Mergers and Acquisitions - Scott-Macon, Ltd. · 2020. 3. 18. · SM Aerospace SM Government...

2© Copyright 2018 SCOTT-MACON, LTD.

We are pleased to present you with the April 2019 Edition of the

Scott-Macon Aerospace, Defense and Government Services

monthly newsletter! Our team strives to provide industry

professionals such as yourself with the critical market information

necessary to execute your strategic goals and initiatives. Please

let us know if you would like to discuss any of the emerging

trends presented in this review and how they can potentially

impact your firm.

Our team can help you with the following services:

Mergers and Acquisitions

- Sale of company

- Acquisition of target companies

Private Debt and Equity Financing

Dividend Recapitalization

We look forward to speaking to you soon!

Best,

Michael

Michael N. PapazisManaging Director

Aerospace, Defense & Government Services

Office: (212) 755-8200

Fax: (212) 583-9262

[email protected]

A note from SCOTT-MACON

Table of ContentsSection 1 Market Snapshot

Review of key valuation and deal trends analyzed on an Monthly and Last Twelve Month (LTM) basis

4

Section 2 Public Trading ComparablesList of operating metrics and valuation multiples for public companies in selected sub-segments of the Aerospace, Defense & Government Services (ADG) sectors

6

Section 3 M&A TransactionsList of relevant transactions with disclosed values which occurred in the last month segmented by Aerospace, Defense or Government Services

9

Section 4 Recent ContractsList of selected major government contracts that have been awarded in the last month

17

Section 5 Key Aerospace & Defense StatsReview of key trends in the aerospace and defense sectors

21

Section 6 About Scott-MaconBrief overview on Scott-Macon and their ADG investment banking practice

24

SECTION 1: MARKET SNAPSHOT


# 1.0 %

# 3.9 %

# 3.5 %

$ -4.5 %

$ -5.8 %

$ -6.7 %


Market Snapshot

Share Price Performance

Trading Valuation (TEV / LTM EBITDA)

M&A TransactionsM&A Transactions

Trading Valuation (TEV / LTM EBITDA)

Share Price Performance

Monthly as of April 2019 LTM as of April 2019

2719

19

18

10

10

56

47

0

10

20

30

40

50

60

70

30-Apr-18 30-Apr-19

Nu

mb

er o

f D

eals

Aerospace Defense Government Services

$ 0.0 %

$ -5.3 %

$ -29.6 %

260 251

291 296

108 98

659 645

0

100

200

300

400

500

600

700

800

LTM-Apr-18 LTM-Apr-19

Nu

mb

er o

f D

eals

Aerospace Defense Government Services

$ -9.3 %

# 1.7 %

$ -3.5 %

11.00x

11.20x

11.40x

11.60x

11.80x

12.00x

12.20x

12.40x

12.60x

12.80x

13.00x

Ma

r-0

1-2

019

Ma

r-0

3-2

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r-0

7-2

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9-2

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9-2

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r-2

7-2

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r-2

9-2

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Ma

r-3

1-2

019

SM Aerospace SM Government Services SM Defense

8.50x

9.50x

10.50x

11.50x

12.50x

13.50x

14.50x

Apr

-29

-20

18

Ma

y-20

-201

8

Jun

-10-

201

8

Jul-

01-2

018

Jul-

22-2

018

Aug

-12

-20

18

Sep

-02

-20

18

Sep

-23

-20

18

Oct

-14

-20

18

No

v-04

-20

18

No

v-25

-20

18

De

c-16

-20

18

Jan

-06-

201

9

Jan

-27-

201

9

Feb

-17-

201

9

Ma

r-1

0-2

019

Ma

r-3

1-2

019

Apr

-21

-20

19

SM Aerospace SM Government Services SM Defense

74

79

84

89

94

99

104

109

114

119

124

Apr

-30

-20

18

Ma

y-21

-201

8

Jun

-11-

201

8

Jul-

02-2

018

Jul-

23-2

018

Aug

-13

-20

18

Sep

-03

-20

18

Sep

-24

-20

18

Oct

-15

-20

18

No

v-05

-20

18

No

v-26

-20

18

De

c-17

-20

18

Jan

-07-

201

9

Jan

-28-

201

9

Feb

-18-

201

9

Ma

r-1

1-2

019

Apr

-01

-20

19

Apr

-22

-20

19

S&P 500 SM Aerospace

SM Government Services SM Defense

# 7.6 %

# 13.2 %

# 12.6 %

# 12.6 %

85

90

95

100

105

110

115

120

125

Apr

-01

-20

19

Apr

-02

-20

19

Apr

-03

-20

19

Apr

-04

-20

19

Apr

-05

-20

19

Apr

-06

-20

19

Apr

-07

-20

19

Apr

-08

-20

19

Apr

-09

-20

19

Apr

-10

-20

19

Apr

-11

-20

19

Apr

-12

-20

19

Apr

-13

-20

19

Apr

-14

-20

19

Apr

-15

-20

19

Apr

-16

-20

19

Apr

-17

-20

19

Apr

-18

-20

19

Apr

-19

-20

19

Apr

-20

-20

19

Apr

-21

-20

19

Apr

-22

-20

19

S&P 500 SM Aerospace

SM Government Services SM Defense

# 3.2 %

# 10.4 %

# 4.6 %

# 7.3 %

SECTION 2: PUBLIC COMPARABLES



Public Comparables

Aerospace Public Comparables

Government Services Public Comparables

% of 52 Market Total Enterprise TEV / % Change TEV / LTM EBITDA TEV / % Change TEV / LTM Rev. Enterprise Value / EBITDA

Aerospace OEMs Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

Airbus SE $136.56 98.3% $105,934.0 $107,741.3 15.6 x 3.3% 27.4% 1.5 x 5.4% 26.1%

Boeing Company 377.69 84.7 212,499.9 220,685.9 16.4 3.8 1.9 2.2 0.5 5.5

Bombardier Inc. 1.70 41.0 4,075.1 11,793.3 10.5 -3.9 -21.6 0.7 -3.9 -28.1

Embraer S.A. 4.98 70.1 3,664.5 4,705.6 18.5 5.0 -28.6 1.0 5.0 -12.7

Median 77.4% $55,004.5 $59,767.3 16.0 x 3.5% -23.7% 1.2 x 5.2% 6.3%

Mean 73.5% $81,543.4 $86,231.5 15.2 x 2.6% -27.4% 1.3 x 1.9% 1.7%


Aerospace Systems / Equipment Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

AAR Corp. $33.77 65.5% $1,161.1 $1,309.4 9.1 x 3.4% -22.3% 0.7 x 3.4 -22.6%

AMETEK, Inc. 88.17 100.2 20,060.3 22,339.1 17.2 5.6 16.6 4.6 5.6 12.1

Astronics Corporation 33.34 82.3 1,088.3 1,305.6 13.5 1.9 -6.6 1.6 1.9 -20.8

CAE Inc. 23.18 98.3 6,144.6 6,937.2 16.6 4.6 15.4 3.1 4.6 18.3

Crane Co. 85.05 84.9 5,093.0 5,839.5 10.1 2.9 9.3 1.7 2.9 -11.8

HEICO Corporation 105.53 99.3 12,750.4 13,552.4 NM 7.9 19.1 7.4 7.9 28.2

Héroux-Devtek Inc. 11.31 90.7 411.2 604.6 13.0 -3.0 38.2 1.9 -3.0 23.4

Meggitt PLC 7.09 93.3 5,469.9 6,869.1 13.5 6.5 18.4 2.5 6.5 11.1

Moog Inc. 93.64 95.0 3,269.5 3,982.9 11.4 7.8 5.4 1.4 5.5 3.2

MTU Aero Engines AG 234.96 99.2 12,131.9 13,265.0 14.9 1.8 7.2 2.5 1.0 52.4

Textron Inc. 53.00 72.7 12,336.4 15,880.4 10.1 9.0 0.8 1.2 9.9 -13.3

TransDigm Group Incorporated 482.52 99.5 25,523.9 36,084.5 19.0 4.4 9.7 9.1 4.4 16.8

