mergers and acquisitions - scott-macon.com...table of contents section 1 market snapshot review of...

2© Copyright 2018 SCOTT-MACON, LTD.

We are pleased to present you with the October 2018 Edition of

the Scott-Macon Aerospace, Defense and Government Services

monthly newsletter! Our team strives to provide industry

professionals such as yourself with the critical market information

necessary to execute your strategic goals and initiatives. Please

let us know if you would like to discuss any of the emerging

trends presented in this review and how they can potentially

impact your firm.

Our team can help you with the following services:

Mergers and Acquisitions

- Sale of company

- Acquisition of target companies

Private Debt and Equity Financing

Dividend Recapitalization

We look forward to speaking to you soon!

Best,

Michael

Michael N. PapazisManaging Director

Aerospace, Defense & Government Services

Office: (212) 755-8200

Fax: (212) 583-9262

[email protected]

A note from SCOTT-MACON

Table of ContentsSection 1 Market Snapshot

Review of key valuation and deal trends analyzed on an Monthly and Last Twelve Month (LTM) basis

4

Section 2 Public Trading ComparablesList of operating metrics and valuation multiples for public companies in selected sub-segments of the Aerospace, Defense & Government Services (ADG) sectors

6

Section 3 M&A TransactionsList of relevant transactions with disclosed values which occurred in the last month segmented by Aerospace, Defense or Government Services

9

Section 4 Recent ContractsList of selected major government contracts that have been awarded in the last month

17

Section 5 Key Aerospace & Defense StatsReview of key trends in the aerospace and defense sectors

21

Section 6 About Scott-MaconBrief overview on Scott-Macon and their ADG investment banking practice

24

SECTION 1: MARKET SNAPSHOT


$ -9.6 %

# 1.4 %

# 6.1 %

$ -15.6 %

$ -11.5 %

$ -10.7 %

$ -8.7 %

$ -12.8 %

$ -9.7 %

$ -14.6 %

$ -8.2 %

$ -11.7 %

$ -6.5 %


Market Snapshot

Share Price Performance

Trading Valuation (TEV / LTM EBITDA)

M&A TransactionsM&A Transactions

Trading Valuation (TEV / LTM EBITDA)

Share Price Performance

Monthly as of October 2018 LTM as of October 2018

28 31

33 30

9 13

7074

0

10

20

30

40

50

60

70

80

90

31-Oct-17 31-Oct-18

Nu

mb

er o

f D

eals

Aerospace Defense Government Services

# 44.4 %

$ -9.1 %

# 10.7 %

275 257

309273

110

101

694

631

0

100

200

300

400

500

600

700

800

LTM-Oct-17 LTM-Oct-18

Nu

mb

er o

f D

eals

Aerospace Defense Government Services

# 15.3 %

# 9.7 %

# 3.2 %

# 2.6 %

74

84

94

104

114

124

134

144

Oct

-31-

2017

Nov

-30-

2017

Jan-

02-2

018

Feb

-01-

2018

Mar

-05-

2018

Apr

-04-

2018

May

-03-

2018

Jun-

04-2

018

Jul-0

3-20

18

Aug

-02-

2018

Aug

-31-

2018

Oct

-02-

2018

Oct

-31-

2018

S&P 500 SM AerospaceSM Government Services SM Defense

80

85

90

95

100

105

Sep

-28-

2018

Sep

-30-

2018

Oct

-02-

2018

Oct

-04-

2018

Oct

-06-

2018

Oct

-08-

2018

Oct

-10-

2018

Oct

-12-

2018

Oct

-14-

2018

Oct

-16-

2018

Oct

-18-

2018

Oct

-20-

2018

Oct

-22-

2018

Oct

-24-

2018

Oct

-26-

2018

Oct

-28-

2018

S&P 500 SM AerospaceSM Government Services SM Defense

10.50x

11.00x

11.50x

12.00x

12.50x

13.00x

13.50x

Sep

-28-

2018

Sep

-30-

2018

Oct

-02-

2018

Oct

-04-

2018

Oct

-06-

2018

Oct

-08-

2018

Oct

-10-

2018

Oct

-12-

2018

Oct

-14-

2018

Oct

-16-

2018

Oct

-18-

2018

Oct

-20-

2018

Oct

-22-

2018

Oct

-24-

2018

Oct

-26-

2018

Oct

-28-

2018

SM Aerospace SM Government Services SM Defense

8.50x

9.50x

10.50x

11.50x

12.50x

13.50x

14.50xO

ct-3

1-20

17

Nov

-30-

2017

Dec

-31-

2017

Jan-

31-2

018

Feb

-28-

2018

Mar

-31-

2018

Apr

-30-

2018

May

-31-

2018

Jun-

30-2

018

Jul-3

1-20

18

Aug

-31-

2018

Sep

-30-

2018

Oct

-31-

2018

SM Aerospace SM Government Services SM Defense

SECTION 2: PUBLIC COMPARABLES



Public Comparables

Aerospace Public Comparables*

Government Services Public Comparables*

% of 52 Market Total Enterprise TEV / % Change TEV / LTM EBITDA TEV / % Change TEV / LTM Rev. Enterprise Value / EBITDA

Aerospace OEMs Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

Airbus SE $110.59 87.9% $85,731.9 $87,412.8 11.9 x -25.6% -57.8% 1.1 x -10.5% 8.1%

Boeing Company 354.86 90.0 201,519.8 203,485.8 16.1 -2.4 17.2 2.1 -9.2 24.1

Bombardier Inc. 2.43 57.2 5,780.6 14,175.4 16.8 -15.0 -24.9 0.8 -15.6 1.8

Embraer S.A. 5.61 74.7 4,096.1 5,578.1 NM 3.6 NM 1.2 5.9 41.7

Median 81.3% $45,756.3 $50,794.1 16.1 x -2.4% 45.7% 1.2 x -4.2% 23.0%

Mean 77.5% $74,282.1 $77,663.0 15.0 x -14.3% 35.0% 1.3 x -7.1% 19.4%


Aerospace Systems / Equipment Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

AAR Corp. $47.58 92.4% $1,634.6 $1,821.0 13.8 x -0.6% 26.6% 1.0 x 2.6 23.3%

AMETEK, Inc. 67.08 81.9 15,555.7 17,143.9 14.2 -14.0 -15.6 3.7 -14.6 -15.0

Astronics Corporation 29.16 67.8 885.9 1,140.6 13.7 -22.6 2.9 1.6 -22.6 -14.3

CAE Inc. 17.66 82.5 4,708.2 5,381.0 12.4 -10.3 -1.3 2.4 -9.0 -4.2

Crane Co. 87.04 84.8 5,187.4 5,907.6 10.3 -16.4 -3.4 1.8 -15.9 -1.5

Esterline Technologies Corporation 117.36 98.6 3,456.6 3,852.8 13.9 25.3 28.4 1.9 26.4 14.0

HEICO Corporation 83.83 89.1 9,774.6 10,561.4 NM -10.0 15.9 6.1 -9.5 19.7

Héroux-Devtek Inc. 9.48 74.4 344.3 369.1 9.0 -18.4 -20.9 1.3 -16.9 -19.6

Meggitt PLC 6.76 90.8 5,219.8 6,652.0 11.6 -5.1 22.2 2.6 -5.6 4.7

Moog Inc. 71.55 76.2 2,616.8 3,318.8 9.8 -13.1 -14.8 1.2 -12.7 -18.0

MTU Aero Engines AG 213.24 94.8 11,010.6 12,157.3 13.9 -2.7 26.0 2.1 -3.9 42.1

Textron Inc. 53.63 73.6 13,030.0 15,746.0 10.4 -22.5 -8.4 1.1 -24.1 -9.3

TransDigm Group Incorporated 330.25 87.4 17,380.6 28,419.3 16.2 -7.2 7.1 7.7 -6.9 8.9

