Ultra Electronics Holdings plc announced that it has agreed to acquire Sparton Corporation for $23.50 per share or an equity value of $234.8 million. The deal equates to a pro forma FY2016 EV/EBITDA multiple of 7.6x. Based in Schaumburg, Illinois, Sparton provides sophisticated engineered products and manufacturing services for electromechanical devices to clients in markets including aerospace, military, medical, biotechnology and industrial. Wells Fargo Securities and Raymond James & Associates represented Sparton while RBC advised Ultra electronics.
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.
Brixey & Meyer Capital (BMC) announced that it has acquired Stillwater Technologies, a supplier of precision machining and resistance welding solutions to customers in the communications, aerospace, defense, automotive and energy sectors. Stillwater is the second deal for BMC’s first fund which was launched in November 2015. The $18 million fund invests in lower middle market companies with $1 to $3 million in cash flow. Deal terms were not disclosed.
Alpha Sintered Metals, a portfolio company of O2 Investment Partners, announced that it has acquired Precision Made Products (PMP). Based in Brunswick, Ohio, PMP provides CNC machining capabilities to customers in the medical, aerospace, and firearms markets. Deal terms were not disclosed.
UES International Pty Ltd. announced that it has acquired Panther Engineering Inc., a Fullerton, California-based manufacturer specializing in the design in design, engineering, and production of CNC parts, tooling dies and molds for the US military, defense and aerospace industries. The company’s clients include SpaceX, Boeing, Titan International, and the US Navy. Deal terms were not disclosed.
Sparton Corporation announced that it has engaged Wells Fargo Securities LLC to find it a buyer. This development comes after the company’s CEO and SVP for Corporate Development abruptly left the company in February. Sparton, a provider of electromechanical devices and contract manufacturing services to both industry and the military, was itself a serial acquirer during the last few years (find their deals in our M&A database). Unfortunately for the company, some of the challenges brought on by the acquisitions has led it to being put on the auction block.
API Technologies Corporation announced that it has agreed to be acquired by J.F. Lehman & Company, an aerospace and defense-focused private equity firm, for $2.00 per share in cash or an enterprise value of $306 million (based on the company's balance sheet as of August 31, 2015). API Technologies provides RF/microwave solutions, microelectronics, electromagnetic integrated solutions, power solutions, secure systems and information assurance, and electronic manufacturing services to commercial, government, and military customers. For the twelve-month period ending August 31, 2015, the company had revenues of $229 million and adjusted EBITDA of $22.6 million.
The deal is expected to close in the second fiscal quarter of 2016. Jefferies LLC is the financial advisor and Wilson Sonsini Goodrich & Rosati is the legal advisor to API Technologies.
PE Hub reports that Perry, Florida-based Technical Ordinance Solutions has acquired Energy Technical Solutions Inc. and Atomic Machine & EDM Inc. No information was available for Energy Technical Solutions. Atomic Machine & EDM provides manufacturing capabilities to government and commercial clients. Revere Capital provided $3.75M in financing for the acquisitions as well as new manufacturing equipment. Rush Street Capital was the financial advisor to Technical Ordinance Solutions.
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