On Monday, AAR Corp. announced that it has reached an agreement with TransDigm Group Incorporated to sell its Telair Cargo Group, comprised of Telair International, Telair U.S., and Nordisk Aviation Products.
Earlier this week, the U.S. State Department announced that it will begin to allow the sale of armed unmanned aircraft systems (“UAS”) to foreign militaries. The new policy comes as the Obama administration has embraced a strategy of training and equipping its international allies.
Bombardier Inc. underwent an executive reshuffle this week as Chief Executive and President, Pierre Beaudoin, grandson of company founder, Joseph-Armand Bombardier, stepped down from his position to make way for former CEO of United Technology Corporation’s aerospace division, Alain Bellemare to take over.
On Friday, Harris Corp. announced it has reached an agreement to acquire Exelis Inc. in a cash and stock transaction with a purchase price of $4.4 billion. The deal, which is expected to close in June, features a $23.75 per share price tag, representing a 34% premium over the stock’s closing price on Thursday.
Earlier this week, General Dynamics reported strong 4Q14 results, largely attributable to the performance of its Gulfstream business planes. The Company exceeded analysts’ consensus estimates of $2.13 earnings per share (“EPS”) with EPS of $2.19.
Space Exploration Technologies Corporation (“SpaceX”) raised $1 billion in a financing round with two investors, Google and Fidelity Investments. Google took down $900 million of the financing in exchange for a 7.5% stake in SpaceX.
An increasing portion of Federal contractor M&A activity in recent years has been characterized by the emerging phenomenon of transactions amongst middle market companies. This trend has been driven primarily by: (i) ability to enhance business development capabilities; (ii) increasing middle market competition; (iii) the challenge of transition from small business to large, and (iv) capitalizing on priority market access.
On Thursday, Bombardier Inc. announced that it intends to temporarily halt work on one of its flagship models, the Learjet 85 aircraft. Delivery of Bombardier’s Learjet 85 was originally scheduled for the end of 2013, but subsequently delayed beyond 2014 given a number of manufacturing problems.