Woodward, Inc. 73.64 82.5 4,543.0 5,813.8 15.2 -7.1 -2.1 2.6 -6.1 2.4

Median 83.6% $4,947.8 $5,860.7 13.7 x -0.7% 19.7% 2.0 x -7.7% 5.9%

Mean 84.0% $6,810.6 $8,448.9 12.6 x -9.4% -2.5% 2.7 x -9.3% 3.0%

% of 52 Market Total Enterprise TEV / % Change TEV / LTM EBITDA TEV / % Change TEV / LTM Rev. Enterprise Value / EBITDA as OF

Aerospace Structures Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

CPI Aerostructures, Inc. $6.80 57.9% $79.7 $114.6 10.6 x 4.6% 5.8% 1.4 x 2.7% -0.6%

Ducommun Incorporated 37.16 89.8 423.7 651.3 11.6 -6.1 12.4 1.1 -4.8 14.6

Hexcel Corporation 58.52 79.7 5,038.3 5,981.1 12.1 -13.9 -11.6 2.8 -13.2 -11.8

Kaman Corporation 63.52 84.6 1,778.3 2,074.9 12.3 -4.2 2.8 1.1 -2.6 2.2

Latécoère S.A. 3.87 56.9 366.1 433.1 NM -12.8 NM 0.6 -12.0 -25.9

Magellan Aerospace Corporation 14.45 86.8 841.2 885.6 8.0 4.4 -2.2 1.2 3.3 -3.7

Senior plc 3.48 81.1 1,455.4 1,645.6 10.1 -11.3 -17.8 1.2 -12.9 -12.3

Spirit AeroSystems Holdings, Inc. 84.01 79.9 8,947.0 10,341.0 9.8 -7.3 -26.3 1.5 -8.0 1.3

Triumph Group, Inc. 18.25 52.8 909.1 2,396.4 12.9 -9.5 NA 0.7 -8.7 -9.4

Median 79.9% $909.1 $1,645.6 11.1 x -6.6% -6.9% 1.2 x 3.1% -3.7%

Mean 74.4% $2,204.3 $2,724.9 10.9 x -6.3% -7.8% 1.3 x -7.1% -5.7%

Total Aerospace Median 82.5% $4,543.0 $5,578.1 12.2 x -10.2% 6.2% 1.4 x -8.8% -4.8%

Total Aerospace Mean 79.8% $15,270.9 $16,794.8 12.4 x -9.3% -0.4% 2.0 x -8.6% 2.4%


Government Services Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

Booz Allen Hamilton Holding Corp. $49.54 94.3% $7,051.7 $8,493.1 13.4 x -4.4% 5.2% 1.3 x -3.7% 9.7%

CACI International Inc 178.46 88.9 4,413.7 5,409.3 13.3 -2.4 3.3 1.2 -1.6 12.4

CGI Group Inc. 61.84 93.2 17,235.2 18,551.1 12.8 -2.3 10.6 2.2 -2.8 10.4

Cyient Limited 8.38 69.9 947.2 789.1 11.1 -27.9 -1.8 1.4 -30.0 -5.6

Engility Holdings, Inc. 31.03 80.5 1,147.1 2,041.5 12.1 -2.9 4.0 1.1 -5.9 -3.9

ICF International, Inc. 73.64 89.5 1,388.9 1,626.2 14.6 -2.1 32.2 1.3 1.2 22.0

KeyW Holding Corp. 7.83 79.6 387.4 664.3 15.6 -5.8 -45.4 1.3 -7.0 -29.5

Leidos Holdings, Inc. 64.78 89.6 9,701.5 12,244.5 11.8 -7.4 -8.2 1.2 -6.3 -6.2

ManTech International Corp. 57.28 84.1 2,267.1 2,289.4 15.3 -9.4 13.9 1.2 -7.3 19.8

MAXIMUS, Inc. 64.97 89.4 4,173.6 3,928.3 10.7 -0.1 -2.3 1.6 2.1 -7.1

Navigant Consulting, Inc. 21.60 83.6 972.1 1,108.0 8.9 -5.6 18.8 1.2 -3.7 14.9

QinetiQ Group plc 3.54 92.9 1,984.0 1,639.2 8.5 -3.6 20.9 1.5 -4.7 5.2

Science Applications International Corp. 69.51 74.5 2,953.5 3,855.5 11.7 -10.9 -13.3 0.8 -9.4 -10.9

Serco Group plc 1.23 81.7 1,336.5 1,656.8 14.2 -1.4 -6.0 0.5 -4.6 -4.1

Vectrus, Inc. 26.80 64.6 301.4 335.9 7.2 -12.8 -11.4 0.3 -11.7 -14.6

VSE Corp. 31.36 56.0 341.2 534.5 7.0 -4.6 -22.4 0.7 -3.4 -20.6

Median 83.8% $1,686.4 $1,849.1 12.0 x -8.8% 3.1% 1.2 x -7.1% 11.8%

Mean 82.0% $3,537.6 $4,072.9 11.8 x -6.7% 4.6% 1.2 x -6.9% -0.6%


Engineering & Construction Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

AECOM $29.14 73.0% $4,685.1 $7,946.4 9.5 x -6.6% 3.0 0.4 x -6.9% -19.0%

Fluor Corp. 43.86 70.6 6,167.5 6,181.9 8.0 -24.5 -22.0 0.3 -25.1 5.6

Jacobs Engineering Group Inc. 75.09 95.9 10,655.6 12,264.4 13.0 -1.6 26.7 0.9 -2.2 38.0

KBR, Inc. 19.78 89.5 2,786.6 3,377.6 9.3 -15.2 -42.1 0.7 -11.1 20.6

Tetra Tech, Inc. 66.04 91.5 3,654.2 3,878.1 15.6 -3.1 13.8 1.8 -2.9 21.4

Median 89.5% $4,685.1 $6,181.9 9.5 x -13.4% -7.4% 0.7 x -10.1% 20.6%

Mean 84.1% $5,589.8 $6,729.7 11.1 x -9.2% -6.9% 0.8 x -6.5% 17.3%

Total Government Services Median 84.1% $2,786.6 $3,377.6 11.8 x -9.7% 3.5% 1.2 x 17.3% 13.9%

Total Government Services Mean 82.5% $4,026.2 $4,705.5 11.6 x -7.3% 1.7% 1.1 x -6.9% 2.2%



Public Comparables (Continued)

Defense Public Comparables*


Defense Primes Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

BAE Systems plc $6.71 77.3% $21,415.2 $23,893.9 9.6 x -15.1% -7.1% 1.1 x -14.2% -4.2%

Boeing Company 354.86 90.0 201,519.8 203,485.8 16.1 -2.4 17.2 2.1 x -9.2 24.1

General Dynamics Corporation 172.58 75.0 51,109.5 63,180.5 12.9 -16.7 1.4 1.9 -17.6 -8.1

Leonardo S.p.a. 10.85 63.6 6,235.3 10,410.7 6.5 -4.7 -3.9 0.8 -5.0 -23.2

Lockheed Martin Corporation 293.85 81.0 83,578.5 97,466.5 12.8 -16.3 -16.0 1.8 -16.3 -10.1

Northrop Grumman Corporation 261.95 72.6 45,479.7 59,156.7 12.6 -25.3 -15.3 2.1 -18.9 -5.6