Woodward, Inc. 108.90 103.5 6,760.8 7,856.0 17.1 12.1 16.5 3.1 12.1 37.4

Median 95.0% $6,144.6 $6,937.2 13.5 x 1.4% -3.2% 2.5 x 6.2% 22.7%

Mean 91.1% $8,630.9 $10,448.1 13.8 x 4.7% 1.9% 3.1 x 5.3% 12.9%

% of 52 Market Total Enterprise TEV / % Change TEV / LTM EBITDA TEV / % Change TEV / LTM Rev. Enterprise Value / EBITDA as OF

Aerospace Structures Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

CPI Aerostructures, Inc. $6.33 53.9% $74.3 $100.5 10.8 x -14.8% -6.3% 1.2 x -10.2% -15.5%

Ducommun Incorporated 40.58 85.8 463.7 682.7 10.6 -4.7 -7.0 1.1 -4.7 11.4

RBC Bearings Incorporated 137.55 81.0 3,296.8 3,329.7 18.3 8.1 -7.1 4.8 8.1 7.4

Hexcel Corporation 70.71 96.3 6,002.4 7,190.2 13.6 -0.2 1.9 3.2 2.6 -3.9

Kaman Corporation 61.91 82.5 1,724.9 2,000.1 12.3 5.1 0.5 1.1 5.1 -6.3

Latécoère S.A. 3.65 58.8 345.8 403.4 8.5 70.7 NA 0.5 3.4 -33.4

Magellan Aerospace Corporation 13.95 96.3 812.1 823.0 7.6 5.5 13.6 1.1 5.5 -5.5

Senior plc 3.02 68.9 1,255.2 1,454.5 8.9 5.3 3.7 1.0 5.3 -24.0

Spirit AeroSystems Holdings, Inc. 86.90 86.6 9,182.8 10,305.1 9.3 -4.5 1.1 1.4 -4.5 0.2

Triumph Group, Inc. 23.73 91.3 1,183.4 2,788.4 NM 9.1 62.3 0.8 9.1 6.6

Median 84.1% $1,219.3 $1,727.3 10.6 x -4.7% -11.1% 1.1 x 0.3% 2.9%

Mean 80.1% $2,434.1 $2,907.8 11.1 x 3.6% -25.6% 1.6 x 2.7% -0.5%

Total Aerospace Median 86.6% $4,075.1 $5,839.5 13.0 x 2.5% -2.6% 1.5 x -2.7% 2.7%

Total Aerospace Mean 84.4% $17,137.6 $18,882.6 13.0 x 4.0% -11.1% 2.3 x 4.3% 8.1%


Government Services Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

Booz Allen Hamilton Holding Corp. $59.29 100.2% $8,305.4 $9,867.8 14.8 x 1.7% 10.9% 1.5 x 1.7% 26.2%

CACI International Inc 194.94 97.1 4,846.7 5,831.2 12.8 5.8 13.3 1.3 5.8 14.7

CGI Inc. 71.75 99.8 19,606.0 20,973.1 14.4 4.7 10.1 2.4 4.7 15.1

Cyient Limited 8.44 66.3 928.1 770.5 8.9 -17.9 -13.7 1.2 -11.9 -38.5

ICF International, Inc. 77.87 94.7 1,468.8 1,657.5 13.7 2.3 4.1 1.2 2.3 4.6

KeyW Holding Corp. 11.34 99.9 563.9 818.7 20.0 19.9 37.1 1.6 19.9 13.3

Leidos Holdings, Inc. 73.48 101.6 10,553.8 13,357.8 12.7 10.9 17.1 1.3 10.9 6.8

ManTech International Corp. 61.99 91.0 2,470.6 2,472.8 15.0 15.0 8.3 1.3 15.0 -8.0

MAXIMUS, Inc. 73.65 99.8 4,698.7 4,772.2 13.7 3.7 17.1 2.0 3.7 14.3

Navigant Consulting, Inc. 22.83 83.3 898.3 901.2 14.3 39.0 NA 1.3 48.3 11.6

QinetiQ Group plc 3.93 95.6 2,198.8 1,872.1 9.9 0.1 -0.6 1.7 0.1 23.8

Science Applications International Corp. 74.95 80.3 4,434.5 6,324.5 17.8 -1.9 27.2 1.4 -1.9 34.2

Serco Group plc 1.62 90.1 1,799.4 2,051.1 11.5 11.9 -27.9 0.6 -1.0 33.3

Vectrus, Inc. 40.55 99.1 456.9 464.2 8.5 51.2 38.5 0.4 51.2 0.2

VSE Corp. 30.57 57.5 334.7 515.5 6.6 -1.8 -6.7 0.7 -1.8 -26.1

Median 95.6% $2,198.8 $2,051.1 13.7 x 13.6% 17.1% 1.3 x 6.7% 12.7%

Mean 90.4% $4,237.6 $4,843.3 13.0 x 8.1% 13.1% 1.3 x 6.5% 13.4%


Engineering & Construction Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

AECOM $33.90 94.8% $5,291.6 $8,546.2 10.2 x 8.4% 11.8 0.4 x 8.4% -10.2%

Fluor Corp. 39.73 65.6 5,546.6 5,410.4 7.2 8.2 7.3 0.3 8.2 -31.6

Jacobs Engineering Group Inc. 77.94 94.8 10,873.9 12,747.3 13.3 3.1 9.0 0.8 3.1 -18.8

KBR, Inc. 22.22 97.5 3,143.0 3,699.0 8.5 13.9 2.2 0.8 13.9 20.7

Tetra Tech, Inc. 64.72 89.2 3,573.4 3,770.0 15.6 8.1 15.3 1.7 8.1 19.7

Median 94.8% $5,291.6 $5,410.4 10.2 x 8.4% 11.8% 0.8 x 13.9% 12.1%

Mean 88.4% $5,685.7 $6,834.6 11.0 x 7.8% 9.9% 0.8 x 8.2% 12.8%

Total Government Services Median 94.8% $3,358.2 $3,734.5 13.0 x 10.7% 13.3% 1.3 x 17.3% 13.3%

Total Government Services Mean 89.9% $4,599.7 $5,341.2 12.5 x 8.1% 12.4% 1.2 x 6.8% 13.3%



Public Comparables (Continued)

Defense Public Comparables


Defense Primes Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

BAE Systems plc $6.44 72.6% $20,592.3 $21,988.7 8.7 x 2.3% -7.2% 1.0 x 2.3% -9.9%

Boeing Company 377.69 84.7 212,499.9 220,685.9 16.4 3.8 1.9 2.2 x 0.5 5.5

General Dynamics Corporation 178.72 85.6 51,627.2 65,886.2 12.2 6.5 5.9 1.7 4.2 -12.9

Leonardo S.p.a. 11.54 93.8 6,630.8 9,513.8 5.2 -0.4 -18.5 0.7 -0.4 -3.9

Lockheed Martin Corporation 333.33 94.9 94,178.7 107,165.7 11.9 2.2 8.2 1.9 3.8 -5.6

Northrop Grumman Corporation 289.91 85.2 49,226.6 64,955.6 12.6 7.4 5.6 2.1 5.4 -11.9

Raytheon Company 177.59 82.7 49,702.3 53,749.3 13.7 -2.5 8.6 2.0 -0.8 -18.9

Thales S.A. 119.27 85.5 25,344.7 22,071.9 9.7 -0.7 10.2 1.2 -0.3 0.3

Median 85.4% $49,464.5 $59,352.5 12.1 x 4.3% 7.0% 1.8 x 4.0% 5.5%

Mean 85.6% $63,725.3 $70,752.1 11.3 x 2.5% 3.0% 1.6 x 2.1% 3.3%


Defense Systems Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

Aerojet Rocketdyne Holdings, Inc. $33.86 82.6% $2,663.7 $2,553.8 10.5 x -4.9% -7.1% 1.3 x -4.9% 16.4%

