14
Aerospace & Defense Quarterly Update Q2 2015
Aerospace & Defense
Quarterly UpdateQ2 2015
Quarterly Update
Aerospace & Defense
Q2 2015
2
2 Executive Summary
3 Top 5 M&A Deals
4 M&A Deal Volume
5 A&D Transaction Multiples
6 Deal Spotlight
7 Buyer Spotlight
8 Platform Overview
9 All M&A Transactions
14 About Janes Capital Partners
There were 67 A&D deals announced in Q2 2015, which was adecrease from the number of deals announced during Q1 2015.Year-over-year quarterly transaction volume decreased by 9.5%compared to the 74 deals announced during Q2 2014.
Average disclosed deal size during the quarter decreased to $276million compared to $675 million during Q1 2015.
The most active segments in terms of number of M&A deals were:
– MRO & Logistics (12 deals)
– Government Services, IT Services and Software (8 deals)
– Machined & Cast Parts (6 deals)
The top 3 segments in terms of disclosed transaction values were:
– MRO & Logistics ($2,322 million)
– Defense Electronics ($1,143 million)
– Aircraft Interiors ($411 million)
Number of Deals by Quarter
IN THIS ISSUE EXECUTIVE SUMMARY
Quarterly UpdateQ2 2015
Aerospace & Defense
Valuation Metrics
Target Target Description AcquirorAnnounced
Date
Implied TEV
($M)
TEV/
Revenue
TEV/
EBITDADeal Type(s)
PR PB I
PU PB
PS
PU I
PS I
CTC Aviation Group Ltd, through its subsidiaries, operates as an
airline training organization. Also, it manages and operates
private jets on behalf of its clients and provides new and
contract pilots to the aviation industry.
05/28/15
$265.0 1.2x 12.0x
2.5x na$218.5
Kratos Defense & Security Solutions, Inc. Electronic Products
Division comprises operations manufacturing electronic systems,
subsystems and components for electronic warfare, missile,
radar, intelligence surveillance and reconnaissance programs.
06/01/15
12.0x
Pexco Aerospace is a global leader in the manufacturing of
extruded plastic interior parts for use in the commercial
aerospace industry. A vast majority of revenues are sole source,
the majority is proprietary and nearly all revenue comes from
the commercial transport market.
04/30/15 $336.0 2.2x 10.0x
1.3x 11.9x
OM Group, Inc. operates as a technology-driven industrial
company worldwide. It operates through Magnetic Technologies,
Battery Technologies, and Specialty Chemicals segments. Its
Battery Technologies division serves the aerospace industry
specifically.
06/01/15 $1,037.0 1.0x
StandardAero Business Aviation Services, LLC provides
maintenance, repair, and overhaul (MRO) services and custom
solutions. It provides MRO for aircraft and rotorcraft engines,
auxiliary power units and components.
