I am thrilled to announce the acquisition of Trinity Aerospace in Toronto, Canada. We are excited about this latest acquisition and delighted to welcome Trinity Aerospace into the AEFP family. This is an exciting opportunity to accelerate our growth and expand our market presence. We are confident that this partnership will enable us to better serve our customers and drive innovation across the industry.
Welcome to Kofi Bannerman-Maxwell and Glenn Bannerman-Maxwell at Trinity Aerospace, and thank you for those who helped to make this happen: John Mann Jr. and Jackson Dunlap at EMKO Capital, Christian Tylko and Jacques Gagnier at Cafa Corporate Finance.
Click on the link below to see the full press release.
https://lnkd.in/eaiqfi7H
“It has been a busy period, with the successful demerger of the Dowlais businesses allowing full focus on executing the remaining restructuring plans for Aerospace, as a standalone business.
Aerospace continues to perform strongly, with restructuring projects well underway and on track to be materially complete in the near future, unlocking the full potential of this great business.
The business's adjusted operating margin more than doubled compared to the prior period to 10.7%, representing good progress towards its 2025 operating margin guidance of 17-18% as outlined during the Capital Markets Event in May 2023. This has allowed an upgrade to 2023 expectations, predominantly focused on Engines, with further volume recovery and improvements to come.
Supported by continued strong momentum and market recovery underpinned by robust demand, the outlook for the Aerospace business is very positive and we remain confident in its prospects and ability to perform well in 2023 and beyond.
Aerospace's technology is embedded on the world's most successful, highest volume platforms. This progress is supported over the medium-term through ongoing business improvements, as well as the increase in flight hours and narrowbody production in civil and growing defence budgets driving demand for military platforms.
Inflationary pressure and global supply chains continue to provide some challenges which are expected to continue into 2024, but the business continues to manage these and has been able to fully offset all additional costs.
Building on its commitment to developing best in class sustainable technology solutions that will assist in moving the aviation sector into the era of more sustainable air travel, the business continues to progress the technological advances made on the successful #H2Gear project. Aerospace signed a partnership agreement with Embraer at the 2023 Paris Air Show, laying the path to flight testing a zero-emissions liquid hydrogen propulsion system.
The business also advanced its Additive Manufacturing leadership, introducing its largest Additive Manufacturing cell at the new Global Technology Centre in the US.” Simon Peckham, CEO of Melrose Plc#aerospace#halfyearresults
Significant breaking news for commercial aircraft and Boeing supply chain stakeholders: Boeing Reaches an Agreement to Re-Acquire Spirit AeroSystems in a reported $8.3 billion deal. Obviously, a lot at stake in this deal and the subsequent complexities toward expected completion by mid-2025. Also, a major setback in prior supply chain outsourcing strategy decisions.
https://lnkd.in/e2UiHewi#supplychainsourcing#procurement#aerospace
AEFP Group's Bold Leap in Aerospace with Trinity Aerospace Acquisition
AEFP Group's recent acquisition of Trinity Aerospace sets a new course for the industry. This merger not only amplifies AEFP's manufacturing capabilities but also strategically positions the company as a powerhouse in the global aerospace market.
Transforming the Aerospace Manufacturing Ecosystem:
🌍 Enhanced Integrated Solutions: The integration of Trinity Aerospace’s expertise propels AEFP into new heights of manufacturing complexity and value, making it an attractive partner for industry giants like Airbus and Bombardier.
🌍 Synergistic Growth Opportunities: This merger catalyzes operational efficiencies and innovation, essential for scaling in the competitive A&D sector.
🌍 Global Market Expansion: With a reinforced presence in North America and enhanced global reach, AEFP is poised to unlock new international markets and opportunities.
Innovation and Technological Advances:
💡 Advanced Manufacturing Technologies: Merging Trinity's state-of-the-art fabrication with AEFP's precision machining sets the stage for groundbreaking aerospace component production.
💡 R&D Synergies: Accelerated innovation cycles from combined R&D efforts promise faster rollout of advanced aerospace technologies, reinforcing market leadership.
Investor Insights:
📈 Robust Investment Potential: The strategic nature of this acquisition offers significant return opportunities, given the expanded capabilities and market reach.
📈 Long-term Growth Prospects: Positioned for sustained growth, AEFP is a compelling choice for investors focused on long-term market share and profitability.
📈 Market Leadership and Innovation: AEFP stands out as a leader in aerospace innovation, making it an attractive investment for those seeking exposure to industry front-runners.
AEFP Group's acquisition of Trinity Aerospace is not just a growth strategy but a visionary redefinition of the aerospace manufacturing landscape. As AEFP harnesses the strengths of both entities, it promises enhanced value and leadership in the global market. Read More: https://lnkd.in/g9w76cpG#Aerospace#MergersAndAcquisitions#AEFPGroup#TrinityAerospace#Innovation#GlobalMarket#InvestmentOpportunity#BusinessStrategy#MarketLeadership
Boeing’s tragedy: where did it all go wrong?
Very interesting article by Yves Doz and Keeley Wilson. Especially exciting to read and reflect when you are immensely engaged in the major transformation of VMware under the Broadcom Software acquisition and integration. Thanks to Pavol Varga for not letting me miss it. 😉
Interesting insights:
- As a result of the McDonnell Douglas acquisition in 1997 - the tougher, leaner managers of the weaker company elbowed out the more gentlemanly leaders of the acquirer. Not a unique thing: a practice that has been observed in other mergers – for instance, Solvay and Rhodia in Europe or, much earlier, GSK and Wellcome.