AeroVironment, Inc. $68.56 56.5% $1,618.0 $1,323.8 NM 0.3% -23.6% 3.9 x 0.3% 12.1

Cobham plc 1.50 85.5 3,577.1 3,565.7 10.7 4.5 3.3 1.5 4.5 -3.4

Cubic Corporation 56.78 73.4 1,768.7 1,997.5 NM NM NM 1.6 0.8 23.2

Curtiss-Wright Corporation 113.94 80.6 4,879.5 5,366.0 10.9 0.5 -4.3 2.2 0.5 -15.8

FLIR Systems, Inc. 52.94 82.9 7,179.4 7,664.3 18.2 16.2 12.7 4.3 20.1 6.5

Huntington Ingalls Industries, Inc. 222.58 84.9 9,272.0 10,315.0 8.5 6.6 2.7 1.3 6.6 -18.1

Kongsberg Gruppen ASA 14.46 61.3 2,590.1 1,932.1 12.6 -1.8 -20.3 1.2 -6.5 -29.7

L3 Technologies, Inc. 218.58 97.7 17,336.7 19,699.7 14.7 5.2 10.8 1.9 5.2 1.8

Safran SA 145.55 100.0 62,936.8 67,442.1 17.2 4.2 8.4 2.8 4.2 18.5

Textron Inc. 53.00 72.7 12,336.4 15,880.4 10.1 9.0 0.8 1.2 9.9 -13.3

Median 82.6% $4,879.5 $5,366.0 10.9 x -1.6% -4.3% 1.6 x 0.8% -8.8%

Mean 79.8% $11,468.9 $12,521.8 12.6 x 4.7% 0.9% 2.1 x 4.8% -3.6%


Defense Electronics / Equipment Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

AMETEK, Inc. $88.17 100.2% $20,060.3 $22,339.1 17.2 x 5.6% 16.6% 4.6 x 5.6% 12.1%

Chemring Group PLC 2.01 64.3 561.7 668.3 NM 9.0 NA 1.7 9.0 42.0

Comtech Telecommunications Corp. 23.53 63.7 567.7 698.0 8.5 1.1 -12.1 1.1 1.1 -34.0

Crane Co. 85.05 84.9 5,093.0 5,839.5 10.1 2.9 9.3 1.7 2.9 -11.8

Ducommun Incorporated 40.58 85.8 463.7 682.7 10.6 -4.7 -7.0 1.1 -4.7 11.4

Elbit Systems Ltd. 138.99 95.5 5,942.3 6,555.1 15.0 6.0 15.9 1.7 6.0 7.2

Harris Corporation 168.50 96.0 19,854.3 23,330.3 15.4 4.6 8.4 3.6 4.6 -1.9

Héroux-Devtek Inc. 11.31 90.7 411.2 604.6 13.0 -3.0 38.2 1.9 -3.0 23.4

Kratos Defense & Security Solutions, Inc. 15.88 88.9 1,681.3 1,792.8 NM 3.2 16.4 2.9 3.2 NM

Meggitt PLC 7.09 93.3 5,469.9 6,869.1 13.5 6.5 18.4 2.5 6.5 11.1

Mercury Systems, Inc. 73.02 98.3 3,538.5 3,684.6 NM 13.3 23.5 6.4 13.3 72.8

Moog Inc. 93.64 95.0 3,269.5 3,982.9 11.4 7.8 5.4 1.4 5.5 3.2

OSI Systems, Inc. 90.13 98.8 1,628.8 1,937.1 13.0 2.4 0.4 1.7 2.4 26.2

Teledyne Technologies Incorporated 248.51 95.2 9,005.1 9,899.3 17.8 6.4 10.6 3.4 5.9 13.7

Ultra Electronics Holdings plc 20.74 90.3 1,464.1 1,669.2 11.1 -1.0 30.9 1.7 -1.0 15.3

Viasat, Inc. 90.82 100.4 5,492.9 6,613.6 NM 13.9 -0.6 3.4 13.9 15.1

Woodward, Inc. 108.90 103.5 6,760.8 7,856.0 17.1 12.1 16.5 3.1 12.1 37.4

Median 95.0% $3,538.5 $3,982.9 13.0 x -0.1% 14.5% 1.9 x -3.0% 7.5%

Mean 90.9% $5,368.5 $6,177.8 13.3 x -11.7% 11.9% 2.6 x 6.4% 13.4%


Homeland Security Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

Elbit Systems Ltd. 138.99 95.5 5,942.3 6,555.1 15.0 6.0 15.9 1.7 6.0 7.2

MSA Safety Incorporated 109.91 99.2 4,252.3 4,509.7 16.1 7.0 10.1 3.3 8.4 13.4

OSI Systems, Inc. 90.13 98.8 1,628.8 1,937.1 13.0 2.4 0.4 1.7 2.4 26.2

American Outdoor Brands Corporation 9.85 61.8 537.4 727.7 7.1 4.0 -16.9 1.1 4.0 -4.2

Smiths Group plc 19.83 84.1 7,852.7 9,096.7 12.2 5.2 10.0 2.2 5.2 -5.3

Median 95.5% $4,252.3 $4,509.7 13.0 x 2.4% 0.7% 1.7 x 2.4% 0.4%

Mean 87.9% $4,042.7 $4,565.3 12.7 x 5.1% 5.4% 2.0 x 5.7% 3.0%

Total Defense Median 85.8% $5,492.9 $6,555.1 12.6 x 3.2% 10.6% 1.7 x 2.9% 1.4%

Total Defense Mean 86.5% $18,230.2 $20,283.1 12.6 x -3.2% 6.1% 2.2 x 5.3% 5.9%

SECTION 3: M&A TRANSACTIONS



M&A Transactions with Disclosed Values - LTM as of April 2019

Continued on Next Page

xx xx xx xxx EV / LTM

Announced Closed Buyer Target Target Sector EV Rev EBITDA

4/22/2019 Pending Jacobs Engineering Group Inc. The KeyW Holding Corporation Government

Services

$856 1.7 x 20.9 x

4/15/2019 4/15/2019 CalAmp Corp. Synovia Solutions, LLC Defense $50 NA NA

4/12/2019 Pending Lakaikorea Hancom Unimax INC. Defense $47 NA NA

4/10/2019 Pending Grupo Amper SA Wireless Watts S.L./Signal Intelligence Consultancy

S.L.

Defense $9 NA NA

4/8/2019 Pending Graph Blockchain Inc. BlockChain Innovations Corp. Government

Services

$7 NA NA

4/5/2019 Pending Elbit Systems of America, LLC Night Vision business of Harris Corporation Defense $350 NA NA

4/4/2019 Pending Hainan Airlines Holding Co.,Ltd. Hainan Tianyu Flight Training Co., Ltd. Aerospace $104 NA NA

4/3/2019 4/3/2019 Snap-on Incorporated Power Hawk Technologies, Inc. Defense $8 NA NA

4/3/2019 Pending Hainan Airlines Holding Co.,Ltd. HNA Aviation Technic Co.,Ltd. Aerospace $818 1.5 x NA

3/28/2019 Pending ZF Friedrichshafen AG WABCO Holdings Inc. Aerospace $7,342 1.9 x 12.0 x

3/27/2019 Pending Cathay Pacific Airways Limited Hong Kong Express Airways Ltd. Aerospace $628 NA NA

3/27/2019 Pending Singapore Technologies Engineering Newtec Cy NV Defense $281 2.7 x 14.6 x

3/26/2019 Pending Beijing Aerospace Changfeng Co., Ltd Aerospace Changfeng Chaoyang Power Supply

Co., Ltd.

Aerospace $226 NA NA

3/26/2019 Pending Shanghai KangDa New Materials Co.,

Ltd.

Beijing Aerospace Hengrong Electromagnetic

Technology Co., Ltd.