05/26/15 $2,275.0
3
Private Equity SellerPS Private Equity BuyerPBPublic SellerPU Private SellerPR International DealI
Top 5 M&A Deals this Quarter
Source(s): CapIQ, Dacis, company reports, press releases
Quarterly UpdateQ2 2015
Aerospace & Defense
4
M&A Deal Volume
Average Size of Disclosed Deals and Total Disclosed Volume(last 13 quarters)
Number of Deals by Quarter (last 13 quarters)
Number of Deals by Segment(Q2 2015)
Average deal size decreased over last quarter from $675M to $276M
– Total disclosed deal volume decreased by nearly half of Q1 2015 deal
volume, to $5,244M in Q2 2015
There were 67 A&D deals announced in Q2 2015, which was a decrease from
the 75 deals announced during Q1 2015
The most active segments ranked by total number of deals were:
– MRO & Logistics
– Government Services, IT Services and Software
– Machined & Cast Parts
Volume of Deals by Segment(Q2 2015)
Source(s): CapIQ, Dacis, company reports, press releases
Quarterly UpdateQ2 2015
Aerospace & Defense
TEV / EBITDA All A&D Transaction Multiples by Quarter (last 13 quarters)
Quarterly TEV / EBITDA Transaction Multiples
The average TEV / EBITDA transaction multiple over the last 13 quarters across all A&D transactions was 10.3x. Of the over 700 deals tracked by Janes Capital Partners over this period, only 74 reported TEV / EBITDA multiples
As expected, multiples vary widely by segment with Controls & Systems (15.4x), Specialty Defense Systems and Services (13.9x) and Components & Subsystems (11.9x) generating the highest valuations
TEV / EBITDA Transaction Multiples by Segment(last 13 quarters)
Source(s): CapIQ, Dacis, company reports, press releases
5
Quarterly UpdateQ2 2015
Aerospace & Defense
On May 26, 2015, Dubai Aerospace Enterprise (“DAE”)entered into a definitive agreement to sell 100% of itsinterest in StandardAero (“the Company”) to VeritasCapital (“Veritas”) for approximately $2.3 billion. In2007, DAE acquired StandardAero for $1.9 billion fromThe Carlyle Group in a deal that involved a $435 millionlolololo
6
Deal Spotlight
StandardAero Key Figures
Headquarters Scottsdale, AZ
Employees ~3,500
Revenue(1) ~$1.7B
Veritas Capital Acquires StandardAero
StandardAero’s CEO, Russel Ford, commented, “StandardAero is excited to partner with Veritas Capital aswe enter this new chapter of our growth. We would like to thank DAE for its many years of support, andwe wish them well with their future investments. StandardAero is fundamentally a very strong business,and this change in ownership will ensure that we continue to achieve our business plans and build anaggressive trajectory for growth. As we move to finalize the transaction, we look forward to working withVeritas Capital and to continue serving our customers as one of the world’s largest independent MROservice providers.”
Deal Term Summary
Total Deal Value ~$2.3B
TEV/EBITDA Multiple ~11.9x
TEV/Revenue Multiple ~1.3x
Estimated Transaction Structure
Debt/EBITDA Multiple ~7.5x
Deal Rationale
StandardAero MRO Capabilities
• Focus on core operations: DAE plans to focus on its core business of aircraft
leasing and to expand its current $3.7 billion portfolio through an aggressive
acquisition strategy
• Finance growth in leasing portfolio: In 2014, DAE ordered 40 aircraft to grow its
leasing portfolio from ATR Aircraft in a deal worth $988 million
Exit Rationale
(DAE)
• Accelerate growth: The transaction will allow StandardAero to accelerate its
growth by leveraging Veritas’ global relationships and in-market presence
• Create a new strategic platform: StandardAero will become a cornerstone of
Veritas Capital Fund V and allow for add-on MRO acquisitions in the commercial
and military aerospace markets
Acquisition Rationale(Veritas)
Strategic Rationale
Benefits from the Transaction
Transaction Summary
Commentary
StandardAero OverviewFounded in 1911, StandardAero is a leading provider of maintenance, repair, and overhaul services(“MRO”) to business, commercial aerospace and defense clients in over 80 countries. The Company’ssuccess stems from several synergistic mergers that exponentially increased capabilities and generatedunprecedented customer commitment and value. Its MRO capabilities for fixed- and rotary-wingedaircraft include auxiliary power units and components, airframe services, FAA authorized avionics,comprehensive engineering services, and custom interior and exterior services. As an OEM-authorizedengine MRO, it has experience on 10 different platforms, with over 20,000 engines processed to date.StandardAero is approved for factory-authorized services, providing airframe services ranging from minorrepairs to major altercations on FalconJet, Bombardier and Beech Hawker aircraft. StandardAero isOrganizational Design Authority (“ODA”) authorized and can provide radio and instrument ratings to itsclients. Located in Dallas, TX, the Company’s Associated Air Center is a world leader in interior completionfor business jets and large transport aircraft. The Company currently employs over 3,500 personnel, whileproviding a service network of 13 facilities strategically located in the U.S., Canada, Europe, Singapore andAustralia, along with 50 sales and field service locations.