Raytheon Company 175.04 76.2 49,812.4 53,352.4 14.4 -8.8 -2.1 2.0 -15.2 -9.6

Thales S.A. 127.90 90.8 27,184.7 24,805.6 10.5 -8.3 9.1 1.4 -8.4 22.7

Median 76.7% $47,646.0 $56,254.5 12.7 x -17.7% -4.2% 1.8 x -16.6% -1.1%

Mean 78.3% $60,791.9 $66,969.0 11.9 x -12.9% -2.6% 1.6 x -13.6% -2.5%


Defense Systems Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

Aerojet Rocketdyne Holdings, Inc. $35.32 93.7% $2,670.2 $2,686.1 13.0 x 2.5% -7.9% 1.4 x 4.7% -1.7%

AeroVironment, Inc. $89.97 74.2% $2,123.0 $1,833.9 NM -22.2% -7.2% 5.8 x -20.2% 62.6

Cobham plc 1.37 76.6 3,268.4 3,338.6 10.3 -7.6 NA 1.3 -8.6 -27.6

Cubic Corporation 65.61 84.8 1,788.0 1,920.9 NM NM NM 1.2 -8.7 5.2

Curtiss-Wright Corporation 109.46 76.3 4,814.2 5,382.0 11.2 -18.9 -15.1 2.3 -19.5 -11.3

FLIR Systems, Inc. 46.31 72.5 6,406.9 6,235.2 15.1 -26.1 -12.1 3.4 -26.1 -7.4

Huntington Ingalls Industries, Inc. 218.48 79.0 9,464.2 10,347.2 9.1 -13.6 -17.4 1.3 -14.0 -15.1

Kongsberg Gruppen ASA 16.45 67.8 1,966.6 2,011.2 12.5 -17.1 -31.9 1.2 -11.8 -10.6

L3 Technologies, Inc. 189.47 84.7 14,910.8 17,830.8 12.8 -11.5 0.7 1.8 -9.5 11.3

Rockwell Collins, Inc. 128.02 89.8 21,042.1 27,611.1 15.3 -6.9 -16.4 3.2 -7.3 -23.2

Safran SA 129.09 93.3 56,274.7 61,183.6 16.1 -5.1 63.9 2.9 -4.9 32.8

Textron Inc. 53.63 73.6 13,030.0 15,746.0 10.4 -22.5 -8.4 1.1 -24.1 -9.3

Median 77.8% $5,610.6 $5,808.6 12.6 x -10.7% -4.4% 1.6 x -10.6% -9.1%

Mean 80.5% $11,479.9 $13,010.6 12.6 x -13.2% -10.2% 2.2 x -15.4% 2.5%


Defense Electronics / Equipment Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

AMETEK, Inc. $67.08 81.9% $15,555.7 $17,143.9 14.2 x -14.0% -15.6% 3.7 x -14.6% -15.0%

Chemring Group plc 2.33 76.2 651.3 759.2 7.5 -13.3 3.8 1.1 -15.0 4.0

Comtech Telecommunications Corp. 27.92 75.6 666.0 790.4 11.3 -20.1 6.5 1.4 -18.7 15.3

Crane Co. 87.04 84.8 5,187.4 5,907.6 10.3 -16.4 -3.4 1.8 -15.9 -1.5

Ducommun Incorporated 37.16 89.8 423.7 651.3 11.6 -6.1 12.4 1.1 -4.8 14.6

Elbit Systems Ltd. 119.63 84.1 5,114.4 5,577.9 13.8 -3.2 -15.3 1.6 -3.2 -20.4

Harris Corporation 148.71 84.7 17,497.1 21,201.1 14.5 -11.2 -0.2 3.4 -10.9 -2.1

Héroux-Devtek Inc. 9.48 74.4 344.3 369.1 9.0 -18.4 -20.9 1.3 -16.9 -19.6

Kratos Defense & Security Solutions, Inc. 12.53 83.9 1,299.8 1,410.8 NM -14.2 -63.0 1.8 -14.8 -16.7

Meggitt PLC 6.76 90.8 5,219.8 6,652.0 11.6 -5.1 22.2 2.6 -5.6 4.7

Mercury Systems, Inc. 46.86 81.8 2,268.6 2,435.7 NM -13.2 -10.5 4.9 -11.2 -12.2

Moog Inc. 71.55 76.2 2,616.8 3,318.8 9.8 -13.1 -14.8 1.2 -12.7 -18.0

OSI Systems, Inc. 69.16 75.6 1,255.5 1,588.3 10.4 -0.5 -16.3 1.4 -4.0 -25.8

Teledyne Technologies Incorporated 221.28 88.2 7,983.6 8,694.8 16.5 -12.0 -3.3 3.0 -12.1 -1.8

Ultra Electronics Holdings plc 18.34 76.4 1,317.3 1,534.3 9.5 -9.2 -25.6 1.6 -9.7 -25.7

Viasat, Inc. 63.76 79.4 3,796.9 4,869.8 NM -0.2 NA 2.9 1.2 3.9

Woodward, Inc. 73.64 82.5 4,543.0 5,813.8 15.2 -7.1 -2.1 2.6 -6.1 2.4

Median 81.9% $2,616.8 $3,318.8 11.5 x -7.3% -7.6% 1.8 x -14.5% -13.9%

Mean 81.5% $4,455.4 $5,218.8 11.8 x -10.8% -9.9% 2.2 x -10.8% -8.0%


Homeland Security Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year

Elbit Systems Ltd. 119.63 84.1 5,114.4 5,577.9 13.8 -3.2 -15.3 1.6 -3.2 -20.4

MSA Safety Incorporated 104.44 95.8 4,017.2 4,241.2 15.0 -7.1 -4.4 3.2 -4.3 6.8

OSI Systems, Inc. 69.16 75.6 1,255.5 1,588.3 10.4 -0.5 -16.3 1.4 -4.0 -25.8

American Outdoor Brands Corporation 13.68 85.8 744.0 913.4 9.6 -9.9 NM 1.5 -6.4 25.8

Smiths Group plc 17.83 77.2 7,058.5 8,218.1 10.8 -5.7 -3.8 2.0 -6.8 -8.6

Median 84.1% $4,017.2 $4,241.2 10.8 x -5.7% -13.1% 1.6 x -3.2% -20.4%

Mean 83.7% $3,637.9 $4,107.8 11.9 x -5.4% -1.3% 1.9 x -6.1% -5.8%

Total Defense Median 80.2% $5,114.4 $5,695.9 11.6 x -15.8% -8.5% 1.8 x -12.7% -11.0%

Total Defense Mean 80.9% $17,095.8 $19,074.7 12.1 x -11.3% -7.2% 2.1 x -12.2% -3.9%

SECTION 3: M&A TRANSACTIONS



M&A Transactions with Disclosed Values - LTM as of October 2018

Continued on Next Page

xx xx xx xxx EV / LTM

Announced Closed Buyer Target Target Sector EV Rev EBITDA

10/30/2018 Pending GMR Hyderabad International Airport

Limited

Hyderabad Menzies Air Cargo Pvt Ltd. Aerospace $16 NA NA

10/26/2018 Pending SK Telecom Co., Ltd. SK infosec Co., Ltd. Defense $313 1.7 x 9.6 x

10/24/2018 Pending Rubis KenolKobil Plc Aerospace $406 NA 10.7 x

10/22/2018 Pending QinetiQ Group plc Inzpire Group Limited Defense $31 NA NA

10/22/2018 Pending Hanwha Aerospace Co., Ltd. Aviation Business of Hanwha Corporation Aerospace $147 1.1 x NA