Defense $7 0.0 x 0.1 x

3/22/2019 3/22/2019 Cobepa S.A. Scalian SAS Defense $226 0.9 x NA

3/19/2019 Pending Apax Partners LLP Inmarsat Plc Aerospace $5,533 3.8 x 7.6 x

3/18/2019 3/18/2019 Curtiss-Wright Corporation Tactical Communications Group, LLC Defense $50 3.3 x NA

3/12/2019 Pending Mivtach Shamir Holdings Ltd Danya Cebus Ltd Government

Services

$144 1.8 x 18.0 x

3/11/2019 3/11/2019 Times Publishing Limited Print Lab Pte Ltd Government

Services

$30 NA NA

3/11/2019 Pending Azul S.A. Selected Assets of Avianca Brasil Aerospace $105 NA NA

3/7/2019 4/9/2019 Shenzhen Sunshine Laser &

Electronics Technology Co., Ltd.

Chengdu Tongyu Aviation Equipment Manufacturing

Co., Ltd.

Aerospace $55 10.9 x NA

3/1/2019 3/1/2019 Vesuvius plc CCPI Inc. Aerospace $43 1.2 x 8.0 x

2/18/2019 Pending Kordsa, Incorporated Axiom Materials, Inc. Defense $182 NA NA



M&A Transactions with Disclosed Values - LTM as of April 2019 (Continued)




2/18/2019 3/4/2019 Magnetic MRO AS Direct Maintenance Holding B.V. Aerospace $9 1.1 x NA

2/13/2019 Pending King-Strong New Material Technology

Co., Ltd.

Guangdong Kuanpu Technology Co., Ltd. Defense $97 5.4 x NA

2/12/2019 2/12/2019 Advanced Technology Ventures

Limited

Graticules Limited Defense $4 1.8 x NA

2/11/2019 2/11/2019 FLIR Detection, Inc. Endeavor Robotics Defense $382 4.8 x 47.8 x

2/1/2019 2/1/2019 Ansell Limited Ringers Gloves, Inc. Defense $70 2.1 x NA

2/1/2019 2/1/2019 Fondi Italiani per le Infrastrutture SGR

SpA

Aeroporto Friuli Venezia Giulia SpA Aerospace $68 NA NA

1/30/2019 3/1/2019 CACI, Inc. - Federal LGS Innovations LLC and Mastodon Design LLC* Government

Services

$975 2.0 x 11.9 x

1/29/2019 2/7/2019 Pennant International Group plc Aviation Skills Partnership Limited Aerospace $9 NA NA

1/29/2019 1/29/2019 Mercury Systems, Inc. GECO Inc. Aerospace $37 NA 10.4 x

1/28/2019 1/28/2019 ECS Federal, LLC DHA Group Inc. Government

Services

$46 0.9 x NA

1/28/2019 1/28/2019 FLIR Systems, Inc. Aeryon Labs Inc. Defense $200 NA NA

1/22/2019 2/25/2019 John Bean Technologies Corporation LEKTRO, Inc. Defense $48 NA NA

1/18/2019 2/25/2019 Huntington Ingalls Industries, Inc. Fulcrum IT Services, LLC Defense $193 NA NA

1/16/2019 1/16/2019 Nistec Golan Ltd. Eltek Ltd. Defense $20 0.6 x NA

1/15/2019 1/15/2019 GREEN4T Solucoes Ti LTDA. Aceco TI S.A. Government

Services

$63 1.5 x 16.8 x

1/14/2019 1/14/2019 Caisse D'epargne Île De France,

Investment Arm

Trialog SAS Defense $5,000 1.7 x 12.5 x

1/13/2019 Pending Rafael Advanced Defense Systems

Ltd.

Aeronautics Ltd. Defense $237 2.4 x NA

1/11/2019 3/11/2019 Connect Airways Limited Flybe Group PLC Aerospace $129 NA 2.5 x

1/11/2019 2/22/2019 Connect Airways Limited Comhfhorbairt Aerospace $13 NA NA

1/11/2019 Pending MCS Solutions Axxerion B.V. Government

Services

$86 NA NA

1/10/2019 1/10/2019 VSE Aviation, Inc 1st Choice Aerospace Inc. Aerospace $152 NA NA

1/8/2019 2/28/2019 Comtech Telecommunications Corp. Solacom Technologies, Inc. Defense $33 NA NA

1/8/2019 1/8/2019 Paya, Inc. First Billing Services, LLC Government

Services

$58 NA NA

*LGS Innovations transaction multiples based off combined acquisition including Mastodon Design

LLC from CACI press release







1/7/2019 1/7/2019 Parsons Corporation OGSystems, LLC Defense $300 NA NA

12/31/2018 1/8/2019 Zix Corporation AppRiver, LLC Defense $275 NA NA

12/27/2018 1/6/2019 NTT DATA Corporation Paygent Co.,Ltd. Government

Services

$116 1.7 x NA

12/24/2018 Pending AS Air Lease Holdings 5T DAC Merah Aviation Asset Holding Limited Aerospace $768 NA NA

12/21/2018 Pending Hubline Berhad Layang Layang Aerospace Sdn Bhd Aerospace $7 0.9 x NA

12/18/2018 4/4/2019 The Carlyle Group L.P. StandardAero, Inc* Aerospace $5,000 1.7 x 12.5 x

12/17/2018 12/17/2018 Dinamika Group S.A.C. JSC Technodinamika Holding Aerospace $280 NA NA

12/14/2018 12/14/2018 Mayville Engineering Company, Inc. Defiance Metal Products Inc. Defense $125 NA NA

12/13/2018 Pending Kongsberg Defence & Aerospace AS Aerospace Industrial Maintenance Norway AS Defense $18 1.3 x NA

12/12/2018 12/21/2018 Temenos AG Avoka Technologies Pty, Ltd. Government

Services

$245 NA NA

12/12/2018 12/12/2018 Abdul Razzaq Abdul Hameed Al-Sane

& Sons Group

New Technology Bottling Company K.S.C.C Defense $72 NA NA

12/3/2018 12/31/2018 Olive Investor, L.P. Navistar Defense LLC Defense $200 NA NA

11/30/2018 2/15/2019 Kitron Inc. API Defence USA, Inc. Defense $16 0.7 x NA

11/29/2018 11/29/2018 AerSale Inc. Avborne Accessory Group, Inc. Defense $22 NA NA

11/27/2018 12/21/2018 Argenbright Holdings I, LLC DAL Global Services, LLC Aerospace $78 NA NA

11/27/2018 Pending MBO Parrot S.A. Defense $9 NA NA

11/9/2018 11/28/2018 VIQ Solutions Inc. Net Transcripts, Inc. Defense $7 NA NA

11/8/2018 Pending Longview Aircraft Company of Canada

Limited

All Assets, Intellectual Property and Type Certificates

of Dash 8 Series and Q400 Program


11/5/2018 Pending Glarun Technology Co., Ltd. Nanjing Guorui Defense System Co., Ltd. Defense $1,002 NA NA

11/5/2018 11/15/2018 TP Group plc Westek Technology Limited Defense $5 1.0 x NA

11/5/2018 Pending Glarun Technology Co., Ltd. Nanjing Guorui Defense System Co., Ltd. Defense $1,002 NA NA

11/5/2018 12/27/2018 Nitto Kogyo Corporation Kitagawa Industries Co., Ltd. Aerospace $161 1.5 x 10.8 x

10/30/2018 Pending GMR Hyderabad International Airport

Limited

Hyderabad Menzies Air Cargo Pvt Ltd. Aerospace $16 NA NA

* StandardAero transaction multiples based off Scott-Macon estimates







10/26/2018 12/27/2018 SK Telecom Co., Ltd. SK infosec Co., Ltd. Defense $313 1.7 x 9.6 x

10/24/2018 2/18/2019 Rubis Energie SAS KenolKobil Plc Aerospace $424 NA 11.2 x

10/22/2018 11/20/2018 QinetiQ Group plc Inzpire Group Limited Defense $31 1.8 x 11.8 x

