Carlisle Interconnect Technologies’ Post

Honeywell International recently finalized a ~$2 billion deal to acquire aerospace and defense technology company CAES Systems from private-equity firm Advent International. This move comes as the aerospace and defense industry garners increased focus amidst escalating geopolitical tensions worldwide. This acquisition follows a previous $5 billion deal where Honeywell purchased Carrier Global's security business in 2023. The company has allocated $25 billion in upcoming years for mergers and acquisitions, among other strategic initiatives. For more insights on this latest development, refer to the attached WSJ article.

"Honeywell has agreed to buy aerospace and defense technology company CAES Systems for $1.9 billion from private equity firm Advent International, it said on Thursday, to give a boost to the manufacturing giant's aerospace technologies unit. The all-cash deal to buy CAES, which develops electronics such as antenna systems and communication networks for aerospace and defense companies, marks Honeywell's third acquisition so far this year. The latest deal comes at a time when top defense firms have seen orders surge in response to drawn out conflicts, including the Russian aggression against Ukraine and the ongoing war in Gaza. The CAES acquisition is expected to improve and expand Honeywell's defense technology solutions across land, sea, air and space." #finance #equipmentfinance #equipmentleasing #financialservices #corporatefinance #honeywell #mergersandacquisitions #defense https://lnkd.in/efFTbeBh

Honeywell, an American multinational conglomerate company that produces commercial and consumer products, engineering services and aerospace systems, agreed to acquire CAES, a provider of technology that pioneers the future and underpins many of the world’s most critical aerospace and defence missions, from Advent International, a private equity firm, for $1.9bn. "This acquisition further positions Honeywell at the forefront of the defense industry's most dynamic sectors and sets the tempo for continued growth across our aerospace business. With the integration of CAES' solutions and capabilities, we will fortify our existing defense offerings, while also expanding our capabilities in pivotal areas like RF, radar and sensing technologies, to ensure a market-leading position in areas that are critical for global security," Vimal Kapur, Honeywell Chairman and CEO. CAES is led by Mike Kahn, Sean Daily and David Young. Honeywell (led by Vimal Kapur, Greg Lewis, James Currier and Anne Madden) is advised by Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates (led by Allison Schneirov and Alexandra McCormack). Advent International (led by Shonnel Malani) is advised by Weil, Gotshal & Manges LLP (led by Jakub Wronski and Jonathan Wood). #MergersAcquisitionsDivestitures #PrivateEquity #Aerospace

This slightly aged DoD study is worth a read and should be required reading for the acquisition community. The report has 5 main recommendations, of which I see little near-term progress without a major attitude change: 1. Strenghtening merger oversight. Many of the mergers were the fault of the DoD in the 90's when Secretary Aspin pushed them in that direction. They often happen because of a perceived ability to compete better for larger contracts. And the Acquisition community attempts to reduce risk so much that they are unwilling to go with the smaller companies with a thinner track record. 2. Addressing IP Limitations. The government has to pay for it. Too often, in an effort to get something on contract with funds available, the DoD will just buy the product with out rights to it. Some OEMs hold onto data that they were paid to produce, and should be penalized for it, but that is not the real problem. 3. Increasing new entrants. This has to happen, but will never happen with the risk averse nature of the Acquisition community. They need to be good stewards of tax dollars, but that is not what often happens. 4. Increasing opportunities for small business. Increasing competition without helping the small business deal with onerous regulation, administrative requirements, and shedding a willingness to pay more for an OEM instead of financially helping the small business (like program financing) will not help. Increased competition that leads to cost shootouts is also not beneficial to the smalls. A large can absorb lower margins on scale, while a small cannot. 5. Implementing Sector-specific supply chain resiliency plans. How about paying multiple companies to reverse engineer obsolete parts without making it so painful? You could then expand the supply chain, help feed the small businesses, and reduce dependence on the OEMs. Just some thoughts. It is not an easy problem, but it is a DoD-created problem that requires PMs and COs to think more in terms of being good stewards of the frontline fighters more than of the taxpayers' money. #acquisition #DoD #defenseindustry

If you have been in the Defense Industry for any length of time you have seen a merger or two. I remember working on the brand rollout tactics after the L3 and Harris merger was approved to form L3Harris Technologies. We were trying to recommend a few ideas for the new company to unveil at the Paris Air Show. Aerojet Rocketdyne was also a client over the years that was working on some innovative technology. Now that L3Harris and Aerojet have merged they will have to develop a strategy that will compete with the primes that have launch capabilities. Should be an interesting time! #M&A #mergersandacquisitions #consolidation #defenseindustry https://lnkd.in/gMvhcvJm