(1) For FY2014 ending December 31, 2014
Engines Airframes VIP Aircraft
Avionics Component Repair Custom Solutions
Strategic U.S. Presence
Sources: Press Releases and Company websites
Engine Capabilities Revenue Breakdown
StandardAero Management
Russell Ford CEO
Mike Scott CFO
divestiture of what is now the Landmark Aviation chain of fixed based operators. Veritas intends tofinance the deal through an estimated $925 million term loan, $485 million in senior notes, a $20 milliondraw down from a revolver and $845 million in equity contribution. The $485 million eight-year seniornotes, with a three year no-call protection, are being syndicated by Jefferies and KKR. Veritas expectsStandardAero’s leverage to be more than 7.5x EBITDA, post closing.
Sponsor’s Equity 37%
Term Loan 41%
Senior Notes 21%
Revolver 1%
Quarterly UpdateQ2 2015
Aerospace & Defense
Chairman and CEO Klaus Kleinfeld
CFO William Oplinger
VP, Business Development Daniel Cruise
Founded in 1888, New York-based Alcoa Inc. (“Alcoa”or “the Company”) produces and manages primaryaluminum, fabricated aluminum and aluminaworldwide. The Company operates through foursegments: Alumina, Primary Metals, Global RolledProducts and Engineered Products and Solutions.Since pioneering the aluminum industry over 125years ago, Alcoa has expanded its value-addedproduct portfolio offerings to include products madeof titanium, nickel and aluminum for customers inover 30 countries. Sales of primary aluminum andbooololalumina account for approximately 40% of total revenue. The Company produces products utilized invarious industries, including aerospace, defense, automotive, rail, energy and shipping industries.
Business Segments
7
Buyer Spotlight Alcoa Inc. (NYSE:AA)Description
Mergers and acquisitions continue to be a centralcomponent of Alcoa’s growth strategy. In the pastfive to six years, the Company has completedseveral bolt-on acquisitions to increase exposure tothe recycling and aerospace industries. Alcoa alsospun-off several international rod mill entities, asthe Company shifts its focus to core, value-addedproduct offerings.
Titanium is the fastest growing metal used inaerospace production. Accordingly, the Companymade its largest acquisition, RTI, in the past fiveyears in the first quarter of 2015 to increaseexposure to titanium, specifically within theaerospace market. Analysts questioned the price ofthis acquisition, given Alcoa paid a multiple of 9.4x2016 EBITDA for a company which had been tradingat a multiple of 5.9x TTM EBITDA.
The Company expects to continue to grow its value-added product portfolio through acquisitions,primarily within the aerospace market. Select Recent Acquisitions
Key Financials
Headquarters New York, NY
Founded 1888
Employees 59,000
Market Cap $13,630
Net Debt $7,478
Preferred Stock $58
Minority Interest $2,324
Enterprise Value $23,490
Revenue $24,332
EBITDA $4,029
Recent M&A Strategy
Share price performance
(1) Market data and LTM Financial data as of 6/30/15
Fiscal year data as of 12/31 and LTM Financial data as of 6/30/15, market data as of filing date
Key Management
Alcoa Highlights ($M) (1)
Alumina (19% of Revenue)The Alumina segment is the world's leading source of aluminas for the chemicals industry. The segmentdraws on a network of four global alumina refineries, located in Australia, Brazil, U.S. and Spain, toproduce commodity-grade product to meet the demands of manufacturers worldwide.Engineered Products and Solutions (21% of Revenue)The Engineered Products and Solutions segment offers titanium, super alloy, aluminum castings,fasteners, wheels, integrated aluminum structural systems, forgings and hard alloy extrusions. Theproducts serve five main end markets: aerospace, industrial gas turbines, building, construction andcommercial transportation through a global network of distributors.Global Rolled Products (26% of Revenue)The Global Rolled Products segment produces aluminum plate, sheet and foil. The segment includes rigidcontainer sheet, which is sold directly to customers in the packaging and consumer industries. It providessheet and plate for use in the aerospace, automotive, commercial transportation, building andconstruction markets.Primary Metals (34% of Revenue)The Primary Metals segment is a global network of primary aluminum facilities that produce a full-line ofcommodity-grade aluminum ingot, high-purity ingot, extrusion billet, casting alloys, cast rod and rollingingot. Alcoa has recently begun to transition into offering its customers an array of value-added forms ofprimary aluminum.