10/19/2018 Pending Guangzhou Shipyard International

Company Limited

Guangzhou Wenchong Dockyard Co., Ltd. Aerospace $72 0.8 x NA

10/14/2018 Pending Harris Corporation L3 Technologies, Inc. Defense $19,216 1.9 x 13.7 x

10/11/2018 10/17/2018 SolarEdge Technologies, Inc. Kokam Co., Ltd. Defense $134 3.6 x NA

10/11/2018 10/11/2018 Quest Solution, Inc. HTS Image Processing, Inc. Defense $6 NA NA

10/10/2018 Pending TransDigm Group Incorporated Esterline Technologies Corporation Defense $4,074 2.0 x 14.7 x

10/10/2018 Pending Thoma Bravo, LLC Imperva, Inc. Defense $1,732 5.0 x NA

10/4/2018 Pending Vaisala Oyj Leosphere, Inc. Aerospace $44 0.1 x 0.7 x

10/4/2018 Pending Smiths Group plc United Flexible, Inc. Aerospace $345 NA NA

10/2/2018 Pending Air Transport Services Group, Inc. Omni Air International, LLC Government

Services

$845 NA 5.8 x

10/2/2018 10/2/2018 Civil Aviation Group SRL Air Moldova, S.A. Aerospace $71 NA NA

10/1/2018 10/1/2018 Extant Components Group Holdings,

Inc.

All Assets and Technical Data Rights of NavCom

Defense Electronics, Inc.

Defense $27 2.1 x NA

10/1/2018 9/27/2018 AMMO, Inc. SW Kenetics, Inc. Government

Services

$7 NA NA

9/25/2018 Pending Universal mCloud Corp. Ascent Aerosystems LLC Defense $7 NA NA

9/25/2018 9/25/2018 Guangdong Shenglu

Telecommunication Tech. Co., Ltd.

Chengdu Chuangxinda Microwave Electronics Co.,

Ltd.


9/18/2018 Pending Ontic Engineering and Manufacturing,

Inc.

Firstmark Corporation Defense $97 NA NA

9/18/2018 Pending Prosegur SIS Command Security Corporation Aerospace $46 NA 17.8 x

9/13/2018 Pending Vision Technologies Aerospace

Incorporated

MRA Systems, LLC Aerospace $630 1.2 x 10.0 x

9/12/2018 9/12/2018 HEXPOL AB Kirkhill-TA Co. Defense $49 1.1 x NA

9/10/2018 Pending Science Applications International

Corporation

Engility Holdings, Inc. Defense $2,450 1.3 x 13.7 x



M&A Transactions with Disclosed Values - LTM as of October 2018 (Continued)




9/6/2018 Pending Zhejiang Wazam New Material Co.,

Ltd.

Yangzhou Maxi-CUBE Tong Composite Co., Ltd. Aerospace $6 0.4 x 6.3 x

9/6/2018 Pending Polaris Industries Inc. WSI Industries, Inc. Defense $22 0.6 x 8.7 x

9/5/2018 9/5/2018 Ideagen plc Extensible CAD Technologies, Inc. Defense $7 NA 35.0 x

8/31/2018 8/31/2018 NorthEdge Capital LLP Orbis Protect Limited Defense $18 0.5 x NA

8/22/2018 Pending Mahindra Engineering Services Inter-Informatics spol. s r.o. Defense $6 0.5 x NA

8/17/2018 10/17/2018 Shearwater Group PLC Brookcourt Solutions Limited Aerospace $40 1.4 x 15.1 x

8/9/2018 Pending Rafael Advanced Defense Systems

Ltd.

Aeronautics Ltd. Defense $124 1.2 x 12.3 x

8/9/2018 Pending Cyber Security 1 AB Infonet Bilgi Teknolojileri Ticaret Anonim Sirketi Defense $10 0.4 x 6.1 x

8/8/2018 8/31/2018 One Stop Systems, Inc. Concept Development, Inc. Defense $6 NA NA

7/31/2018 Pending Mission Ready Solutions Inc. Unifire, Inc. Defense $9 NA NA

7/31/2018 7/31/2018 Themis Computer, Inc. Germane Systems LC Government

Services

$45 NA 10.0 x

7/26/2018 8/9/2018 Imperva, Inc. Prevoty, Inc. Defense $141 NA NA

7/25/2018 Pending AGC Inc. Nelco Products Inc./ Neltec Inc./ Neltec SA/ Nelco

Products Pte. Ltd.

Aerospace $145 NA NA

7/16/2018 8/14/2018 Orange Business Services SAS Basefarm AS Defense $410 3.5 x NA

7/13/2018 7/13/2018 TransDigm Group Incorporated SKANDIA, Inc. Aerospace $84 3.2 x NA

7/10/2018 7/9/2018 Mimecast Limited Ataata, Inc. Defense $24 NA NA

7/10/2018 10/24/2018 Aptiv PLC Winchester Interconnect Defense $650 2.6 x NA

7/10/2018 7/10/2018 First Israel Mezzanine Investors Ltd. Bird Aerosystems Ltd Aerospace $80 NA NA

7/6/2018 Pending Shenzhen SDG Information Co., Ltd. Beijing Senfetech Corporation Aerospace $58 6.5 x NA

7/6/2018 7/5/2018 Hickok Incorporated CAD Enterprises, Inc. Aerospace $21 NA NA

7/5/2018 Pending The Boeing Company Commercial Aircraft Operations of Embraer Defense $4,750 NA NA

7/2/2018 7/2/2018 L3 Technologies, Inc. Applied Defense Solutions, Inc. Aerospace $50 NA NA

6/29/2018 6/29/2018 China Aviation Oil Navires Aviation Limited Defense $8 NA NA

6/22/2018 Pending Eastern Pioneer International Aviation

Development Co., Ltd.

Shandong Hairuo General Aviation Co., Ltd. Government

Services

$13 NA NA







6/21/2018 9/12/2018 EnviroStar, Inc. Scott Equipment, Inc. Aerospace $15 NA NA

6/21/2018 9/13/2018 Goshawk Aviation Limited SKY Aviation Leasing International Limited Government

Services

$2,800 NA NA

6/19/2018 Pending Cerberus Capital Management, L.P. WFS Global SAS Defense $1,389 1.0 x NA

6/18/2018 7/2/2018 F-Secure Oyj MWR InfoSecurity Limited Defense $139 4.9 x NA

6/8/2018 7/23/2018 Gardner Aerospace Holdings Limited Northern Aerospace Limited Aerospace $59 NA NA

6/8/2018 Pending EchoStar Corporation Inmarsat Plc Defense $5,879 4.1 x 8.4 x

6/7/2018 6/7/2018 Sichuan Changhong Electric Co.,Ltd. Lingbayi Electronic Group Co., Ltd. Defense $270 2.8 x NA

6/4/2018 6/4/2018 TT Electronics plc Precision, Inc. Aerospace $28 1.3 x NA

5/23/2018 7/12/2018 Zhejiang Tiancheng Controls Co., Ltd. Acro Aircraft Seating Ltd. Aerospace $75 NA NA

5/23/2018 7/2/2018 BBA Aviation plc EPIC Aviation, LLC Defense $88 NA NA

5/18/2018 5/17/2018 PCL EMOSS Mobile Systems B.V. Government

Services

$17 2.4 x NA

5/8/2018 5/8/2018 COMSYS Holdings Corporation SYSKEN Corporation Government

Services

$89 0.3 x 7.4 x

5/8/2018 5/7/2018 Trinity Gate Limited Grandshores Technology Group Limited Government

