retrofit program management services to airlines. The acquisition of NAT will allow Zodiac Aerospace to strengthen its presence in the cabin retrofit market. Terms of the deal were not disclosed.