Date Target Description
3/9/15 RTI International Supplier of titanium to the aerospace and automotive industries
12/15/14 TITAL GmbH Provider of titanium and aluminum structural castings for aircraft
6/25/14 Firth Rixson Limited Designs and manufactures aerospace jet engine components
1/31/11Valley-Todeco & Linread
Produces fasteners, fastening systems and bearings for aircraft
($ in millions) 2011 2012 2013 2014 LTM
Total Revenue $24,951 $23,700 $23,032 $23,906 $24,332
EBITDA 3,268 2,103 2,480 3,446 4,029
EBITDA Margin 13.1% 8.9% 10.8% 14.4% 16.6%
TEV / Revenue 0.9x 0.9x 1.0x 1.2x 1.0x
TEV / EBITDA 6.7x 9.6x 8.9x 8.4x 5.8x
Cash & ST Investments $1,939 $1,861 $1,437 $1,877 $1,311
Sources: Press releases and company websites
Quarterly UpdateQ2 2015
Aerospace & Defense
Description
The G500 and G600 represent a new family of sophisticated business jets produced by Gulfstream. The
new series will resemble the flagship G650’s exterior but will feature several changes. One such change isGulfstream’s decision to utilize Pratt & Whitney’s PW800 turbo fan engine, a shift from its longstandingpartnership with Rolls-Royce. It will also feature updates such as U.S. manufactured wings by Gulfstream,
Honeywell Symmetry avionics with 10 integrated touchscreens, and active-control sidesticks instead oftraditional yokes. The signature oval windows will continue to remain a hallmark on the G500 and G600.
In terms of range, the two airplanes fill the niche below the recently certified G650ER, G650 and the G550.The G600 and G500 will be more technologically advanced than previous platforms produced byGulfstream or its competitors. The series features the most advanced avionics in the industry, the most
spacious cabins in its class and low pressurized cabins. Gulfstream expects the high speed luxury jet to fillthe demand that its current fleet of business jets are unable to offer.
G500 & G600 Outlook
The development of the aircraft has been ongoing since 2009. The G500 made its first flight in May 2015,with the expectation of gaining certification in 2017 and first delivery to follow shortly after in 2018. Thefirst flight for the G600 is scheduled for 2017, with the first delivery in 2019. All factors considered, the
schedule might be ambitious for a pair of aircraft that will be among the most technologically advancedbusiness jets ever commercially manufactured.
Platform Overview Gulfstream G500 & G600
8
Sources: Gulfstream, Dassault, Bombardier and Embraer
New FeaturesPratt & Whitney PW800 Turbo Engine
With 16,000 pounds of thrust, the PW800 engine is optimized for high-flying, fast, long-range businessjets. Key features include a high efficiency and low maintenance single-piece fan, the latest full authoritydigital engine control (FADEC) system and lightweight materials, such as titanium and composites, todeliver superior performance. The PW800 engine achieves double-digit improvements in fuel efficiencycompared to the previous generation of engines in the same thrust class. It incorporates an advancedTALON™ X combustor, which sets a new "green" engine standard with respect to future environmentalregulations. Similarly, the engine sets a new industry standard for maintenance, requiring 40% lessscheduled maintenance and 20% fewer inspections than other engines in its class.
Honeywell Avionics
The Gulfstream Flight Deck will be the first to feature Honeywell’s new touch-screen technology. Byutilizing an eight-inch LCD, the touch screen controllers are fully integrated with cockpit and aircraftsystems to provide advanced functionality. The system will feature 2-D and 3-D moving maps. 2-D mapswill show runways, taxiways and airport structures on navigation displays, while the 3-D moving mapintegrates the SmartView Synthetic Vision System for a view of the airport on the Primary Flight Display(PFD). SmartView significantly improves the flight crew’s situational awareness by providing a large, 3-Dcolor image to enhance safety and efficiency.
