Benchmark Electronics Inc. announced that it has completed its acquisition of Secure Communication Systems from Capital for a purhcase price of $230M. Secure provides customized high-performance electronics, sub-systems, and components for the aerospace and defense markets. Benchmark expects the deal to be immediately accretive to EPS. JP Morgan Securities was the financial advisor to Benchmark and Sheppard Mullin Richter & Hamilton was legal counsl. Secure was represented by Harris Williams & Co. and O'Melveny & Myers LLP.
Reuters is reporting that BAE is in talks to sell its US manpower and services business to Veritas Capital for a purchase price of more than $1B. The deal would not include the US intelligence and security businesses, or the cyber security operations. Rumor has it that Leidos had been pursuing these same assets but that those discussions have broken down.
Update 11/12/15: BAE released a statement basically stating nevermind, we're keeping our businesses, thank you very much.
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Honeywell announced that it has entered into an agreement to acquire Ontario, Canada-based COM DEV International, a leading manufacturer of space hardware subsystems, for an aggregate purchase price of C$455M ($345M USD), net of cash and debt. Prior to closing, COM DEV will spin-off its exactEarth subsidiary to current shareholders which means Honeywell will be acquiring just the electrical and optical components and subsystems equipment business. exactEarth is a provider of global maritime vessel data fro ship tracking and maritime situational awareness solutions. COM DEV projects 2015 revenue of approximately C$210M ($160M USD) and an adjusted 2015 EBITDA which will result in a purchase price multiple of approximately 10 times.
Honeywell Aerospace President and CEO, Tim Mahoney states: "COM DEV's differentiated technologies and strong position in the growing connectivity industry make the company an attractive addition to our business. We are equally excited about what we can bring to COM DEV, specifically our broad product portfolio, deep industry expertise and relationships, global sales force and brand, and our proven Honeywell Operating System. We are confident that all of our key processes and initiatives will be immediate differentiators for COM DEV."
The transaction is expected to close by the end of the first quarter in 2016. Financial and strategic advisors for COM DEV include Canaccord Genuity Corp. and The Black Box Institute. Legal advisors for COM DEV and exactEarth include Gardiner Roberts LLP, Osler Hoskin & Harcourt LLP, and Stikeman Elliott LLP.
Read COM DEV's press release for more details on the transaction.
Oasis Systems announced that it has acquired Maryland-based MAR Inc. in an all-cash transaction. According to the press release, MAR is "a high quality provider of Systems Engineering and Integration, Information Technology/Cyber Security, Specialized Facilities Management, and Intelligence and Special Programs to the U.S. Navy and other Federal Agencies."
MAR's contract vehicles include GSA Alliant SB and SeaPort-e.
Bluestone Capital served as advisor to MAR, and Houlihan Lokey served as advisor to Oasis on the transaction. Deal terms were not disclosed.
Lockheed Martin announced that it has completed the acquisition of Sikorsky Aircraft, which will now be called Sikorsky, a Lockheed Martin company. The purchase price was $9B or $7.1B after accounting for tax benefits resulting from the transaction. Dan Schultz, who was a VP for Lockheed Martin's Ship & Aviation Systems business and led the pre-closing integration efforts, has been named president of Sikorsky.
IAP Worldwide Services Inc. announced that it has acquired the Aviation and Logistics (A&L) and the Tactical Communications & Network Solutions (TCNS) business units from DRS Technologies Inc. A&L provides aircraft repair management, logistics and mission support services while TCNS provides engineering, IT, and communications support to the DoD and other agencies.
According to the press release: "The acquisition will increase the capabilities that IAP delivers to customers worldwide and will more than double the size of IAP’s addressable market."
Deal terms were not disclosed.
ADS Inc. announced that it has completed the acquisition of Zug, Switzerland-based Theodor Wille Intertrade (TWI), a leading provider of logistics and supply chain solutions to the Department of Defense (DOD). The deal was originally announced in September. TWI serves customers in the US EUCOM and CENTCOM regions by providing construction materials, equipment, hardware, food and food services as well as logistics and transportation management services. TWI and ADS are two of only fifteen companies that are Gold-Tier suppliers for the Defense Logistics Agency (DLA).
According to the press release: "Joining forces with TWI allows ADS to immediately diversify its business into the food and subsistence market. The ability for ADS to combine its global capabilities with TWI’s existing logistics, transportation and supply chain management services expertise in local markets throughout Europe, the Middle East and Central and Southwest Asia will bring tremendous benefits to its customers and partners."
Deal terms were not disclosed.
Preferred Systems Solutions (PSS) announced that it has acquired Leesburg, Virginia-based GSM Consulting. According to GSM's website, the company's 70+ employees provide software development, systems engineering, infrastructure, and network engineering services to Federal Government agencies and Fortune 500 companies. We estimate that the company has annual revenues of $10-$12M. According to the press release, "The acquisition of GSM strengthens PSS’s position as a leading edge provider of high-end software, cyber, and mobile solutions to the Intelligence Community."
PSS is a portfolio company of CM Equity Partners. Aronson Capital Partners advised GSM on the transaction. Deal terms were not disclosed.
Point Blank Enterprises, a portfolio company of Sun Capital Partners, announced that it has acquired the assets of The Protective Group Inc. (TPG), a ballistics armor manufacturer and systems integrator. Since 1971, TPG has been developing lightweight composite personnel and vehicle armor for the US military including the Army, Special Operations Forces, Navy, and Marine Corps.
Point Blank CEO Daniel Gaston comments: "The acquisition of TPG further strengthens our product and technology portfolio in personnel body armor protection, while adding new capabilities in the areas of engineering and systems integration for both aircraft and vehicular armor. Our businesses have complementary assets and sell to many of the same branches of the U.S. Military. We are delighted to bring The Protective Group into our organization and look forward to working with its team to leverage our joint portfolios and skillsets, while providing those in combat with the greatest protection possible.”
Deal terms were not disclosed.
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