10/19/2018 10/19/2018 Guangzhou Shipyard International

Company Limited

Guangzhou Wenchong Dockyard Co., Ltd. Aerospace $72 0.8 x NA

10/14/2018 Pending Harris Corporation L3 Technologies, Inc. Defense $19,216 1.9 x 13.7 x

10/11/2018 10/17/2018 SolarEdge Technologies, Inc. Kokam Co., Ltd. Defense $136 3.6 x NA

10/11/2018 10/11/2018 Quest Solution, Inc. HTS Image Processing, Inc. Defense $6 NA NA

10/10/2018 3/14/2019 TransDigm Group Incorporated Esterline Technologies Corporation Defense $3,995 2.0 x 13.0 x

10/10/2018 1/10/2019 Thoma Bravo, LLC Imperva, Inc. Defense $1,815 5.2 x NA

10/4/2018 10/11/2018 Vaisala Oyj Leosphere, Inc. Aerospace $44 1.4 x NA

10/4/2018 2/19/2019 Smiths Group plc United Flexible, Inc. Aerospace $345 2.3 x 10.5 x

10/2/2018 11/9/2018 Air Transport Services Group, Inc. Omni Air International, LLC Government

Services

$845 NA 5.8 x

10/2/2018 10/2/2018 Civil Aviation Group SRL Air Moldova, S.A. Aerospace $71 NA NA

10/1/2018 10/18/2018 Bristow Group Inc. Columbia Helicopters, LLC Defense $559 2.0 x 4.8 x

10/1/2018 10/1/2018 Supply Technologies Hydrapower Dynamics Limited Defense $8 NA NA

10/1/2018 10/1/2018 Extant Components Group Holdings,

Inc.

All Assets and Technical Data Rights of NavCom

Defense Electronics, Inc.

Defense $27 2.1 x NA

9/27/2018 10/1/2018 Hanwha Aerospace Co., Ltd. Aviation Business of Hanwha Corporation Aerospace $147 1.1 x NA

9/27/2018 9/27/2018 AMMO, Inc. SW Kenetics, Inc. Government

Services

$7 NA NA

9/25/2018 Pending Universal mCloud Corp. Ascent Aerosystems LLC Defense $7 NA NA

9/25/2018 9/25/2018 Guangdong Shenglu

Telecommunication Tech. Co., Ltd.

Chengdu Chuangxinda Microwave Electronics Co.,

Ltd.

Defense $85 7.1 x NA

9/18/2018 11/26/2018 Ontic Engineering and Manufacturing,

Inc.

Firstmark Corporation Defense $97 NA NA

9/18/2018 2/21/2019 Prosegur SIS Command Security Corporation Aerospace $46 NA 17.8 x

9/13/2018 4/18/2019 Vision Technologies Aerospace

Incorporated

MRA Systems, LLC Aerospace $506 1.2 x 10.0 x







9/12/2018 9/12/2018 HEXPOL AB Kirkhill-TA Co. Defense $49 1.1 x NA

9/10/2018 1/14/2019 Science Applications International

Corporation

Engility Holdings, Inc. Defense $2,450 1.3 x 13.7 x

9/6/2018 9/6/2018 Zhejiang Huazheng New Material Co.,

Ltd.

Yangzhou Maxi-CUBE Tong Composite Co., Ltd. Aerospace $6 0.4 x 6.3 x

9/6/2018 11/7/2018 Polaris Industries Inc. WSI Industries, Inc. Defense $22 0.6 x 8.7 x

8/31/2018 8/31/2018 NorthEdge Capital LLP Orbis Protect Limited Defense $18 0.5 x NA

8/22/2018 Pending Mahindra Engineering Services Inter-Informatics spol. s r.o. Defense $6 0.5 x NA

8/17/2018 10/17/2018 Shearwater Group PLC Brookcourt Solutions Limited Aerospace $40 1.4 x 15.1 x

8/9/2018 Pending Cyber Security 1 AB Infonet Bilgi Teknolojileri Ticaret Anonim Sirketi Defense $10 0.4 x 6.1 x

8/8/2018 8/31/2018 One Stop Systems, Inc. Concept Development, Inc. Defense $6 NA NA

7/31/2018 2/12/2019 Mission Ready Solutions Inc. Unifire, Inc. Defense $8 NA NA

7/31/2018 7/31/2018 Themis Computer, Inc. Germane Systems LC Government

Services

$45 NA 10.0 x

7/26/2018 8/9/2018 Imperva, Inc. Prevoty, Inc. Defense $141 NA NA

7/25/2018 12/4/2018 AGC Inc. Nelco Products Inc./ Neltec Inc./ Neltec SA/ Nelco

Products Pte. Ltd.


7/16/2018 8/14/2018 Orange Business Services SAS Basefarm AS Defense $410 3.5 x NA

7/13/2018 7/13/2018 TransDigm Group Incorporated SKANDIA, Inc. Aerospace $84 3.2 x NA

7/10/2018 10/24/2018 Aptiv PLC Winchester Interconnect Defense $682 2.7 x NA

7/10/2018 7/10/2018 First Israel Mezzanine Investors Ltd. Bird Aerosystems Ltd Aerospace $80 NA NA

7/9/2018 7/10/2018 Ideagen plc Extensible CAD Technologies, Inc. Defense $7 NA 35.0 x

7/9/2018 7/9/2018 Mimecast Limited Ataata, Inc. Defense $24 NA NA

7/6/2018 7/6/2018 Shenzhen SDG Information Co., Ltd. Beijing Senfetech Corporation Aerospace $58 6.5 x NA

7/5/2018 7/6/2018 Rafael Advanced Defense Systems

Ltd.

Aeronautics Ltd. Defense $124 1.2 x 12.3 x

7/5/2018 7/5/2018 Hickok Incorporated CAD Enterprises, Inc. Aerospace $21 NA NA

7/5/2018 Pending Boeing Brasil Serviços Técnicos

Aeronáuticos Ltda

Commercial Aircraft Operations of Embraer Defense $5,250 NA NA







7/2/2018 7/2/2018 L3 Technologies, Inc. Applied Defense Solutions, Inc. Aerospace $50 NA NA

6/21/2018 9/13/2018 Goshawk Aviation Limited SKY Aviation Leasing International Limited Government

Services

$2,800 NA NA

6/8/2018 7/23/2018 Gardner Aerospace Holdings Limited Northern Aerospace Limited Aerospace $59 NA NA

6/8/2018 Pending EchoStar Corporation Inmarsat Plc Defense $5,879 4.1 x 8.4 x

6/7/2018 6/7/2018 Sichuan Changhong Electric Co.,Ltd. Lingbayi Electronic Group Co., Ltd. Defense $270 2.8 x NA

6/4/2018 6/4/2018 TT Electronics plc Precision, Inc. Aerospace $28 1.3 x NA

5/31/2018 7/2/2018 Ciena Corporation Packet Design, LLC Defense $40 NA NA

5/23/2018 7/12/2018 Zhejiang Tiancheng Controls Co., Ltd. Acro Aircraft Seating Ltd. Aerospace $75 NA NA

5/17/2018 5/18/2018 China Aviation Oil Navires Aviation Limited Defense $8 NA NA

5/17/2018 5/17/2018 PCL EMOSS Mobile Systems B.V. Government

Services

$17 2.4 x NA

5/9/2018 5/9/2018 ON Semiconductor Corporation SensL Technologies, Ltd. Defense $71 NA NA

5/8/2018 5/9/2018 EnviroStar, Inc. Scott Equipment, Inc. Aerospace $15 NA NA

5/8/2018 5/8/2018 COMSYS Holdings Corporation SYSKEN Corporation Government

Services

$89 0.3 x 7.4 x

5/7/2018 5/8/2018 Cerberus Capital Management, L.P. WFS Global SAS Defense $1,389 1.0 x NA

5/7/2018 5/7/2018 Trinity Gate Limited Grandshores Technology Group Limited Government