G500 Specifications
Take-off Field Length 5,200 ft.
Landing Field Length 3,100 ft.
Max Cruise Altitude 51,000 ft.
High-Speed Mach .93
Long-Range Mach .85
Max Take-off Weight 76,850 lbs
Interior 12 panoramic windows, low pressurized cabin, replenished air
Cabin Length 41’ 6”
Cabin Width 7’ 11”
G600 Specifications
Take-off Field Length 5,700 ft.
Landing Field Length 3,100 ft.
Max Cruise Altitude 51,000 ft.
High-Speed Mach .93
Long-Range Mach .85
Max Take-off Weight 91,600 lbs
Interior 14 panoramic windows, broadband data system, 10 individual cabin bays
Cabin Length 45’ 2”
Cabin Width 7’ 11”
Select Business Jet Competitors Specifications
Specifications
Manufacturer Platform Wingspan Length Range Passengers Unit Cost ($M)
Gulfstream G500 87’ 1” 91’ 2” 5,000nm 18 $43.5
Gulfstream G600 95’ 0” 96’ 1” 6,200nm 18 $54.5
Manufacturer Platform Wingspan Length Range Passengers Unit Cost ($M)
Bombardier Global 7000 104’ 10” 111’ 2” 7,300nm 17 $72.4
Embraer Lineage 1000 94’ 3” 118’ 11” 4,600nm 19 $52.5
Dassault Falcon 8x 86’ 3” 80’ 2” 6,450nm 8 $58.0
Source: Company website
Quarterly UpdateQ2 2015
Aerospace & Defense
9
Private Equity SellerPS Private Equity BuyerPBPublic SellerPU Private SellerPR International DealI
Sources: CapIQ, Dacis, company reports, press releases
All Transactions – Value Disclosed
Valuation Metrics
Announced
DateTarget Acquiror
Implied TEV
($M)
TEV/
Revenue
TEV/
EBITDASegment Deal Type(s)
PR PB
PS I
PR I
PU PB
PU I
PU PB
PS I
PR PB I
PU I
PR I
PS
PS
PU
PU I
PU I
PR
PR
PR I8.3x Aircraft Interiors 04/01/15Franke Aquarotter GmbH (nka:Adams
Rite Aerospace GmbH)Adams Rite Aerospace, Inc. $75.0 1.7x
naElectronics Manufacturing
(EMS) & Harnessing
04/09/15 2d3 Inc. Insitu, Inc. $24.8 3.0x na Sensors & C4ISR
04/14/15 Hunter Technology Corporation Sparton Corp. $68.0 0.8x
na Navy/Maritime
04/23/15Aeroflex/Inmet Inc. and Aeroflex /
Weinschel, Inc.API Technologies Corp. $80.0 1.6x na Defense Electronics
04/28/15 Michell Bearings Limited British Engines Limited $19.3 0.9x
10.0x Aircraft Interiors
04/28/15 Welkin Associates, Ltd. ManTech International Corporation $34.0 1.0x naGovernment Services, IT
Services and Software
04/30/15 Pexco LLC, Aerospace Business TransDigm Group Incorporated $336.0 2.2x
05/08/15Global Tubes [Fine Tubes Ltd., Superior
Tube Company, Inc.]Ametek Inc. $200.0 1.7x na Machined & Cast Parts
na
Cybersecurity, Intelligence
Services and Homeland
Defense
05/15/15 Euravia Engineering & Supply Co. Ltd Magellan Aerospace Corp. $47.0 2.2x na MRO & Logistics
05/21/15NICE Systems Ltd., Cyber and
Intelligence DivisionCyberbit Ltd. $157.9 2.0x
naSimulation & Training
Systems
05/26/15StandardAero Business Aviation
Services, LLC
Veritas Capital; Veritas Capital Fund
V, L.P.$2,275.0 1.3x 11.9x MRO & Logistics
05/28/15CTC Aviation Group Ltd. (nka:L-3 CTC
Ltd.)L-3 Communications Holdings Inc. $218.5 2.5x
12.0xElectronics Manufacturing
(EMS) & Harnessing