- Making experienced workers and engineers redundant could become an irreversible change. At Boeing, while growing reliance on partners and subcontractors made up for the shortfall of skilled personnel, hands-on experience and competence in the actual design and building of aircraft were lost.
- Running a global supply chain partner network is incredibly complex. While certain companies (e.g. ASML) consider it their core competence - Boeing simply underestimated what it took to deliver hundreds of thousands of parts and subassemblies each plane needed. Working with foreign partners and design centres presented unique and unexpected challenges.
- Financial engineering can easily take priority over engineering. We had seen it at Intel Corporation before Pat Gelsinger. And up until 2019, Boeing’s board had been rich in retired government officials but short in aerospace expertise.
For me, the most interesting aspect of the Boeing/Spirit announcement is the messaging layered into Dave Calhoun's quote, given what it says about Boeing's larger communications strategy.
"'We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders and the country more broadly,' said Boeing President and CEO Dave Calhoun."
The key phrase is "...the country more broadly." This message -- that what's good or bad for Boeing is good or bad for the U.S. -- also surfaced recently in Calhoun's written testimony about Boeing safety culture before the U.S. Senate Permanent Subcommittee on Investigations:
"Getting this right is critical for our company, for the customers who fly our planes every day, and for our country.”
Contrast that with comments in March by Federal Trade Commission Chair Lina Kahn that "Boeing is the clearest example of a purposeful decision to bet on national champions on behalf of American interests,” but that it is also "the single best example of why a national champion strategy can be catastrophic."
Boeing is vulnerable right now to the FAA, the DoJ, the NTSB and, of course, Congress. Additionally, 47% of its revenue comes from U.S. government contracts. So I would expect to hear more of the "as goes Boeing, so goes the country" messaging whenever the company's interests appear remotely threatened.
The message makes sense strategically, and it isn't entirely wrong, either (on the basis of market exposure alone). But for a company that I believe sincerely wishes to transform its culture, I worry that "too big to fail" is exactly the wrong mindset for them to embrace or promote.
Editor-in-chief of The Air Current, journalist, chaser of things that fly. Proud alum of CNN, WSJ & Flightglobal.
The latest from The Air Current: Boeing has agreed to acquire its largest supplier, Spirit AeroSystems, in a bid to regain its industrial stability 19 years after the aerostructures manufacturer was created through a fraught strategy of divestiture and outsourcing that cost Boeing billions of dollars and far outstripped any benefit it aimed to gain from the breakup. #staycurrent
NEWS OF THE DAY!
Boeing's Bold Move: Talks of Acquisition Propel Spirit AeroSystems (SPR) Shares 10% – What's Next for Aerospace Giants?
1. Spirit AeroSystems (SPR) surged 10% due to reports of potential acquisition talks with Boeing (BA), its former owner.
2. SPR hired bankers to explore options and held preliminary discussions with Boeing.
3. Boeing declined 1.3% amidst the news.
4. SPR is also considering selling its operations in Ireland, which manufacture parts for Airbus.
5. There were talks of Airbus acquiring the A220 wings plant from SPR, but no deal seems imminent.
6. SPR's market cap stands at $3.3 billion.
7. The potential deal with Boeing follows SPR's recent 10% drop due to safety issues with Boeing's 737 Max jet.
8. SPR manufactures fuselages for Boeing and Airbus.
9. Boeing's CEO previously dismissed the idea of acquiring Spirit AeroSystems.
10. Both Boeing and Spirit AeroSystems have suspended their financial forecasts due to ongoing scrutiny and safety concerns.
=>Please follow Finplate and stay updated with the latest #mergersandacquisitions news. Thanks in advance.
To read the news in detail, click below:
https://lnkd.in/gWn96jdU
In the face of a challenging market, aerospace M&A in North America has proven its mettle. Read all about it in Origin's M&A Spotlight on Aerospace report. https://lnkd.in/gNYRumpM
<>While transaction volumes aligned with the broader market decline, the sector’s total transaction value is displaying impressive resilience
<>The industry's average transaction value continues to climb, evidence that investors are willing to make sizeable investments in the sector, despite tighter credit markets
<>With consumer demand remaining robust and supply chain and labor issues gradually resolving, the outlook for deal activity is positive.
Read our full report to learn more, including our highlighted transaction: the sale of Dishon Limited, a world class supplier of complex precision machine components and assemblies, to Thrust Capital Partners, a private equity firm exclusively focused on the Canadian aerospace industry and its supply chain.
Subscribe to our industrials reports here: https://lnkd.in/gWFpfeFUDarren WilliamsNick Newlin Adam Smith Francis Laferriere, CPA, CA, MBA#aerospace#space#mergersandacquisitions#mro#engines#components#precisionmachining
Great article and well written. Will be interesting to see how Boeing and Airbus respond to having suppliers who are now equally as large or even eclipsing their size. It does make you contemplate on who really controls the development of large projects such as the B777 and other future large scale developments. Boeing recently announced they won’t be developing any new commercial aircraft for almost a decade. When they do decide to launch a development then where geographically will they do so and how even these next generation aircraft are designed and built may radically change. India is shaping the world at the moment and China still has plenty of space for growth in technology. How will our US government intervene is also an important factor which may also shape the fundamental relationship between technology development and manufacturing of complex products such as large scale commercial aircraft. Don’t even get me started on AI! This could easily be considered a game changer but it is too early to tell how this will develop although I don’t think we will have to wait very long to see its impacts both positively and negatively. All the best and congratulations on your success and the article in Forbes!