Services

$88 2.1 x 16.7 x

5/4/2018 5/3/2018 Axon Enterprise, Inc. VIEVU LLC Defense $13 NA NA

5/3/2018 Pending Tata Advanced Systems Limited Defense Business of Tata Motors Limited Aerospace $277 NA NA

5/3/2018 Pending Tata Advanced Systems Limited TAL Manufacturing Solutions Limited Aerospace $94 1.9 x 7.1 x

5/3/2018 7/10/2018 Aviation Links Ltd. Pegasus Tourism Holdings Ltd Aerospace $20 NA NA

5/2/2018 8/20/2018 M.T.I Wireless Edge Ltd. MTI Computers and Software Services Defense $17 0.5 x 6.7 x

5/2/2018 Pending Spirit AeroSystems Holdings, Inc. S.R.I.F N.V. Defense $650 NA NA

5/1/2018 4/30/2018 MSC Industrial Direct Co., Inc. All Integrated Solutions Aerospace $86 1.3 x NA

5/1/2018 6/29/2018 American Industrial Partners L-3 Communications Vertex Aerospace LLC and

Related Assets

Defense $540 NA NA

5/1/2018 4/30/2018 Tyler Technologies, Inc. Sage Data Security, LLC Aerospace $12 NA NA

4/26/2018 9/23/2018 Inypsa Informes y Proyectos, S.A. Carbures Europe, S.A. Defense $126 1.4 x NA







4/24/2018 10/18/2018 QinetiQ Group plc E.I.S. Aircraft Operations of E.I.S. Group Aerospace $86 3.5 x 13.0 x

4/24/2018 4/24/2018 LDC Precision Micro Ltd. Aerospace $31 1.5 x NA

4/24/2018 6/26/2018 CS Communication & Systemes SA Novidy's SAS Aerospace $44 1.1 x NA

4/23/2018 10/11/2018 Saber Serviços Educacionais S.A. Somos Educação S.A. Aerospace $2,161 3.9 x 18.2 x

4/19/2018 5/31/2018 Valiant Integrated Services LLC Cubic Global Defense, Inc. and Omega Training

Group, Inc.


4/18/2018 4/30/2018 Tyler Technologies, Inc. Socrata, Inc. Aerospace $150 6.0 x NA

4/10/2018 10/1/2018 Tenneco Inc. Federal-Mogul LLC Government

Services

$5,400 0.7 x 7.2 x

4/10/2018 5/2/2018 Eagle Enterprises, Inc. Hawker Pacific Airservices Limited Defense $250 NA NA

4/9/2018 6/26/2018 Cognosec AB Advantio Limited Aerospace $11 3.0 x 17.1 x

4/2/2018 4/2/2018 Skyline Domain Sdn Bhd Subang SkyPark Sdn Bhd Defense $19 NA NA

3/29/2018 Pending Tata Advanced Systems Limited Strategic Engineering Division of Tata Power Defense $343 4.2 x NA

3/29/2018 8/7/2018 UMS Holdings Limited Starke Singapore Pte Ltd Aerospace $8 0.4 x NA

3/28/2018 9/9/2018 OJSC "Concern Kalashnikov" Molniya Research and Production Association Joint

Stock Company

Government

Services

$29 NA NA

3/26/2018 2/28/2018 CSG Systems International, Inc. Business Ink, Co. Aerospace $70 NA NA

3/23/2018 4/24/2018 Pacific Energy Limited Contract Power Australia Pty Ltd Aerospace $70 NA NA

3/23/2018 Pending Hainan Airlines Holding Co.,Ltd. 100% of Hainan Sky Plumage and 60.78% of HNA

Aviation Technic and 59.93% of HNA Aviation

Aerospace $968 NA NA

3/22/2018 4/11/2018 Elbit Systems Ltd. Universal Avionics Systems Corporation Defense $120 NA NA

3/20/2018 8/29/2018 Ryanair Holdings plc Laudamotion GmbH Government

Services

$82 NA NA

3/19/2018 5/4/2018 Wärtsilä Oyj Abp Transas Marine Defense $259 1.5 x NA

3/19/2018 4/24/2018 TransDigm Group Incorporated Extant Components Group Holdings, Inc. Aerospace $525 NA NA

3/15/2018 3/15/2018 TransDigm Group Incorporated Kirkhill-TA Co. Aerospace $50 0.6 x NA

3/14/2018 Pending Addsino Co., Ltd. Aerospace Kaiyuan Technology Co., Ltd. Aerospace $22 1.0 x NA

3/14/2018 Pending Addsino Co., Ltd. Nanjing Unary Information Technology Co., Ltd. Aerospace $43 4.6 x NA







3/13/2018 5/7/2018 TCTM Financial FS LLC Wellman Dynamics Corporation Government

Services

$21 NA NA

3/12/2018 3/12/2018 Virtusa Corporation eTouch Systems Corp. Government

Services

$115 1.3 x 9.1 x

3/12/2018 4/4/2018 Patricia Industries Sarnova, Inc. Defense $903 1.6 x NA

3/11/2018 Pending Elbit Systems Ltd. IMI Systems Ltd. Aerospace $552 NA NA

3/8/2018 Pending Guangxi Guidong Electric Power Co.,

LTD.

Guangxi Guicheng Energy Co., Ltd. Government

Services

$8 NA NA

3/6/2018 3/12/2018 Falanx Group Limited First Base Technologies LLP Defense $4 1.8 x 5.3 x

2/28/2018 6/11/2018 Securitas Electronic Security Inc. Kratos Public Safety & Security Solutions, Inc. Government

Services

$69 0.5 x 15.0 x

2/27/2018 7/2/2018 Héroux-Devtek Inc. Beaver Aerospace & Defense, Inc. Defense $24 0.8 x NA

2/26/2018 5/2/2018 Rakon Limited Centum Rakon India Private Limited Aerospace $11 0.9 x 7.1 x

2/23/2018 4/25/2018 KBRwyle Technology Solutions, LLC SGT, Inc. Government

Services

$355 NA NA

2/23/2018 2/23/2018 St. Cloud Capital, LLC Pipeworks Inc Aerospace $18 1.4 x NA

2/21/2018 2/28/2018 Exchange Income Corporation CANLink Global Inc. Defense $43 NA 7.2 x

2/8/2018 7/31/2018 First Israel Mezzanine Investors Ltd. Aitech Defense Systems, Inc. Defense $30 NA NA

2/6/2018 2/28/2018 Proofpoint, Inc. Wombat Security Technologies, Inc. Defense $225 NA NA

2/1/2018 1/19/2018 AMETEK, Inc. FMH Aerospace Corp. Defense $235 4.7 x NA

1/31/2018 4/2/2018 On Assignment, Inc. ECS Federal, LLC Aerospace $775 NA NA

1/28/2018 Pending Afcon Holdings Ltd. DM Aerospace $16 NA NA

1/26/2018 3/16/2018 Koltsovo Airport Public Stock Company JSC Petropavlovsk-Kamchatski Aerospace $122 NA NA

1/20/2018 1/31/2018 Oil and Natural Gas Corporation

Limited

Hindustan Petroleum Corporation Limited Aerospace $13,957 0.5 x 6.8 x

1/18/2018 2/15/2018 Compass Diversified Holdings LLC Foam Fabricators, Inc Defense $248 2.0 x 8.3 x

1/17/2018 1/17/2018 Onyx Scientific Limited Pisgah Labs, Inc. Government

Services

$10 NA 8.5 x

1/12/2018 4/26/2018 Melrose Industries PLC GKN Limited Defense $12,332 0.9 x 9.3 x

1/9/2018 1/9/2018 NTC Group, Inc. Tenax Aerospace, LLC Aerospace $220 NA NA







1/9/2018 12/21/2017 Hammond, Kennedy, Whitney &

Company Inc.