Services

$88 2.1 x 16.7 x

5/3/2018 5/4/2018 F-Secure Oyj MWR InfoSecurity Limited Defense $139 4.9 x NA

5/3/2018 5/3/2018 Axon Enterprise, Inc. VIEVU LLC Defense $13 NA NA

5/3/2018 7/2/2018 OSRAM Licht AG Vixar Inc. Defense $79 NA NA

5/3/2018 Pending Tata Advanced Systems Limited Defense Business of Tata Motors Limited Aerospace $277 NA NA

5/3/2018 3/29/2019 Tata Advanced Systems Limited TAL Manufacturing Solutions Limited Aerospace $94 1.9 x 7.1 x

5/3/2018 7/10/2018 Aviation Links Ltd. Pegasus Tourism Holdings Ltd Aerospace $20 NA NA

5/2/2018 8/20/2018 M.T.I Wireless Edge Ltd. MTI Computers and Software Services Defense $17 0.5 x 6.7 x

5/2/2018 Pending Spirit AeroSystems Holdings, Inc. S.R.I.F N.V. Defense $650 NA NA






5/1/2018 6/29/2018 American Industrial Partners L-3 Communications Vertex Aerospace LLC and

Related Assets

Defense $540 NA NA

4/30/2018 5/1/2018 BBA Aviation plc EPIC Aviation, LLC Defense $88 NA NA

4/30/2018 5/1/2018 Aero Structures Long Island, Inc. Triumph Structures-Long Island, LLC Aerospace $11 NA NA

4/30/2018 5/1/2018 MSC Industrial Direct Co., Inc. All Integrated Solutions Aerospace $86 1.3 x NA

4/30/2018 5/1/2018 Tyler Technologies, Inc. Sage Data Security, LLC Aerospace $12 NA NA

4/26/2018 9/23/2018 Inypsa Informes y Proyectos, S.A. Carbures Europe, S.A. Defense $126 1.4 x NA

4/24/2018 10/17/2018 QinetiQ Group plc E.I.S. Aircraft Operations of E.I.S. Group Aerospace $86 3.5 x 13.0 x

4/23/2018 10/11/2018 Saber Serviços Educacionais S.A. Somos Educação S.A. Aerospace $2,161 3.9 x 18.2 x

4/18/2018 4/30/2018 Tyler Technologies, Inc. Socrata, Inc. Aerospace $150 6.0 x NA

4/10/2018 10/1/2018 Tenneco Inc. Federal-Mogul LLC Government

Services

$5,400 0.7 x 7.2 x

4/9/2018 6/26/2018 Cognosec AB Advantio Limited Aerospace $11 3.0 x 17.1 x

3/28/2018 5/14/2018 Eastern Pioneer International Aviation

Development Co., Ltd.

Shandong Hairuo General Aviation Co., Ltd. Government

Services

$13 NA NA

Aerospace Median 1.5 x 10.8 x

Aerospace Mean 2.5 x 11.2 x

Defense Median 1.8 x 12.1 x

Defense Mean 2.2 x 13.7 x

Government Services Median 1.7 x 11.9 x

Government Services Mean 1.5 x 12.7 x

SECTION 4: RECENT CONTRACTS



Top 50 Signed Contracts – April 2019

Date Signed Contractor Name Funding Agency Value ($mm) Description of Services

4/12/2019 The Boeing Co. Dept of The Air Force $14,314.3 Modification, Modernization, Engineering, Sustainment and Test of The B-1/B-

52 Weapons Systems

4/29/2019 The Boeing Co. Dept of The Air Force $5,700.0 Kc-46 Pegasus Combat Capability (Pc2)

4/10/2019 Northrop Grumman Systems Corp., Aerospace

Systems

Dept of The Navy $3,169.7 Procurement of 24 Full-Rate Production Lots 7-11 E-2D Ahe Aircraft

4/25/2019 The Massachusetts Institute of Technology

Lincoln Laboratory

Dept of The Air Force $2,038.1 Advanced Technology Research and Development Activities That Focus On

Long-Term Technology Development As Well As Rapid System Prototyping

and Demonstration

4/3/2019 Keenan Fort Detrick Energy Llc Dept of The Army $1,600.0 Energy Services

4/29/2019 Lockheed Martin Corp., Lockheed Martin

Aeronautics Co.

Dept of The Navy $1,148.8 Sustainment Services In Support of The F-35 Lightning Ii Aircraft

4/16/2019 Lockheed Martin Space Dept of The Air Force $879.0 Sustainment Engineering, Maintenance Engineering, Aging Surveillance,

Modification of Systems and Equipment, Software Maintenance, Developmental

Engineering, Production Engineering, and Procurement of The Minuteman Iii

Rs/Rv Subsystem and Related Support Equipment

4/9/2019 Slsco Ltd. Dept of The Army $789.0 Border Replacement Wall Construction

4/23/2019 Vt Halter Marine Inc. Dept of The Navy $745.9 Design and Construction of The U.S. Coast Guard (Uscg) Polar Security Cutter

(Psc) (Formerly The Heavy Polar Ice Breaker)

4/25/2019 Lockheed Martin Dept of The Army $723.6 Procurement of Hellfire Ii Missile Variants

4/29/2019 Raytheon Co. Dept of The Army $663.1 Troposcatter Transmission System, Spares, Repairs, Warranty, System

Engineering, Field Support, Training and Sustainment

4/19/2019 The Boeing Co. Dept of The Air Force $605.0 Production of The Wideband Global Satellite Communication Space Vehicle 11

4/30/2019 Raytheon Missile Systems Dept of The Navy $419.1 Aim-9X Block Ii and Ii+ All Up Round Tactical Missiles, Captive Air Training

Missiles, Captive Test Missiles, Special Air Training Missiles, Advanced Optical

Target Detectors, and Guidance Units (Live Battery)

4/22/2019 Lockheed Martin Corp. Dept of The Army $362.7 Multiple Launch Rocket System M270A0 To M270A2 Launchers; M270A2

Flyaway Package Kit; M270A2 Authorized Stockage List Kits, M270A2

Production Line Spares Kits, Production Line Restart Costs, Improve Launcher

Mechanical System Test Stand Upgrade Services, Proposal Costs, and Over

and Above Repair Services

4/12/2019 Ut-Battelle Llc Department of Energy $287.4 Operation of Government-Owned Contractor-Operated R&D Facilities

4/19/2019 General Dynamics Electric Boat Dept of The Navy $269.3 Manufacturing of 42 Missile Tubes and Missile Tube Outfitting Material In

Support of The Columbia Class Fleet Ballistic Missile Submarine (Ssbn) and

The United Kingdom (Uk) Dreadnought

4/1/2019 The Boeing Co., Boeing Defense Space And

Security

Dept of The Air Force $250.0 Joint Direct Attack Munition/Laser Joint Direct Attack Munition (Jdam/Ljdam)

Technical Services, Aircraft Integration, and Sustainment

4/15/2019 United Technologies Corp., Pratt & Whitney

Engines

Dept of The Navy $201.9 Long-Lead Materials, Parts, and Components For Lot 14 F135 Propulsion

Systems For The F-35 Lightning Ii Joint Strike Fighter Aircraft In Support of The

Air Force, Marine Corps, Navy, Non-U.S. Department of Defense (Non-U.S.

Dod) Participants; and Foreign Military Sales (Fms) Customers

4/30/2019 Raytheon Co. Missile Systems Dept of The Army $200.2 Procurement of M982A1 Excalibur Ib Containerized Projectiles

4/9/2019 Barnard Construction Co. Inc. Dept of The Army $187.0 Design-Bid-Build Construction Project For Primary Pedestrian Wall

Replacement

4/11/2019 Bechtel Group Inc. Department of Energy $175.0 Construction of Government-Owned Contractor-Operated R&D Facilities

4/29/2019 The Boeing Co. Dept of The Army $171.9 Logistics Service In Support of The Ah-64E Apache Attack Helicopter Fleet

4/19/2019 The Boeing Company National Aeronautics and Space

Administration

$171.2 R&D- Space: Station (Applied Research/Exploratory Development)

4/23/2019 Aecom Department of Energy $171.2 Operation of Restoration of Real Property (Public Or Private). All Actions

Necessary To Restore, Rehabilitate, Or Reclaim Property.

