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.
Mercury Systems Inc. announced that it has acquired Richland Technologies LLC (RTL), a company that specializes in safety-critical and high integrity systems, software, hardware development, and safety-certification services for mission-critical applications. RTL serves the commercial and military aerospace markets. Deal terms were not disclosed.
CTS Corporation announced that it has acquired Noliac A/S, a company headquartered in Denmark that designs and manufactures tape cast and bulk piezoelectric components, sensors and transducers to customers in the aerospace & defense, test & measurement, medical and industrial markets. Deal terms were not disclosed.
General Dynamics announced that it has acquired the Electronics and Communications Division of Advatech Pacific, which designs and manufactures tactical, cyber-secure and cross-domain products for DoD and international military customers. TACDS is a ruggedized, NSA-certified solution found on a variety of armored and ISR platforms. CenturionCDS is designed for dismounted military personnel. The acquired business will be part of the General Dynamics Mission Systems business unit. Deal terms were not disclosed.
PE-firm J.F. Lehman & Company announced that it has acquired PSSC Holding Co. and its subsidiary BEI Precision Systems & Space Company Inc. (BEI PSSC), a provider of high-accuracy positioning sensor technologies and advanced design, manufacturing and testing for resilient products and systems. The company's products are used in defense and space applications.
Deal terms were not disclosed. Evercore Partners advised J.F. Lehman while KippsDeSanto & Co. advised BEI PSSC.
Mercury Systems Inc. announced that it has acquired Oxnard, California-based Delta Microwave LLC, a designer and manufacturer of RF, microwave and millimeter wave sub-assemblies for the military and space markets. The purchase price is $40.5 million in cash and the deal is projected to generate significant cost synergies and tax benefits from the transaction. Delta had 2016 revenues of $12.8 million and the company is projecting rapid growth based on its backlog of funded orders.
Leonardo announced that its US subsidiary Leonardo DRS has agreed to acquire Daylight Solutions Inc. for $150 million including an earnout based on achieving certain financial and operating targets for 2017. The deal values the company at 9x 2017 EBITDA. Daylight Solutions is a developer and supplier of quantum cascade laser products and technologies.
Airbus announced that it has completed the sale of its Defense Electronics business to KKR in a deal worth 1.1 billion Euros. The deal was first announced last March. The Germany-based business, which will be renamed Hansoldt, has annual revenues of approximately 1 billion Euros and provides mission-critical sensors, integrated systems and services for various defense and security applications. Airbus will maintain a 25.1 percent stake in the business.
BAE Systems Inc. announced that it has acquired IAP Research, a company focused on the development and production of electromagnetic launchers, power electronics, and advanced materials. According to the press release, the acquisition "enhances both IAP Research and BAE Systems’ capabilities for the Engineering and Manufacturing Development of the Electromagnetic Railgun (EMRG)". IAP Research has approximately 40 employees and has been a subcontractor to BAE for more than a decade. Deal terms were not disclosed.
Teledyne Technologies Inc. announced that it has agreed to acquire e2v technologies plc for 275 pence per share, or an enterprise value of $789 million. e2v provides high performance image sensors and arrays, components, subsystems, and semiconductors for space, defense, healthcare, industrial, and communications applications. The company generated revenues of $289 million and adjusted EBITDA of approximately $64 million for the twelve month period ending September 30, 2016.
e2v was advised by Investec Bank plc and N M Rothschild & Sons while Teledyne was advised by Citigroup Global Markets Limited. The deal is expected to close in the first half of calendar 2017.
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