GCR Inc. Aerospace $124 NA NA

1/3/2018 4/20/2018 Hong Kong Hangxin Aviation

Technology Co., Ltd.

Magnetic MRO AS Aerospace $52 NA NA

1/3/2018 12/28/2017 UAMCO., Ltd. STX Engine Co.,Ltd. Aerospace $442 1.0 x 23.7 x

1/3/2018 Pending Shanghai Hangrong New Energy


Gansu Shanghang Electrical Maintenance Co., Ltd. Defense $54 NA NA

1/2/2018 5/22/2018 Coolisys Technologies, Inc. Enertec Systems 2001 Ltd. Aerospace $9 NA NA

12/27/2017 1/25/2018 Catea Co., Ltd Pantom Co., Ltd. Aerospace $7 0.4 x NA

12/21/2017 2/1/2018 Mercury Systems, Inc. Themis Computer, Inc. Defense $180 NA NA

12/21/2017 1/26/2018 Perusa Partners SCHROTH Safety Products GmbH Defense $61 NA NA

12/21/2017 12/15/2017 Mistras Group, Inc. West Penn Non-Destructive Testing, LLC Government

Services

$74 NA NA

12/20/2017 1/31/2018 EM-Tech.CO., LTD. BSL Co., Ltd. Aerospace $11 NA NA

12/18/2017 12/15/2017 ConvergeOne, Inc. AOS, a ConvergeOne Company Aerospace $66 NA NA

12/18/2017 12/18/2017 Bain Capital Private Equity, LP Trans Maldivian Airways Defense $500 4.4 x NA

12/13/2017 Pending China Aviation Planning and Design

Institute Co., Ltd.

China Aviation Industry Renewable Energy

Corporation

Aerospace $90 2.7 x NA

12/13/2017 1/9/2018 Sdiptech AB Aviolinx Communication and Services AB Aerospace $5 2.2 x NA

12/13/2017 1/31/2018 LBO France Crouzet Automatismes SAS Aerospace $235 1.5 x NA

12/11/2017 12/12/2017 Nanjing Dingkong Electrical and

Mechanical Technology Co., Ltd.

Yangzhou Shuguang Photoelectric Self-controlled

Co., Ltd.

Aerospace $72 6.9 x NA

12/8/2017 12/20/2017 Soltworks Co., Ltd. Kat Co., Ltd. Defense $13 0.6 x NA

12/7/2017 12/7/2017 Suomen Erillisverkot Oy Nordic Cyber Security Oy Defense $6 NA NA

12/4/2017 4/18/2018 TTM Technologies, Inc. Anaren, Inc. Defense $941 4.6 x 21.7 x

11/29/2017 12/31/2017 Qualys, Inc. Defensative LLC Aerospace $8 NA NA

11/24/2017 Pending Sichuan Tianyi Science & Technology

Co., Ltd.

Stakes in 12 Companies in China Government

Services

$948 NA NA

11/20/2017 12/24/2017 Warburg Pincus LLC CYREN Ltd. Government

Services

$73 2.3 x NA

11/14/2017 11/14/2017 OMERS Private Equity Trescal SA Aerospace $789 2.5 x NA






11/14/2017 Pending Hartenberg Capital Avia Prime S.A. Government

Services

$69 NA NA

11/9/2017 12/11/2017 Ichor Holdings, LLC Talon Innovations Corporation Defense $130 NA NA

11/9/2017 Pending Shaanxi Lixin Zhibang Energy


Xi'an Tianhe Civil-Military Integration Innovative

Technology Research Co., Ltd.

Defense $34 NA NA

11/9/2017 12/31/2017 Getac Technology Corporation WHP Workflow Solutions LLC Aerospace $21 NA NA

11/8/2017 11/8/2017 Structural Monitoring Systems Plc Anodyne Electronics Manufacturing Corp. Aerospace $8 NA NA

11/7/2017 10/31/2017 BNP Paribas Développement SA, SCR Faure Herman SAS Defense $22 NA NA

11/2/2017 11/23/2017 Cirrus Networks Holdings Limited Correct Communications Pty Ltd Aerospace $4 0.4 x NA

11/2/2017 Pending Jackson Hole Airport Board Jackson Hole Aviation, LLC Aerospace $26 1.0 x NA

Aerospace Median 1.3 x 10.7 x

Aerospace Mean 2.0 x 11.8 x

Defense Median 1.7 x 9.3 x

Defense Mean 2.3 x 12.1 x

Government Services Median 1.3 x 8.8 x

Government Services Mean 1.4 x 10.0 x

SECTION 4: RECENT CONTRACTS



Top 50 Signed Contracts – October 2018

Date Signed Contractor Name Funding Agency Value ($mm) Description of Services

10/29/2018 Honeywell International Inc. Department of Energy $2,086.9 Operation of Miscellaneous Buildings

10/30/2018 Lawrence Livermore National Security Llc Department of Energy $1,436.8 R&D- Other Research and Development (Basic

Research)

10/30/2018 Los Alamos National Security Llc Department of Energy $1,200.8 Operation of Government-Owned Contractor-

Operated R&D Facilities

10/29/2018 Triad National Security Llc Department of Energy $854.6 Operation of Miscellaneous Buildings

10/30/2018 Honeywell International Inc. Department of Energy $734.9 Operation of Miscellaneous Buildings

10/24/2018 Sikorsky Aircraft Corp. Dept of The Navy $717.4 Logistics and Repair Support For Ch-53 and Mh-53

Aircraft Weapon Replaceable Assembly

10/17/2018 Northrop Grumman Systems Corp., Dba

Northrop Grumman Mission Systems Sector

Dept of The Navy $697.0 System Upgrades For The Ea-18G, Airborne

Electronic Attack and Electronic Warfare Systems

10/24/2018 Savannah River Nuclear Solutions Lls Department of Energy $412.9 Operation of Other Industrial Buildings

10/29/2018 Mission Support And Test Services Llc Department of Energy $369.8 Operation of Miscellaneous Buildings

10/26/2018 Battelle Memorial Institute Inc Department of Energy $279.5 Operation of Government-Owned Contractor-


10/4/2018 Military And Federal Construction Co. Inc. Dept of The Navy $249.0 General Construction Projects In The Hampton

Roads Area of Virginia

10/5/2018 Smit Singapore Pte Ltd Dept of The Navy $215.0 Salvage Related Towing, Harbor Clearance, Ocean

Engineering Project Services

10/5/2018 Smit Salvage Americas Llc Dept of The Navy $215.0 Salvage Related Towing, Harbor Clearance, Ocean

10/5/2018 Donjon Marine Co. Inc. Dept of The Navy $215.0 Salvage Related Towing, Harbor Clearance, Ocean

Engineering Project Services

10/1/2018 Triwest Healthcare Alliance Corp. Department of Veterans Affairs $192.0 Medical- Other

10/22/2018 Fluor Marine Propulsion Llc Department of Energy $174.4 Operation of Government-Owned Contractor-


10/17/2018 The Boeing Company National Aeronautics and Space

Administration

$164.1 R&D- Space: Aeronautics/Space Technology (Basic

Research)

10/11/2018 Clark/Smoot/Consigli A Joint Venture Smithsonian Institution $160.0 Construction of Museums and Exhibition Buildings

10/15/2018 Dyncorp International Llc Dept of The Navy $152.2 Logistics Support Services and Depot Level

Maintenance of Th-57 Aircraft

10/11/2018 Lockheed Martin Corporation National Aeronautics and Space

Administration

$150.0 R&D- Space: Flight (Advanced Development)

10/16/2018 The Boeing Co. Dept of The Navy $137.0 Maintenance Repair and Overhaul Engine Repair For

The P-8A Poseidon Aircraft

10/16/2018 General Dynamics National Steel And

Shipbuilding Co.

