What We’re Reading

Harris Williams ADG Transaction Spotlight

screen_shot_2019-08-07_at_3.22.20_pm.png7/23/19: Harris Williams Advises Axiom Materials on its Sale to Kordsa

  • Harris Williams announces that it advised Axiom Materials, Inc., a portfolio company of Sorenson Capital, on its sale to Kordsa, Inc. for $181 million
  • Axiom is a global leader in advanced composite materials development and manufacturing for the aerospace & defense, space, industrial and emerging technology markets

How Drones Are Revolutionizing The Workaday World - Including Yours

“We have entered the age of the drone — formally called unmanned aerial vehicles (UAVs) or unmanned aircraft systems (UAS). Drones can be any aircraft operated without a human pilot aboard and have been around since World War II when they were first used for military tasks…Their growth is the result of myriad creative drone applications and is limited only by the imaginations of developers seeking fortunes in industrial and governmental needs.”

Aviation Week

Future Proofing Aerospace and Defense Manufacturing for Industry 4.0

“In a recent report Deloitte defines ‘Aerospace & Defense 4.0’ as the application of Industry 4.0 technologies for developing new cost-effective products and services, making existing products smarter using sensors and connectivity, and leveraging advanced manufacturing processes…Still, this may seem like a daunting task for many manufacturers, particularly those tier two and three companies that play a vital supporting role in the manufacturing ecosystem but lack large manpower and monetary resources.”

Aviation Today

DARPA Leads Drive to Build Trust in AI for Aerospace

“From concept exploration to autonomous combat, artificial intelligence (AI) is being introduced into new areas of aerospace and defense. Machine learning has already enabled rapid strides in data analytics, but the next steps could have even greater impact, from how aircraft are designed and manufactured to how they are crewed and flown.”

Aviation Week

What’s Left in the Dust of a Massive Merger?

“There’s a phrase — the mid-market squeeze — that encapsulates a truism in defense contracting: If you’re not really big, and you’re not categorically small, then you’re going to have a harder
time competing.”

Defense News

Perspective on Public Marketsa,b,1

Stock Price Performance - Last Twelve Months

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Most Significant Stock Price Movement - June 30th to July 31st

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Announced acquisition by Advent International for £4 billion

 

 

 

screen_shot_2019-08-07_at_3.30.43_pm.pngOutperformance driven by strong recent quarterly revenue as well as recently awarded contract with the U.S. Navy

 

 

 

 

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Record bookings and recent acquisition of American Panel Corporation contributed to price increase

 

 

 

Recent M&A Transactions2

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adg_0.pngIndicates disclosed enterprise values in millions USD, unless denoted with “B” (billion)

a. Current stock prices in USD as of 7/31/19

b. Aircraft OEMs: BA, BBD.B, EADS, ERJ

         Aerospace Supply Chain & Aftermarket Support: AIR, ARNC, ATRO, B, BBA, DCO, HEI, HRX, HXL, KAMN, MAL, MGGT, MOG.A, ROLL, SAF, SNR, SPR, TDG, TGI, WAIR, WWD

         Diversified Industrial: AME, CR, CW, ETN, GE, HON, PH, RR, TXT, UTX

         Defense Prime Contractors: BA, BAE, EADS, GD, HO, HII, LMT, NOC, RTN

         Defense Technologies: AVAV, CHG, CMTL, COB, CUB, ESLT, FLIR, KTOS, LHX, MRCY, TDY, ULE

         Government Services: BAH, CACI, LDOS, MANT, SAIC, VEC

         Diversified Services: ACM, BAB, FLR, GIB, ICFI, JEC, KBR, SRP

 

1. Capital IQ

2. Mergermarket

 

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