06/01/15 JPS Industries, Inc. Handy & Harman Group Ltd. $110.7 0.7x na Composites
06/01/15Kratos Defense & Security Solutions,
Inc., Electronic Products DivisionUltra Electronics Defense, Inc. $265.0 1.2x
9.0xGovernment Services, IT
Services and Software
06/01/15 OM Group Inc.Apollo Global Management, LLC;
Apollo Investment Fund VIII, L.P.$1,037.0 1.0x 12.0x Defense Electronics
06/09/15 STG, IncorporatedGlobal Defense & National Security
Systems, Inc.$165.5 0.8x
na Components & Subsystems
06/29/15 Protonex Technology Corporation Ballard Power Systems Inc. $26.0 2.0x na Defense Electronics
06/30/15 Firstmark CorporationH-D Advanced Manufacturing
Company$51.6 na
Quarterly UpdateQ2 2015
Aerospace & Defense
Private Equity SellerPS Private Equity BuyerPBPublic SellerPU Private SellerPR International DealI
Sources: CapIQ, Dacis, company reports, press releases
All Transactions – Value Disclosed (continued)
10
Valuation Metrics
Announced
DateTarget Acquiror
Implied TEV
($M)
TEV/
Revenue
TEV/
EBITDASegment Deal Type(s)
PR04/01/15 Hartzell Aerospace Group ITT Corporation $53.1 1.6x na Composites
Quarterly UpdateQ2 2015
Aerospace & Defense
Private Equity SellerPS Private Equity BuyerPBPublic SellerPU Private SellerPR International DealI
Sources: CapIQ, Dacis, company reports, press releases
All Transactions – Value Not Disclosed
11
Announced Date Target Acquiror Segment Deal Type(s)
PU PB
PR PB I
PU I
PU I
PR PB
PS I
PR PB
PU I
PR I
PR PB
PR I
PR PB
PR
PR PB
PR PB
PR PB
PR
PS PB
Aequs Aerospace Private Limited Machined & Cast Parts
06/17/15 EMC Aerospace, Inc. Velocity Aerospace Group, Inc.
Specialty Defense Systems and
Services
06/11/15 American Fuel Cell And Coated Fabrics Company Anonymous US Investor Composites
06/14/15 Colt Defense LLC Sciens Capital Management, LLC
MRO & Logistics
06/15/15 Aequs Aero Machine, Inc.
MRO & Logistics
06/22/15 Safe Air Limited Airbus Group Australia Pacific Limited MRO & Logistics
06/22/15 Discovery Air Technical Services Inc. Premier Aviation Overhaul Center, Inc.
Machined & Cast Parts
06/24/15 Accord Technology LLC Aspen Avionics, Inc. Sensors & C4ISR
06/30/15 M&M Manufacturing Company, Inc. Rift Valley Equity Partners LLC
Engines & Engine Systems
06/09/15 MacLean Sky L.L.C. Novaria Group Inc. Components & Subsystems
06/11/15
Sensors & C4ISR
Specialty Defense Systems and
Services
06/05/15 CRW Systems, Inc. SunGard Public Sector Inc.Government Services, IT Services and
Software
06/08/15 BLS Textiles, Inc. DEW Engineering and Development ULC
Sheets Manufacturing Inc. GKN plc
05/22/15 CyPhy Works Draper Nexus Unmanned Vehicles
06/03/15 Cuming Microwave Corporation PPG Industries, Inc.
Cybersecurity, Intelligence Services
and Homeland Defense
05/11/15 Precision Aero Corporation H-D Advanced Manufacturing Company Machined & Cast Parts
05/12/15 Resolution1 Security, Inc.General Dynamics Fidelis Cybersecurity
Solutions Inc.
