Kaney Aerospace announced that it has acquired BVR Technologies Co. from Esterline Corporation. Based in Rockford, Illinois, BVR designs and manufactures gear trains, sensors, and electronic packages for its actuators and servos. The combined company will have over 120 employees with annual sales in excess of $20 million to customers in the aerospace and medical equipment industries. Deal terms were not disclosed.
Cision announced that it has acquired Bulletin Intelligence, a provider of custom, expert-curated executive briefings to C-level executives and government leaders. Bulletin Intelligence has written the daily White House News Summary for the Executive Office of the President since 2001. The deal comes a week after Cision announced that it will go public through a combination with Capitol Acquisition Corp. III. Deal terms were not disclosed.
Deloitte announced that it has expanded its cloud services capabilities through its acquisition of Day1 Solutions Inc., a provider of cloud consulting services. Based in McLean, Virginia, Day1 provides systems integration, managed services, and VAR services to clients in government, healthcare, and other industries. Deal terms were not disclosed.
Orion announced that it has acquired New York-based Structured Network Solutions Inc. (SNS), a provider of design, directory authentication services, IT security policy, design strategies, and storage solutions to government, non-governmental organizations, and not-for-profits. Orion is a portfolio company of DC-based private equity firm Potomac Equity Partners. Deal terms were not disclosed.
Trive Capital announced that its portfolio company, Valence Surface Technologies has acquired Magnetic & Penetrant Services Company (MAPSCO), a Seattle-based provider of metal finishing services to the Aerospace and Defense industries. Deal terms were not disclosed.
3M announced that it has agreed to acquire the Scott Safety business from Johnson Controls for a total enterprise value of $2.0 billion. Based in Monroe, North Carolina and with approximately 1,500 employees worldwide Scott Safety provides self-contained breathing apparatus systems, gas and flame detection instruments, and other safety devices to customers including firefighters, industrial workers, police, military, and rescue teams. The business had 2016 revenues of approximately $570 million and EBITDA of $155 million. Based on a stated multiple of 11 times and expected run rate synergies, the business is projected to generate adjusted EBITDA of approximately $180 million for the 12 month period after closing.
The deal is expected to close in the second half of 2017. Citi and Goldman Sachs are the financial advisors to 3M. Centerview Partners is the financial advisor to Johnson Controls.
Constellis announced that it has agreed to acquire Centerra Group LLC, a government and critical infrastructure services company owned by Alvarez & Marsal Capital. Constellis is also private equity-owned, having been acquired by Apollo Global Management in 2016. Based in Palm Beach Gardens, Florida and with approximately 9,000 employees worldwide, Centerra provides security, fire suppression, and base operations support to US Government clients. The company also provides humanitarian focused services and training to the United Nations and foreign governments.
The transaction is expected to close in the second quarter of 2017. Deal terms were not disclosed. Financing for the deal is being provided by Credit Suisse, Barclays, Citi and Goldman Sachs.
Reuters is reporting that Johnson Controls International plc is looking to divest Scott Safety, its safety gear unit, in a deal that could be worth as much as $2 billion. Scott Safety manufactures respiratory and safety equipment for firefighters, industrial workers, law enforcement and the military. A sale of the non-core asset would shore up the company's balance sheet following its merger with Tyco International plc last year. Centerview Partners is handling the auction and sources say that advanced discussions are underway with potential acquirers including Honeywell International and 3M. A deal could be announced later this month.
The KeyW Holding Corporation announced that it has agreed to acquire Sotera Defense Solutions in an all-cash deal worth approximately $235 million, including an expected $46 million net present value related to acquired net operating loss carryforwards. Sotera is projected to generate $225 million in revenue and $20 million in adjusted EBITDA in 2017. The deal will nearly double KeyW with projected combined revenues of approximately $535 million in 2017 and yield approximately $7 million of cost synergies within 12 to 18 months. KeyW expects the deal to be immediately accretive to 2017 adjusted EPS.
Owned by Ares Management and with over 1,100 employees (80 percent have Top Secret clearance and above), Sotera provides enterprise IT, cybersecurity, data fusion and analytics, intelligence analysis, and C5ISR solutions to the Federal Government and Intelligence Community. The deal will bring KeyW more than 12 prime IDIQ's and GWAC contracts, as well as key customers including FBI, DHS, and Army Intelligence.
RBC Capital Markets and Guggenheim Securities are serving as financial advisors to KeyW. Macquarie Capital and Sagent Advisors are serving as financial advisors to Ares Management and Sotera. The deal is expected to close in the second quarter of 2017.
HEICO Corporation announced that it has agreed to acquire 80.1 percent of the operating units of Air Cost Control (A2C). A2C's founders will retain a 19.9 percent ownership in the business. With operations in France, Germany and the US, A2C is an aviation electrical interconnect product distributor serving air craft manufacturers, sub-tier suppliers and MRO organizations. The transaction is expected to be closed within 30 to 45 days subject to foreign governmental approvals and standard closing conditions. Deal terms were not disclosed.
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