4/3/2019 Triwest Healthcare Alliance Corp. Department of Veterans Affairs $169.1 Medical- Other



Top 50 Signed Contracts – April 2019 (Continued)


Date Signed Contractor Name Funding Agency Value ($mm) Description of Services


Aeronautics Co.

Dept of The Navy $151.3 Procurement of Long-Lead ITems For The Manufacture and Delivery of 21 F-35

Lightning Ii Lot 14 Low-Rate Initial Production Aircraft For The Governments of

Australia (15) and Norway (6)4/8/2019 Blue Cross And Blue Shield of South Carolina Centers For Medicare and Medicaid

Services

$147.4 Social- Government Health Insurance Programs

4/1/2019 Newport News Nuclear Bwxt-Los Alamos Llc Department of Energy $140.2 Other Environmental Services

4/30/2019 Northrop Grumman Systems Corp. Dept of The Navy $132.3 Procurement of Hardware and Systems Engineering Technical Support,

Analysis and Studies To Integrate The Department of Navy (Don) Large Aircraft

Infrared Countermeasures (Laircm) System Onto Aircraft For The Navy, Army,

and The Governments of The United Kingdom and Norway

4/9/2019 Aecom Technology Corporation Department of Energy $129.7 Operation of Waste Treatment and Storage Facilities

4/30/2019 Gulf Island Shipyards Llc Dept of The Navy $128.6 Construction of Two Towing, Salvage and Rescue Ships

4/26/2019 The Boeing Co. Dept of The Air Force $127.6 Long Lead ITems For The B61-12 Life Extension Program

4/17/2019 General Dynamics - Ordnance And Tactical

Systems

Dept of The Army $125.0 Mk80 Series General Purpose and Blu-109 Tritonal Bomb Components

4/18/2019 Tristar Air, Llc Dept of The Navy $121.4 Aerial Refueling Services In Support of The Department of The Navy, Other

Department of Defense Agencies, and Foreign Military Sales Customers

4/17/2019 Wisestaff Llc Dept of The Army $118.1 Provide Licensed Vocational Nurses and Certified Nursing Assistants To The

San Antonio Military Health System


Aeronautics Co.

Dept of The Navy $117.1 Air Vehicle Initial Spares To Include A Deployment Spares Package, Afloat

Spares Package, and Associated Consumables To Support Air Vehicle Delivery

Schedules For The F-35 Lightning Ii Joint Strike Fighter Aircraft In Support of

The Air Force and Marine Corps

4/26/2019 Brookhaven Science Associates Llc Department of Energy $115.6 Operation of Government-Owned Contractor-Operated R&D Facilities

4/9/2019 Comprehensive Health Services Holdings Inc Office of The Assistant Secretary

For Administration (Asa)

$113.7 Social- Other

4/26/2019 Triad National Security Llc Department of Energy $113.2 Operation of Miscellaneous Buildings

4/12/2019 Chemonics International Inc Agency For International

Development

$108.0 Support- Professional: Engineering/Technical

4/18/2019 Fluor Idaho Llc Department of Energy $105.4 Other Environmental Services

4/11/2019 Leland Stanford Junior University Department of Energy $102.6 Operation of Government-Owned Contractor-Operated R&D Facilities

4/17/2019 Rlf And Sherlock Smith And Adams Jv Dept of The Navy $100.0 Architectural Design and Engineering Services For Medical Projects In The

Naval Facilities Engineering Command Area of Responsibility Worldwide

4/11/2019 American Electronic Warfare Associates Inc. Dept of The Navy $99.7 Engineering and Technical Services In Support of The Naval Air Warfare Center

Aircraft Division’S Battlespace Modeling and Simulation

4/19/2019 General Atomics Aeronautical Systems Inc. Dept of The Army $99.0 Performance Based Logistics Support Services For The Mq-1C Gray Eagle

Unmanned Aircraft System

4/22/2019 Fluor Corporation Department of Energy $95.0 Salvage- Demolition of Structures/Facilities (Other Than Buildings)

4/26/2019 Raytheon Co. Dept of The Air Force $94.3 Purchase of An Additional 54 Production An/Das-4 Multi-Spectral Targeting

System Model B High Definition/Target Location Accuracy (Hd/Tla) Turrets and

One Das-1A To Das-4 Turret Unit Upgrade

4/16/2019 Mitchco International Inc. Dept of The Army $94.3 Full Food Services and Dining Facility Attendants At Fort Sill, Oklahoma, Dining

Facilities

4/24/2019 Leidos Innovations Corp. Dept of The Army $94.0 Information Management and Information Technology Services

4/11/2019 The Boeing Co. Dept of The Navy $93.6 Manufacture, Test, Installation, Integration, and Qualification of Up To Eight

Wideband Satellite Communication Kits In The P-8A Poseidon Aircraft For The

Navy

Total Top 50 $38,279.8

Total Other Signed in April $13,796.3



Contract Overview by Agency and NAICS Code – April 2019*

Top 20 Agencies Ranked by Total Contract Value Signed in April

Top 20 NAICS Codes Ranked by Total Contract Value Signed in April

* Only includes contracts with value greater than $150,000

Rank Funding Agency Contract Value ($mm) # of Contracts

1 Dept of The Air Force 25,187$ 50

2 Dept of The Navy 9,520 152

3 Dept of The Army 6,318 78

4 Department of Energy 2,169 196

5 National Aeronautics and Space Administration 1,587 559

6 Department of Veterans Affairs 1,050 805

7 Federal Acquisition Service 586 315

8 Agency For International Development 434 123

9 Federal Aviation Administration 421 324

10 Department of State 363 239

11 Centers For Medicare and Medicaid Services 306 63

12 National Institutes of Health 264 189

13 Internal Revenue Service 238 121

14 U.S. Marshals Service 206 66

15 U.S. Customs and Border Protection 167 69

16 U.S. Coast Guard 164 176

17 Public Buildings Service 155 189

18 National Science Foundation 154 13

19 Transportation Security Administration 137 47

20 Federal Bureau of Investigation 137 91

Total Top 20 by Funding Agency 49,562$ 3,865

Rank NAICS Code Description Contract Value ($mm) # of Contracts

1 Other Guided Missile And Space Vehicle Parts And Auxiliary Equipment Manufacturing 15,635$ 16

2 Aircraft Manufacturing 10,285 18

3 Facilities Support Services 3,040 185

4 Research And Development In The Physical, Engineering, And Life Sciences (Except Biotechnology) 2,784 161

5 Guided Missile And Space Vehicle Manufacturing 2,687 22

6 Other Computer Related Services 1,981 540

7 Other Support Activities For Air Transportation 1,946 54

8 Industrial Nonbuilding Structure Construction 1,316 11

9 Ship Building And Repairing 1,164 49

10 Engineering Services 1,051 357

11 Computer Systems Design Services 885 412

12 Military Armored Vehicle, Tank, And Tank Component Manufacturing 678 3

13 Commercial And Institutional Building Construction 672 236

14 Administrative Management And General Management Consulting Services 613 466

15 Remediation Services 552 87

16 Small Arms, Ordnance, And Ordnance Accessories Manufacturing 501 6

17 All Other Professional, Scientific, And Technical Services 323 192

18 Hazardous Waste Treatment And Disposal 316 9

19 Other Heavy And Civil Engineering Construction 277 24

20 Security Guards And Patrol Services 267 143

Total Top 20 by NAICS Code Description 46,972$ 2,991

SECTION 5: KEY AEROSPACE & DEFENSE STATS



Key Aerospace & Defense Stats

ASM – Global (in thousands) # of Passengers - Global

RSM – Global (in thousands) Load Factor % - Global

Commercial Aerospace Orders

Source: FAA

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

200,000,000

ASM MoM Growth %

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

RPM MoM Growth %

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Load Factor % MoM Growth %

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

MoM Growth % # of Passengers

LTM as of 3/2019 LTM as of 3/2018 YoY % Change 3/2019 2/2019 1/2019 12/2018 11/2018 10/2018 9/2018 8/2018 7/2018 6/2018 5/2018 4/2018 3/2018

