Janes Capital Partners has a proven track record of generating premium valuations. Our success is predicated upon our ability to clearly define, articulate and advocate each client’s value proposition.
Successful Sale of a Critical Cybersecurity Technology to a Leading Defense Contractor
Janes Capital Partners served as Exclusive Financial Advisor to Advatech Pacific in its sale of its Electronics & Communication Division (EC Division) to General Dynamics Mission Systems. The EC Division is a leading designer and manufacturer of cyber-secure, tactical cross-domain Solutions for the U.S. Department of Defense and international militaries.
Janes Capital Partners was retained by Pacific Precision Products (PPP), a leading developer and manufacturer of oxygen systems and components for mid and large-cabin business jet original equipment manufacturers (OEMs) and completion centers. The sale process coincided with concerns about the uncertain, cyclical and concentrated nature of the business jet industry. Other challenges included the steep growth projections and size of the business.
Janes Capital Partners ran an aggressive M&A process, targeting global A&D primes and leading private equity groups. Utilizing a robust analysis of platform trends supported by multiple industry experts, along with highly detailed sales projections by shipset and platform, Janes Capital Partners mitigated the concerns regarding the business jet industry and validated potential growth opportunities. Janes Capital Partners highlighted PPP’s compelling market niche and its strong, unique competitive position. In addition, Janes Capital Partners’ industry focus and extensive knowledge of the Aerospace & Defense industry enabled it to clearly articulate the highly-complex and valuable attributes of this compelling business.
Through significant, competitive tension between both domestic and international buyers, Janes Capital Partners achieved a number of upward purchase price revisions. Janes Capital Partners eventually negotiated a premium valuation and favorable contractual terms with a strategic acquirer. A definitive agreement was signed three weeks after the execution of the letter of intent, while maintaining robust optionality for our client. The partnership between PPP and Zodiac will ideally position PPP to further develop the market for single-use oxygen system for business jets, military and commercial aircraft.
Ampac’s In-Space Propulsion Business was a fast-growing and leading developer and manufacturer of liquid propulsion systems and components. The Company’s products and systems were used on satellites, launch vehicles and missile defense systems. The complexity of the process was driven by multiple sites spread over multiple countries.
Our team worked tirelessly to understand the unique attributes and challenges facing the business. Throughout the process, we provided our client with boots-on-the-ground resources at its facilities around the world.
By effectively understanding this complex and globally dispersed business, we successfully created and maintained domestic and international buyer competition throughout the process. In the end, our team helped negotiate a truly strategic deal with an attractive valuation and favorable terms for our client.
Janes Capital Partners was retained by Composite Engineering (CEi), a prime contractor, developer and manufacturer of high performance, advanced aerial targets and UAV platforms for the U.S. and foreign militaries. The sale process coincided with growing concerns about potential cuts to the U.S. DoD budget and declining spending by foreign militaries.
Janes Capital Partners ran an aggressive M&A process targeting global A&D primes and leading private equity groups. We assisted management in developing an attractive and credible growth plan to address and mitigate concerns over the threat of potential DoD budget sequestration. In addition, our industry focus and extensive knowledge of the Aerospace & Defense industry enabled us to clearly articulate the highly-complex and valuable attributes of this unique business.
CEi was successfully sold to Kratos Defense & Security Solutions (“KTOS”) for total consideration of $165 million.
Featured in over 65 leading magazine cover stories, Scaled Composites was acknowledged for creating many ground breaking and award winning programs including: the first privately funded human space flight and reusable spacecraft with SpaceShipOne, the largest nonstop unrefueled flight with GlobalFlyer and the record holder for highest altitude with Proteus. In 2006 Scaled Composites was awarded another key program, SpaceShipTwo, which will be three times the size of its predecessor, SpaceShipOne.
Several of the most attractive attributes of this exceptional business created unique deal challenges. The company had extensive engineering capabilities which were frequently used to develop advanced programs. Such contracts and products required applicable security clearances thereby limiting access to data. This dynamic also created intense confidentiality concerns with regard to customers and employees. And, while the broad business mix was appealing to buyers, it required broad diligence spanning numerous advanced defense programs as well as space tourism.
Janes Capital Partners worked tirelessly with the shareholders and management to fully diligence and generate a customized strategy for marketing the business. After developing a detailed positioning strategy that effectively addressed differing stakeholder objectives and proactively ensuring a framework was in place to address any unexpected issues, our professionals approached the leading global OEMs and private equity groups.
Janes Capital Partners’ customized strategy helped maintain confidentiality throughout the multiple iterations that this process required. With our senior bankers heavily involved in every step of the process, the company overcame the potential deal-breaking effect of a tragic accident that occurred between signing and closing and obtained a very attractive valuation for the shareholders.
