Leading aerospace, defense and government services transaction diligence provider CSP Associates, Inc., advised on more than 30 M&A deals in 2013, including 13 announced transactions with an aggregate enterprise value of nearly $4 billion.
Cambridge, MA – February 11, 2014 – As the leading provider of business diligence advisory services to the aerospace, defense, and government markets for the past 25 years, CSP’s announced transactions illustrate the breadth of private equity and strategic buyer interest in our served markets.
In 2013, despite continuing U.S. federal budget headwinds and uncertain defense spending priorities, CSP clients were active in acquiring leading players in resilient defense and government services market segments.
- CACI International acquired Six3 Systems, a premier provider of highly specialized services in the areas of cyber and signals intelligence; intelligence, surveillance, and reconnaissance; and intelligence operations.
- Aurora Capital acquired National Technical Systems, the largest independent provider of testing and certification services to the aerospace and defense markets.
- Excelitas Technologies, a portfolio company of Veritas Capital, acquired Qioptiq, a major UK-based supplier of photonic systems and technology for defense, space, and aviation applications.
- Secure Communications, a portfolio company of Vance Street Capital, acquired Tactical Micro, a custom developer of range instrumentation and audio/video broadcasting and recording systems for use on military training ranges.
- Madison Dearborn Partners and CoVant announced their intent to acquire LGS Innovations, a leading provider of secure networking, satellite communications, VoIP, optical routers and other solutions for US national security, defense, and advanced research customers.
- Veritas Capital agreed to acquire Anaren, Inc., a longstanding provider of market-leading RF Technology and products to the defense, wireless communications, medical and industrial markets.
Commercial aviation M&A activity also continued at a strong pace for the third consecutive year, despite rising valuations and continuing consolidation in the aircraft OE supply chain. Transactions supported by CSP focused on the engine components market — the second largest aviation OE segment, after aerostructures – and on companies well-positioned in niche aircraft interiors and subsystem segments.
- Carlyle Group portfolio company Dynamic Precision Group acquired Paradigm Precision, and selected component fabrication and machining facilities from Unison Engine Components, a subsidiary of GE Aviation. Both Paradigm and Unison are leading manufacturers of complex machined components and fabricated assemblies for aircraft engines and other applications.
- Carlyle Group portfolio company Chromalloy acquired Trac Group, a tier 1 producer of high- and low pressure complex turbine components, including blades, segments and vanes for aircraft engines and industrial gas turbines.
- Permaswage, formerly a portfolio company of Bridgepoint Capital, and a leading designer and manufacturer of aerospace fluid fittings and related installation tooling to aircraft OEMs and major subsystem providers, was acquired by Precision Castparts Corp.
- Towerbrook Capital acquired AIM Aviation, one of the leading global providers of premium aircraft cabin interior monuments, galley structures, and related interior products to airlines and aircraft OEMs.
- Reinhold Industries, formerly a portfolio company of The Jordan Company and a leading provider of aircraft composite seatbacks and military composite components, was acquired by Heico Corp.
Founded in 1983, CSP is the recognized standard for business diligence advisory services in the aerospace, defense, and government sectors, and is a leading provider of strategic advisory services to corporate clients in our served markets. Over the past 25 years, the firm has supported more than 150 U.S. and international private equity and corporate clients in nearly 700 merger and acquisition transactions. CSP Equity Partners, a private investment affiliate of CSP Associates, is an investor in approximately 80 companies across our served markets. For more information, please visit www.cspassociates.com.
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