Dept of The Navy $136.8 Procurement of Long Lead Time Material and

Engineering Support For The Expeditionary Sea

10/25/2018 The Boeing Co. Dept of The Navy $131.6 Procurement and Upgrade of Weapon Replaceable

Assemblies To Optimize The Block I Low-Rate Initial

10/24/2018 Perspecta Inc. Office of Personnel Management $130.0 Support- Professional: Market Research/Public

Opinion

10/30/2018 Battelle Memorial Institute Inc Department of Energy $125.2 Operation of Government-Owned Contractor-




Top 50 Signed Contracts – October 2018 (Continued)


Date Signed Contractor Name Funding Agency Value ($mm) Description of Services

10/28/2018 Ut-Battelle Llc Department of Energy $123.3 Operation of Government-Owned Contractor-


10/16/2018 Standardaero Inc. Dept of The Navy $121.9 Maintenance Repair and Overhaul Engine Repair For

The P-8A Poseidon Aircraft

10/30/2018 T-Rex Consulting Corporation Us Census Bureau $107.3 Support- Management: Other

10/30/2018 Uchicago Argonne Llc Department of Energy $102.3 Operation of Government-Owned Contractor-

10/4/2018 Macdonald-Bedford | Mbp Jv Dept of The Navy $98.0 Construction Management Services In Support of

The Guam Defense Policy Review Initiative Program

10/4/2018 Federal Construction Group Inc. Dept of The Navy $95.0 General Construction Projects In Crane, Indiana

10/4/2018 Rand Enterprises Dept of The Navy $95.0 Heating, Ventilating and Air Conditioning Construction

10/2/2018 California Institute of Technology National Aeronautics and Space

Administration

$91.0 R&D- Space: Science/Applications (Applied

Research/Exploratory Development)

10/1/2018 Triwest Healthcare Alliance Corp. Department of Veterans Affairs $90.0 Medical- Other

10/25/2018 The Mil Corp. Dept of The Navy $84.6 Engineering, Integration/Production Support For The

Naval Air Warfare Center Aircraft Division’S C4Sir

10/9/2018 Northrop Grumman Corporation National Aeronautics and Space $83.4 Transportation/Travel/Relocation- Transportation:

10/18/2018 Ut-Battelle Llc Department of Energy $70.4 Operation of Government-Owned Contractor-


10/30/2018 State of California Department of Energy $68.3 Operation of Government-Owned Contractor-


10/3/2018 Chugach Federal Solutions Inc. Dept of The Navy $67.4 Option Five For Base Operations Support In The

Naval Facilities Engineering Command Northwest

10/3/2018 The Boeing Co. Dept of The Navy $62.7 F/A-18 E/F and Ea-18G Aircraft Inspections,

Modifications and Repairs

10/26/2018 Central Lake Armor Express Inc. Dept of The Navy $59.4 Production of Plate Carrier Generation Iii – Soft

10/15/2018 Bechtel Group Inc. Department of Energy $58.5 Construction of Government-Owned Contractor-


10/18/2018 Austal Usa Dept of The Navy $57.9 Procurement of Long-Lead-Time Material and

Production Engineering For The Expeditionary Fast

Transport 13

10/1/2018 Geo Care, Inc. Federal Prison System / Bureau of

Prisons

$56.2 Social- Social Rehabilitation

10/19/2018 Aecom Department of Energy $55.4 Operation of Restoration of Real Property (Public Or

Private). All Actions Necessary To Restore,

10/1/2018 Nuance Communications Inc. Department of Veterans Affairs $55.2 IT and Telecom- Integrated

Hardware/Software/Services Solutions,

10/23/2018 Konecranes Nuclear Equipment And Services Llc Dept of The Navy $54.9 Provide One 140-Ton Portal Crane At Portsmouth

Naval Shipyard

10/30/2018 Brookhaven Science Associates Llc Department of Energy $54.7 Operation of Government-Owned Contractor-


10/11/2018 General Dynamics Corporation Transportation Security

Administration

$50.6 IT and Telecom- Integrated

Hardware/Software/Services Solutions,

Predominantly Services

10/15/2018 Wr Systems Ltd. Dept of The Navy $50.0 Procurement of Positioning, Navigation and Timing

Engineering Support Service

Total Top 50 $13,251.4

Total Other Signed in August 7,280.72



Contract Overview by Agency and NAICS Code – October 2018*

Top 20 Agencies Ranked by Total Contract Value Signed in October

Top 20 NAICS Codes Ranked by Total Contract Value Signed in October

* Only includes contracts with value greater than $150,000

Rank Funding Agency Contract Value ($mm) # of Contracts

1 Department of Energy 8,655$ 75

2 Dept of The Navy 4,963 85

3 Department of Veterans Affairs 2,172 2441

4 National Aeronautics and Space Administration 1,258 295

5 Federal Acquisition Service 223 117

6 Office of Personnel Management 221 13

7 Federal Emergency Management Agency 201 73

8 U.S. Marshals Service 173 135

9 Smithsonian Institution 162 8

10 Agency For International Development 134 57

11 Public Buildings Service 133 140

12 Office of Procurement Operations 110 40

13 United States Mint 107 43

14 Federal Aviation Administration 95 97

15 Social Security Administration 80 41

16 Offices, Boards and Divisions 76 52

17 Bureau of The Fiscal Service 61 85

18 U.S. Coast Guard 60 95

19 Transportation Security Administration 54 4

20 Employment and Training Administration 53 21

Total Top 20 by Funding Agency 18,992$ 3,917

Rank NAICS Code Description Contract Value ($mm) # of Contracts

1 Facilities Support Services 6,128$ 136

2 Research And Development In The Physical, Engineering, And Life Sciences 2,167 20

3 Other Computer Related Services 424 267

4 Offices Of Physicians (Except Mental Health Specialists) 390 62

5 Computer Systems Design Services 383 156

6 Commercial And Institutional Building Construction 305 103

7 All Other Professional, Scientific, And Technical Services 269 66

8 Security Guards And Patrol Services 234 191

9 Investigation Services 215 6

10 Guided Missile And Space Vehicle Manufacturing 204 10

11 Research And Development In The Physical, Engineering, And Life Sciences (Except Biotechnology) 198 67

12 Engineering Services 194 123

13 Remediation Services 135 32

14 Other Residential Care Facilities 132 79

15 Nonscheduled Chartered Freight Air Transportation 131 10

16 Data Processing, Hosting, And Related Services 127 27

17 Administrative Management And General Management Consulting Services 118 174

18 Hazardous Waste Treatment And Disposal 102 8

19 Ambulance Services 100 64

20 Analytical Laboratory Instrument Manufacturing 98 215

Total Top 20 by NAICS Code Description 12,055$ 1,816

SECTION 5: KEY AEROSPACE & DEFENSE STATS



Key Aerospace & Defense Stats

ASM – Global (in thousands) # of Passengers - Global

RSM – Global (in thousands) Load Factor % - Global

Commercial Aerospace Orders

Source: FAA

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

200,000,000

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

De

c-1

7

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18ASM MoM Growth %

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

De

c-1

7

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

RPM MoM Growth %

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

De

c-1

7

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

Load Factor % MoM Growth %

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

De

c-1

7

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

MoM Growth % # of Passengers

LTM as of 9/2018 LTM as of 9/2017 YoY % Change 9/2018 8/2018 7/2018 6/2018 5/2018 4/2018 3/2018 2/2018 1/2018 12/2017 11/2017 10/2017 9/2017