Simulation & Training Systems
05/08/15 Compusearch Software Systems, Inc. ABRY Partners, LLCGovernment Services, IT Services and
Software
05/08/15 AeroGroup Incorporated AGD Systems Inc.
Quarterly UpdateQ2 2015
Aerospace & Defense
Private Equity SellerPS Private Equity BuyerPBPublic SellerPU Private SellerPR International DealI
Sources: CapIQ, Dacis, company reports, press releases
All Transactions – Value Not Disclosed (continued)
12
Announced Date Target Acquiror Segment Deal Type(s)
PS PB
PR
PR PB
PR
PR PB I
PR PB I
PR
PR
PR
PR PB
PS I
PR
PS PB
PR
PS I
PR
PR
PS PB
Simulation & Training Systems
05/07/15 MLB Company, LLC Martin UAV, LLC Unmanned Vehicles
05/07/15 A-T Solutions, Inc. Pacific Architects and Engineers Incorporated
Components & Subsystems
05/05/15 Creative Computing Solutions, Inc. Information Innovators Inc.Government Services, IT Services and
Software
05/05/15 FMH Aerospace Corp.Industrial Growth Partners; Industrial Growth
Partners IV, LP
Government Services, IT Services and
Software
05/01/15 Ocean Signal Ltd ACR Electronics, Inc. Navy/Maritime
05/04/15 Aero Transport Engineering Consulting S.A. Seabury Enterprise Solutions LLC
Government Services, IT Services and
Software
05/01/15 Vaxcom Services, Inc. Xator CorporationCybersecurity, Intelligence Services
and Homeland Defense
05/01/15Sage Management Enterprise, LLC and Vaxcom
Services Inc.Xator Corporation
Machined & Cast Parts
04/28/15 Linxx Global Solutions, Inc. Mosaic Capital Partners, LLCGovernment Services, IT Services and
Software
04/29/15 Acquire Alu-Forge, Inc. (dba American Handforge) PCC Forged Products
Simulation & Training Systems
04/28/15 Colonial Assembly & Design, LLC Zentech Manufacturing, Inc.Electronics Manufacturing (EMS) &
Harnessing
04/28/15 Quantum3D, Inc. HAVELSAN, Inc.
MRO & Logistics
04/23/15 Kutta Technologies, Inc. Sierra Nevada Corporation Sensors & C4ISR
04/27/15 Royal Adhesives & Sealants, LLCAmerican Securities; American Securities
Partners VI, L.P.
Defense Electronics
04/21/15 Lafayette Aviation, Inc. Purdue Research Foundation, Endowment Arm MRO & Logistics
04/22/15 Invotec Group Limited (nka:Amphenol Invotec) Amphenol Corporation
Engineering and Project Management
04/20/15 Total Military Management, Inc. Sentinel Capital Partners, L.L.C. MRO & Logistics
04/20/15 Tri Star Engineering G/Force, Inc.