Narrowbody Unit Orders 1,154 1,928 -40.1% 6 -20 20 556 78 66 69 95 15 174 33 62 160

Boeing 538 846 -36.4% 3 1 25 181 41 0 32 90 15 126 24 0 158

737 538 846 -36.4% 3 1 25 181 41 0 32 90 15 126 24 0 158

Airbus 616 1,082 -43.1% 3 -21 -5 375 37 66 37 5 0 48 9 62 2

A320 616 1,082 -43.1% 3 -21 -5 375 37 66 37 5 0 48 9 62 2

Widebody Unit Orders 267 268 -0.4% 77 -61 10 14 10 24 33 4 20 75 35 26 29

Boeing 240 202 18.8% 40 4 18 22 7 6 33 4 12 28 19 47 29

787 133 120 10.8% 20 0 18 0 0 5 15 3 10 0 15 47 24

777 66 56 17.9% 20 0 0 17 6 1 0 1 2 15 4 0 2

767 37 7 428.6% 0 4 0 1 1 0 18 0 0 13 0 0 3

747 4 19 -78.9% 0 0 0 4 0 0 0 0 0 0 0 0 0

Airbus 39 66 -40.9% 37 -65 -8 4 3 18 0 0 8 47 16 -21 0

A350 77 33 133.3% 37 0 0 4 0 0 0 0 8 35 15 -22 0

A380 -31 14 NM 0 -23 -8 0 0 0 0 0 0 0 0 0 0 A330 35 19 84.2% 0 0 0 0 3 18 0 0 0 12 1 1 0



Key Aerospace & Defense Stats

Global Business Jet Traffic

(Flights in Thousands)

3/2019 Global Business Jet Traffic

by Type (394K Flights)

Global Business Jet Deliveries2018 Global Business Jet Deliveries

By Market (798 Deliveries)

U.S. Defense Budget

* Base Budget Request

Source: GAMA, Office of the Under Secretary of Defense

83%

17%

Domestic International

518592

750

887

1,137

1,317

874767

696 672 678722 718

667 676

798

0

200

400

600

800

1,000

1,200

1,400

60.0%20.0%

10.2%

5.8%4.0%

North America Europe Asia-Pacific Latin America Middle East & Africa

FY 2019 vs FY 2020

By Appropriation Title ($ in billions) FY 2016 FY 2017 FY 2018 FY 2019 FY 2020* Dollar Δ % Δ

Military Personnel $ 135.3 $ 135.4 $ 141.7 $ 150.7 $ 155.8 $ 5.0 3.3%

Operation and Maintenance 197.5 197.1 223.3 278.8 292.7 13.9 5.0%

Procurement 110.7 110.7 115.0 147.3 143.1 (4.2) -2.9%

RDT&E 68.8 69.6 82.7 95.3 104.3 9.0 9.5%

Military Construction/Family Housing 6.9 6.5 8.4 11.3 21.1 9.8 87.4%

Other 2.5 2.4 3.5 1.7 1.4 (0.2) -12.7%

Total $ 521.7 $ 521.8 $ 574.5 $ 685.0 $ 718.3 $ 33.4 19.2%

FY 2019 vs FY 2020

By Military Department ($ in billions) FY 2016 FY 2017 FY 2018 FY 2019 FY 2020* Dollar Δ % Δ

Army $ 123.3 $ 122.9 $ 137.1 $ 178.9 $ 191.4 $ 12.5 7.0%

Navy 159.3 159.1 171.5 195.6 205.6 9.9 5.1%

Air Force 145.7 146.5 165.5 192.9 204.8 11.8 6.1%

Defense Wide 93.4 93.3 100.4 117.6 116.6 (0.9) -0.8%

Total $ 521.7 $ 521.8 $ 574.5 $ 685.0 $ 718.3 $ 33.4 19.2%

394

352

361

386

402

367

390390

365

376

390

380

396

-2%

0%

2%

4%

6%

8%

10%

320

330

340

350

360

370

380

390

400

410

# of Flights MoM Growth %

SECTION 6: ABOUT SCOTT-MACON



Overview

Michael Papazis has over 15 years of investment banking experience. Prior to joining Scott-Macon, Mr. Papazis

was a Vice President of Aerospace & Defense Investment Banking at Oppenheimer & Co. Before Oppenheimer,

Michael was a Senior Associate within the Aerospace & Defense Investment Banking Group at Jefferies & Company.

Mr. Papazis began his career as an Analyst at Deutsche Banc Alex Brown in Baltimore, Maryland. Throughout his

career, Mr. Papazis has worked on several M&A, equity and debt financing transactions for various Aerospace &

Defense clients including Lockheed Martin, Kratos Defense & Security and Essex Corporation.

Mr. Papazis is a graduate of Dartmouth College with a B.A. in Economics and Government, Cum Laude. He also

holds an M.A. in International Affairs from the Johns Hopkins University School of Advanced International Studies

(SAIS).

Michael N. PapazisManaging Director


Scott-Macon, Ltd.

Office: (212) 755-8200

Fax: (212) 583-9262

[email protected]

www.scott-macon.com

Selected Transaction Experience

Undisclosed Undisclosed $8,000,000 Undisclosed $80,000,000 $590,000,000

Sale to Sale to Senior Secured Notes & Sale to Initial Public Sale to

Preferred Shares with Offering

Joint Bookrunner

£115,000,000 $38,000,000 Undisclosed $61,000,000 $268,000,000 $270,000,000

a portfolio company of

Acquisition of Hastings Equity Partners Sale to Equity Financing for Debt Financing for Acquisition of

and Admiralty Partners, Inc. Acquisition of Acquisition of

Sale to

Undisclosed £80,000,000 $66,000,000 $380,000,000 Undisclosed

Sale of Securement Sale to Sale to Acquisition of Sale to

Division to



Scott-Macon, Ltd. is one of the oldest independent investment banks in the United States focused on middle market

transactions in the range of $10 million to $500 million. The firm is comprised of senior professionals who have had extensive

transaction experience in the areas of mergers and acquisitions, debt and equity financing, valuations and fairness opinions and

general corporate financial consulting.

Founded in 1973 by Alfred L. Scott, Scott-Macon has remained unique in its commitment to provide clients with senior level

advisors who have had significant investment banking experience as well as, in many cases, direct operating experience. The

firm's philosophy of providing advice, ideas and solutions tempered by the perspective of actual operating experience has

benefited clients over the firm's long history.

Another cornerstone of Scott-Macon’s operating philosophy is a client-oriented approach to investment banking services, in

contrast to today’s transaction-oriented environment. Scott-Macon professionals strive to understand the unique aspects of

each client's operations and will not hesitate to counsel against a transaction if it does not appear to be in the long-term best

interests of a client. The firm’s ownership by its own management team enables and encourages a truly unbiased and

independent perspective; free from the inherent conflicts and cross-selling that can occur when advisory services are integrated

into broader financial services platforms incorporating banking, securities or accounting. The success of Scott-Macon’s client-

oriented approach has been validated over the firm’s history by the high percentage of repeat engagements which the firm has

experienced from its clients.

About Scott-Macon

Aerospace

OEM

Structures

Components

MRO / Aftermarket

Defense

Defense Electronics

Homeland Security

Defense Systems

C4ISR

Government Services

Intelligence

Civil / Non-Defense

SETA / Engineering

IT Services

Aerospace Defense & Government Services Coverage

About Scott-Macon

Over 40 Years of Senior Level Experience, Attention & Execution in Investment Banking

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