#CEODesk 🖊️ AAR Corp's Strategically Altitudinous Acquisition in Aerospace MRO In an industry where meticulous precision meets technology, AAR’s acquisition of TRIUMPH Product Support marks a significant altitude adjustment for the aerospace and defense sector. A savvy maneuver anticipated to turbocharge the Maintenance, Repair, and Overhaul (MRO) market. An Analytical Ascent: ✈️ Maximizing Efficiencies: Valuations often reveal the underlying strategy; the effective purchase price multiple, at a svelte 11.7 times the projected FY2024 EBITDA — and an even trimmer 9.9 considering synergies — suggests not just a transaction, but a calculated integration. ✈️ Enhanced Capabilities: Specialized MRO services underpin Triumph’s appeal, straddling the commercial and defense divides. Their proprietary solutions — DER repairs and PMA parts — are set to dovetail smoothly with AAR’s expansive network, revolutionizing aerospace's aftermarket services. Market Maneuvers: 🛠️ Triumph's Trajectory: With a workforce north of 700 and head-turning projections ($280M revenue and $55M EBITDA for FY2024), Triumph’s impressive 20% EBITDA margin is an investor’s beacon in the competitive aerospace arena. 🛠️ Executive Horizon Scoping: AAR Corp's leadership heralds the deal as a testament to strategic harmonization; it’s not just an expansion, it’s an elevation — with promises of accelerated synergy-driven growth and innovation. High-Flying Investment Outlook: 🔍 Synergistic Skyways: This acquisition is more than conglomerate growth; it’s AAR capitalizing on harmonious strengths, portending a flurry of fresh market opportunities and fortified customer alliances. 🔍 Margin Momentum: A high-margin business addition bodes well for AAR’s bottom line, foreshadowing robust operational margins and a lift in earnings per share. 🔍 Strategic Territory Expansion: AAR’s territorial spread augments more than just reach; it’s a play for increased market shard dominance and penetration depth into key sectors. In aerospace's upper echelons, AAR's strategic grasp on Triumph Product Support is not just an acquisition but a statement of market momentum and evolutionary growth. It’s high time for investors and sector stalwarts to monitor the synergies that will soar from this alliance. Stay attuned to Market Unwinded for more analyses that throttle your strategic insights skywards. Read More: https://lnkd.in/gU9knyW4 #AARCORP #TriumphProductSupport #AerospaceMRO #StrategicAcquisition #InvestmentInsights #CEOLeadership #MarketAnalysis #IndustryGrowth #AeroDefense Fly High with Strategic Insights — Follow #MarketUnwinded.

Q: What is the acquisition lifecycle? A: This refers to the management structure by which defense systems are acquired, a process approved by the MDA.

When it comes to Aerospace, Defense & Security fields, numerous OEMs and prime contractors have tried and failed to acquire or merge, creating antitrust fault lines that will be difficult to cross. National interests in Europe have continued and likely will continue to thwart cross-border conglomeration, while the U.S. Defense Department appears to be firmly opposed to outsize contractor power. Besides, while grandiose couplings in commercial aerospace might appear less problematic from an industry perspective, aggrandizing moves are likely to raise strong antitrust concerns in the U.S. Justice Department. To find out more about the five big M&A deals that never happened in Aerospace, Defense & Security fields, follow the link for commentary from Stephen Perry, Oaklins’ Aerospace, Defense & Security (ADS) specialist!

All engineering design and digital manufacturing curriculum should include lectures on model based definition (MBD) at the same of detail as is spent on drawing creation.

REMAN post 1 bis, kindly proposed by Ron Giuntini and fully underwritten by Walter Stahel with thanks. Note that like-kind processes to remanufacturing are identified as 'overhaul', specifically for the aerospace sector, which encompasses the greatest global commercial spend on the reman process. Note that the term 'overhaul' is a legal term in the commercial aerospace sector, while 'reman' has no current oversight by any regulatory body, with the partial exception of the medical device sector. Do not ignore the military weapon system depots for reman. The US military is largest reman entity in the world, incurring $20-$30 billion/year on such activities. Note the largest employment of remanufacturing is supplied as like-kind exchange/swap part/component transactions. This is applied throughout all sectors sustaining commercial machines. So, the terms refurbished, rebuilt, reconditioned, reset and a slew of other terms are also employed to describe the reman process, but only the integrity of the reman provider and its warranty assuring that the process indeed meets the quality expectations of the marketplace. #REMAN #eraofR #CircularEconomy #terminologyclarification #CircularIndustrialEconmy #integrityoftheREMANprovider # Ron Giuntini @European Research Council (ERC)