A&D Contractors Shift Focus to Defense
In an uncertain time for commercial aviation, major aerospace and defense contractors are shifting their focus to military business. Both Boeing and Raytheon Technologies in Q2 announced they are moving their headquarters to Northern Virginia, where they hold their primary defense operations. The move comes as the contractors seek to reinforce relationships with customers, federal regulators, and lawmakers. Northern Virginia has long been the center for military business, with a significant concentration of A&D contractors.1
Around 7,000 Commercial Aircraft Subject to Upgrades by Year-End
Following months of delay over safety concerns that 5G signals could interfere with aircraft’s radar altimeters, wireless carriers are now moving forward with the rollout of the 5G network. Aircraft with sensors susceptible to interference must be retrofitted by the end of the year, with other sensitive radar altimeters to be upgraded by July 2023. The FAA has identified about 7,000 commercial aircraft in the U.S. that would be subject to the deadline.2
JetBlue and Frontier Battling Over the Acquisition of Spirit
Spirit is contemplating proposed acquisitions by Frontier or JetBlue. Both companies see Spirit as an important acquisition for competition against the dominant airlines in the industry. Spirit has repeatedly declined JetBlue's offer over concerns regulators would block it. The company is reconsidering after they raised the termination fee $100 million higher than Frontier, providing a higher payout should regulators deny the acquisition. Discussions are expected to finalize by the end of June.3
SpaceX Overcomes Big Hurdle for Orbital Launches
In June, the FAA laid out a roadmap for SpaceX to continue its orbital launches after months of delays over environmental impact concerns. In an assessment by the FAA, the agency concluded the launches would not pose significant environmental impacts, although requiring the company to obtain a separate launch license for their Starship operations. The assessment is a big win for SpaceX, which plans to deploy satellites and other deep-space missions with the system.4
Largest Transactions Closed
- Telephonics Corporation
- TTM Technologies, Inc.
- RE2, Inc.
- Sarcos Technology and Robotics Corporation
- Allegient Defense, Inc.
- NowVertical Group Inc.
Other Financial Buyer Transactions Closed
- WYVERN Ltd.
- Venturous Capital, LLC
Other Strategic Buyer Transactions Closed
- Integral Industries, Inc.
- Enjet Aero, LLC
- Adept Fasteners, Inc.
- Wylie-Estill, Ltd.
- Pioneer Industries, Inc.
- Flight Support Group, Inc.
- Swift Aviation Services, Inc.
- Jackson Jet Center, LLC
This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.
EBIT - Earnings Before Interest and Taxes