Quarterly UpdateQ2 2015
Aerospace & Defense
Private Equity SellerPS Private Equity BuyerPBPublic SellerPU Private SellerPR International DealI
Sources: CapIQ, Dacis, company reports, press releases
All Transactions – Value Not Disclosed (continued)
13
Announced Date Target Acquiror Segment Deal Type(s)
PR
PS PB
PS PB
PU PB
PR PB I
PR
PR
PR PB
PR PB
PR
PR
PR
04/15/15 Eclipse Aerospace, Inc. ONE Aviation Corporation Aerostructures
04/14/15 Kellstrom Materials AE Industrial Partners, LLC Distribution
04/14/15 Alliance Spacesystems, LLC Solaero Technologies Corp. Composites
04/14/15General Dynamics Fidelis Cybersecurity Solutions
Inc.Marlin Equity Partners, LLC
Cybersecurity, Intelligence Services
and Homeland Defense
04/13/15 Aerospheres (UK) Ltd. AGC Aerospace & Defense MRO & Logistics
04/13/15 Riotech Inc. IXI Technology Defense Electronics
04/10/15 Information Security Solutions LLC Assured Information Security, Inc.Cybersecurity, Intelligence Services
and Homeland Defense
04/08/15 ERA FBO, LLC Piedmont Aviation Component Services, LLC MRO & Logistics
04/06/15 PHS/MWA, LLC Soundair, Inc. MRO & Logistics
04/06/15 Luchner Tool Engineering Aerospace Precision, Inc. Machined & Cast Parts
04/03/15 Vero Beach Avionics, Inc. Sun Aviation, Inc. MRO & Logistics
04/01/15 LTC Engineering Associates, Inc. CACI International Inc. Engineering and Project Management
Quarterly UpdateQ2 2015
Aerospace & Defense
14
Contact Information
Stephen Perry Managing DirectorOffice: (949) 769-3323 Ext. 302Direct: (949) [email protected]
David JanesChairman & CEOOffice: (949) 769-3323 Ext. [email protected]
Ilana GermaineVice PresidentOffice: (949) 769-3323 Ext. 308Direct: (910) [email protected]
19200 Von Karman Avenue, Suite 340, Irvine, California 92612T: (949) 769-3323 F: (949) 769-3327 www.janescapital.com
Janes Capital Partners gathers its data from sources it considers reliable; however, it does not guarantee the accuracy orcompleteness of the information provided within this publication. The material presented reflects information known tothe authors at the time this presentation was prepared, and this information is subject to change. Janes Capital Partnersmakes no representations or warranties, expressed or implied, regarding the accuracy of this material.
Securities offered through JCP Securities, Inc., a Registered Broker/Dealer and Registered Investment Advisor; MemberFINRA and SIPC. Janes Capital Partners, Inc. and JCP securities, Inc. are affiliated companies.
No portion of this report may be reproduced in any form without the express written permission of Janes CapitalPartners. Janes Capital Partners is a federally registered U.S. trademark.
Copyright 2015, Janes Capital Partners, Inc. All rights reserved.
Janes Capital Partners specializes in Mergers & Acquisitions (M&A) for middle marketAerospace & Defense companies. Our clients are Aerospace & Defense companies withenterprise values between $25 million and $500 million. The team at Janes Capital Partnershas completed over 50 transactions within the Aerospace & Defense industry. Through thisM&A experience, we provide our clients with unparalleled access to potential acquirers in theaerospace and defense industry along with in-depth knowledge of the industry and itsdynamics. Our clients receive high touch service from accomplished professionals withextensive A&D transaction and industry experience.
Janes Capital Partners is a member firm of M&A International Inc., a global alliance of mid-market investment banks. Established in 1985, the alliance includes over 600 M&Aprofessionals, with 46 member firms in 40 countries around the globe. The alliance has closedover 1,300 transactions totaling more than $75 billion in transaction value in the past fiveyears. Janes Capital Partners serves as M&A International’s Global Aerospace & DefenseIndustry Group Practice Leader.
Select Transactions
About Janes Capital Partners
Acted as Financial Advisor to
Prime contractor, developer and manufacturer of high
performance, advanced aerial targets and UAV platforms, in its
sale to
Acted as Financial Advisor to
Developer and manufacturer of liquid propulsion systems and
components; on its sale to
Acted as Financial Advisor to
High-speed, precision, machining manufacturer of large structural components for the aerospace
industry; on its sale to
Acted as Financial Advisor to
Distributor and supplier of aviation components to
commercial airline, MRO and general aviation end-users; on its
merger with
Acted as Financial Advisor to
Manufacturer of high-precision components and sub-assemblies for the aerospace and defense industry
recapitalization of
Acted as Financial Advisor to
Leading designer and manufacturer of oxygen systems and related components for business jet,
commercial and military aircraft;
on its sale to
Jason KimballAssociateOffice: (949) 769-3323 Ext. 315Direct: (949) [email protected]