Narrowbody Unit Orders 1,935 1,226 57.8% 69 95 15 174 33 62 160 22 26 1,022 188 69 101

Boeing 908 711 27.7% 32 90 15 126 24 0 158 2 11 255 143 52 61

737 908 711 27.7% 32 90 15 126 24 0 158 2 11 255 143 52 61

Airbus 1,027 515 99.4% 37 5 0 48 9 62 2 20 15 767 45 17 40

A320 1,027 515 99.4% 37 5 0 48 9 62 2 20 15 767 45 17 40

Widebody Unit Orders 298 339 -12.1% 33 4 20 75 35 26 29 29 0 19 16 12 27

Boeing 231 232 -0.4% 33 4 12 28 19 47 29 21 0 10 16 12 11

787 134 144 -6.9% 15 3 10 0 15 47 24 0 0 7 13 0 5

777 44 54 -18.5% 0 1 2 15 4 0 2 3 0 3 2 12 6

767 38 15 153.3% 18 0 0 13 0 0 3 4 0 0 0 0 0

747 15 19 -21.1% 0 0 0 0 0 0 0 14 0 0 1 0 0

Airbus 67 107 -37.4% 0 0 8 47 16 -21 0 8 0 9 0 0 16

A350 32 48 -33.3% 0 0 8 35 15 -22 0 0 0 -4 0 0 10

A380 14 -2 NM 0 0 0 0 0 0 0 14 0 0 0 0 0 A330 21 61 -65.6% 0 0 0 12 1 1 0 -6 0 13 0 0 6



Key Aerospace & Defense Stats

Global Business Jet Traffic

(Flights in Thousands)

9/2018 Global Business Jet Traffic

by Type (380K Flights)

Global Business Jet Deliveries2017 Global Business Jet Deliveries

By Market (676 Deliveries)

U.S. Defense Budget

* Base Budget Request

Source: GAMA, Office of the Under Secretary of Defense

63.8%

17.0%

9.9%

5.3%4.0%

North America Europe Asia-Pacific Latin America Middle East & Africa

518592

750

887

1,137

1,317

874

767696 672 678

722 718667 676

0

200

400

600

800

1,000

1,200

1,400

FY 2018 vs FY 2019

By Appropriation Title ($ in billions) FY 2016 FY 2017 FY 2018 FY 2019* Dollar Δ % Δ

Military Personnel $ 135.3 $ 135.4 $ 141.7 $ 152.9 $ 11.2 7.9%

Operation and Maintenance 197.5 197.1 223.3 283.5 60.3 27.0%

Procurement 110.7 110.7 115.0 144.3 29.4 25.5%

RDT&E 68.8 69.6 82.7 92.4 9.6 11.7%

Military Construction/Family Housing 6.9 6.5 8.4 11.4 3.0 35.9%

Other 2.5 2.4 3.5 1.6 (1.9) -55.6%

Total $ 521.7 $ 521.8 $ 574.5 $ 686.1 $ 111.5 19.4%

FY 2018 vs FY 2019

By Military Department ($ in billions) FY 2016 FY 2017 FY 2018 FY 2019* Dollar Δ % Δ

Army $ 123.3 $ 122.9 $ 137.1 $ 182.0 $ 44.9 32.7%

Navy 159.3 159.1 171.5 194.1 22.6 13.2%

Air Force 145.7 146.5 165.5 194.2 28.7 17.3%

Defense Wide 93.4 93.3 100.4 115.8 15.4 15.4%

Total $ 521.7 $ 521.8 $ 574.5 $ 686.1 $ 111.5 19.4%

86%

14%

Domestic International

390390

365

376

390

380

396

356354352

384

401

388

-2%

0%

2%

4%

6%

8%

10%

320

330

340

350

360

370

380

390

400

410

# of Flights MoM Growth %

SECTION 6: ABOUT SCOTT-MACON



Overview

Michael Papazis has over 15 years of investment banking experience. Prior to joining Scott-Macon, Mr. Papazis

was a Vice President of Aerospace & Defense Investment Banking at Oppenheimer & Co. Before Oppenheimer,

Michael was a Senior Associate within the Aerospace & Defense Investment Banking Group at Jefferies & Company.

Mr. Papazis began his career as an Analyst at Deutsche Banc Alex Brown in Baltimore, Maryland. Throughout his

career, Mr. Papazis has worked on several M&A, equity and debt financing transactions for various Aerospace &

Defense clients including Lockheed Martin, Kratos Defense & Security and Essex Corporation.

Mr. Papazis is a graduate of Dartmouth College with a B.A. in Economics and Government, Cum Laude. He also

holds an M.A. in International Affairs from the Johns Hopkins University School of Advanced International Studies

(SAIS).

Michael N. PapazisManaging Director


Scott-Macon, Ltd.

Office: (212) 755-8200

Fax: (212) 583-9262

[email protected]

www.scott-macon.com

Selected Transaction Experience

Undisclosed Undisclosed $8,000,000 Undisclosed $80,000,000 $590,000,000

Sale to Sale to Senior Secured Notes & Sale to Initial Public Sale to

Preferred Shares with Offering

Joint Bookrunner

£115,000,000 $38,000,000 Undisclosed $61,000,000 $268,000,000 $270,000,000

a portfolio company of

Acquisition of Hastings Equity Partners Sale to Equity Financing for Debt Financing for Acquisition of

and Admiralty Partners, Inc. Acquisition of Acquisition of

Sale to

Undisclosed £80,000,000 $66,000,000 $380,000,000 Undisclosed

Sale of Securement Sale to Sale to Acquisition of Sale to

Division to



Scott-Macon, Ltd. is one of the oldest independent investment banks in the United States focused on middle market

transactions in the range of $10 million to $500 million. The firm is comprised of senior professionals who have had extensive

transaction experience in the areas of mergers and acquisitions, debt and equity financing, valuations and fairness opinions and

general corporate financial consulting.

Founded in 1973 by Alfred L. Scott, Scott-Macon has remained unique in its commitment to provide clients with senior level

advisors who have had significant investment banking experience as well as, in many cases, direct operating experience. The

firm's philosophy of providing advice, ideas and solutions tempered by the perspective of actual operating experience has

benefited clients over the firm's long history.

Another cornerstone of Scott-Macon’s operating philosophy is a client-oriented approach to investment banking services, in

contrast to today’s transaction-oriented environment. Scott-Macon professionals strive to understand the unique aspects of

each client's operations and will not hesitate to counsel against a transaction if it does not appear to be in the long-term best

interests of a client. The firm’s ownership by its own management team enables and encourages a truly unbiased and

independent perspective; free from the inherent conflicts and cross-selling that can occur when advisory services are integrated

into broader financial services platforms incorporating banking, securities or accounting. The success of Scott-Macon’s client-

oriented approach has been validated over the firm’s history by the high percentage of repeat engagements which the firm has

experienced from its clients.

About Scott-Macon

Aerospace

OEM

Structures

Components

MRO / Aftermarket

Defense

Defense Electronics

Homeland Security

Defense Systems

C4ISR

Government Services

Intelligence

Civil / Non-Defense

SETA / Engineering

IT Services

Aerospace Defense & Government Services Coverage

About Scott-Macon

Over 40 Years of Senior Level Experience, Attention & Execution in Investment Banking

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