Despite its world-class engineering and design capabilities, Frontier Systems was truly a development stage company. At the time, its Vertical Takeoff and Landing (VTOL) UAVs were not in full production and, while highly valuable, the technology was still emerging and unproven. As expected, shareholders were intensely focused on confidentiality and secrecy given that the intellectual property had important standalone military UAV applications and myriad uses outside of UAVs.
Janes Capital Partners created and managed a comprehensive auction process involving a broad list of prospective buyers. By positioning the company as a growth opportunity that specialized in the future of military equipment for unmanned platforms, our professionals generated significant competitive tension among several major prime contractors. Our disciplined process and diligence management included controlled and buyer-specific release of sensitive information which helped maintain strict confidentiality and the release of information on a need-to-know basis.
Janes Capital Partners created and maintained a highly competitive auction process for Frontier Systems. The significant competitive tension resulted in a number of upward purchase price revisions ensuring that shareholders realized full value for the company. Simultaneously, our senior bankers were involved in every step of the negotiation to ensure that legal terms and conditions were attractive and post-closing risk was minimized.
Advatech Pacific’s Electronics and Communications Division (EC Division) is a designer and manufacturer of cyber-secure, tactical cross-domain solutions for the U.S. Department of Defense and international militaries. Despite the rapid growth the Business was experiencing, its small scale and niche market application presented challenges to the sale process. In addition, although the Business had secured contracts with several notable military programs, its steep forecast was met with concerns surrounding the sustainability of its product’s technology edge and leading position in the emerging tactical cross-domain market.
Janes Capital Partners ran a focused, highly targeted M&A process, identifying primarily strategic buyers with the capabilities to realize meaningful synergies with the Business. Janes Capital leveraged its strong relationships with the industry’s most prominent defense contractors to effectively communicate the Business’ unique story and market position. In addition, Janes Capital worked closely with the Business’ management team in the development and preparation of the detailed presentations given to interested parties, which successfully articulated the Business’ growth plan and mitigated forecast concerns.
Through a disciplined sales process and approaching the most logical buyers with a convincing market and growth story, Janes Capital Partners overcame the hurdles about the current scale of the opportunity and achieved a premium valuation for the Business from a strategic acquirer. General Dynamics Mission Systems is the ideal suitor for Advatech Pacific’s EC Division and will augment the fielding of its cross-domain products to protect the nation’s tactical military networks.
Strategic Acquisition of Unique Asset in Niche Market
Janes Capital Partners served as Exclusive Financial Advisor to Pacific Precision Products (“PPP”) in its sale to Zodiac Aerospace. Located in Southern California, PPP is a leading developer and manufacturer of oxygen systems and components for mid and large-cabin business jet original equipment manufacturers (OEMs) and completion centers.
Complex Corporate Divestiture Involving Multiple International Locations
Janes Capital Partners served as Exclusive Financial Advisor to American Pacific Corporation (“AMPAC”) (NASDAQ:APFC) in the sale of its In-Space Propulsion Business to Moog Inc. AMPAC is a leading custom manufacturer of fine and specialty chemicals. AMPAC supplies active pharmaceutical ingredients and advanced intermediates to the pharmaceutical industry. For the aerospace and defense industry, AMPAC provides specialty chemicals used in solid rocket motors for space launch and military missiles. AMPAC produces clean agent chemicals for the fire protection industry, as well as electro-chemical equipment for the water treatment industry.
Highly Successful Defense Exit Amid Growing Sequestration Concerns
Janes Capital Partners served as Exclusive Financial Advisor to Composite Engineering, Inc. (“CEi”) in its sale to Kratos Defense and Security Solutions, Inc. CEi is a prime contractor that specializes in the design, manufacture, test and operation of aerial target drones, unmanned systems and composite structures. CEi’s customer base includes: the U.S. Air Force, U.S. Navy, U.S. Army and the Office of the Secretary of Defense, along with a growing portfolio of foreign militaries and is the recognized global leader in providing high performance and threat representative aerial target drones.
World-Class Military R&D Company Focused on the Design, Engineering and Manufacturing of Advanced Composites for Manned and Unmanned Aircraft
Janes Capital Partners served as Exclusive Financial Advisor to Scaled Composites in its sale to Northrop Grumman Corporation. Founded by Burt Rutan in 1982, Scaled Composites is a world-class military research and development company with extensive experience in the design, engineering, processing and manufacturing of complex, advanced composites for defense, space and industrial applications. The Company has renowned design expertise in manned and unmanned aircraft design, with more than 25 proprietary designs.
Leading Advanced Defense System Designer with State-of-the-Art Design, Analytical and Manufacturing Capabilities
Janes Capital Partners served as Exclusive Financial Advisor to Frontier Systems, Inc. in its sale to The Boeing Company. Frontier Systems, Inc. is a leading advanced defense system designer with state-of-the-art design, analytical and manufacturing capabilities. The company’s founder, Abe Karem, was the original designer and developer of the Predator (now part of General Atomics), Shadow and A160T Hummingbird Unmanned Aerial Vehicles (UAVs).