Aerospace & Defense Acquisitions in Canada

Solestra Group, a North American precision manufacturing platform backed by Emko Capital, acquired LHM Technologies Inc., an aerospace supplier specializing in landing gear systems. The deal expands Solestra’s integrated North American aerospace manufacturing footprint and adds advanced capabilities in precision complex machining, sub-assemblies, and custom tooling. LHM Technologies is headquartered in Woodbridge, Ontario, Canada.

Maverick Aviation Group Limited acquired Maxcraft Avionics Ltd., a Canadian provider of avionics installation, repair, and design engineering services headquartered in Pitt Meadows, British Columbia. The transaction expands Maverick’s presence in Western Canada and enhances the combined group’s avionics and instrument service capabilities, while maintaining continuity as Maxcraft leaders Daryl Macintosh and Steve Nunn remain in place.

De Havilland Aircraft of Canada (DHC) has acquired all shares of Fleet Canada Inc., an aerostructures and parts supplier based in Fort Erie, Ontario. The acquisition expands DHC’s in-house manufacturing capabilities, including metal-to-metal bonding and advanced composites, and adds facility capacity to support future growth across programs such as Twin Otter, Canadair-515, and Dash 8.

Firan Technology Group Corporation (FTG) entered into and subsequently closed a court-approved plan of arrangement to acquire 100% of the issued and outstanding shares of FLYHT Aerospace Solutions Ltd. The transaction provided FLYHT shareholders an election of cash, FTG shares, or a mix (subject to proration and aggregate caps), and results in FLYHT becoming a wholly owned subsidiary of FTG, expanding FTG’s presence in the commercial aerospace aftermarket and Airbus-related SATCOM offerings.

AMETEK, Inc. announced the acquisition of Virtek Vision International, a provider of advanced laser-based projection and inspection systems. Virtek develops and manufactures 3D laser projectors, smart cameras, and quality control inspection systems used to automate complex assembly and improve manufacturing efficiency in aerospace, defense, and industrial applications.

DCM Group Inc., a portfolio company of Thrust Capital Partners, announced the acquisition of DH Aerospace Holding Inc., which operates as Koss Aerospace and Brampton Processing. The deal expands DCM beyond Quebec into Ontario and adds metal finishing and surface treatment capabilities, positioning DCM as a more vertically integrated aerospace supplier serving commercial aerospace and defense customers.

Platinum Equity Advisors, through an affiliate purchaser, entered into a definitive arrangement agreement to acquire Héroux-Devtek Inc. for $32.50 per share in cash, implying an enterprise value of approximately $1.35 billion. Certain members of Héroux-Devtek senior management will roll over a portion of their shares into the acquiring entity, and the company will become privately held following closing.

SCALIAN announced it has acquired Canadian avionics engineering firm Mannarino Systems & Software Inc. (MANNARINO), which specializes in safety-critical, certified systems and software for aerospace, including electric aircraft and drones. The deal supports SCALIAN’s international expansion strategy and strengthens its avionics and unmanned systems offerings across Europe and North America.

Swift Anchor Holdings made a strategic investment in Essential Turbines Inc. (ETI), an aerospace maintenance, repair and overhaul (MRO) provider for aircraft engines, alongside Balance Point Capital. Balance Point Capital provided both debt and equity to support the transaction, and ETI founder Michael E. Guntner Jr. retained a minority stake and will remain involved as a shareholder and board member.

TransDigm Group Incorporated completed the acquisition of SEI Industries LTD, a provider of highly engineered aerial firefighting and liquid transportation solutions including the Bambi Bucket product line. SEI Industries is headquartered in Delta, British Columbia, and the transaction was financed using TransDigm’s existing cash on hand.

Cadre Holdings, Inc. entered into a definitive agreement and subsequently completed the acquisition of ICOR Technology Inc., a manufacturer and distributor of explosive ordnance disposal (EOD) robots and specialized protective security equipment for EOD and military organizations worldwide. ICOR is headquartered in Ottawa, Ontario, and the deal was funded with Cadre’s available cash (with earlier commentary noting potential use of its revolving credit facility).

Thrust Capital Partners (TCP), in partnership with Desjardins Capital, acquired DCM Group Inc., a Quebec-based aerospace manufacturer and services provider. Investissement Québec, an existing investor in DCM, will retain its ownership stake to continue supporting the company’s growth. The transaction represents the second platform acquisition for Thrust Capital Partners Fund I L.P.

De Havilland Aircraft of Canada Limited (De Havilland Canada) announced the acquisition of Mid-Canada Mod Center (MC2) and Avionics Design Services (ADS). The acquired businesses will operate as subsidiaries and strengthen De Havilland Canada’s avionics upgrade, engineering, and maintenance/repair/overhaul capabilities across Canada.

Muhr und Bender KG ("Mubea") signed an agreement to acquire Cyclone Manufacturing Inc., a Canadian aerospace manufacturing company headquartered in Mississauga, Ontario. The sellers are Andrew Sochaj and his family, who are selling their entire aerospace activities to Mubea, including approximately 700 employees across facilities in Ontario and a plant in Kraśnik, Poland. Cyclone will be integrated into the Mubea Aviation Division as a legally independent entity, subject to customary closing conditions and antitrust approval.

Thrust Capital Partners (TCP) entered into a strategic partnership with Dishon Limited, an Ontario-based manufacturer of complex machined components and assemblies serving the aviation, space, and satellite sectors. The investment represents the first platform acquisition for Thrust Capital Partners Fund I L.P., with Dishon’s founding Dishy family retaining substantial ownership and remaining in management roles.

Flexjet Inc. announced that Flying Colors Corp., an aviation maintenance, repair and overhaul (MRO) provider, is joining the Flexjet family of companies. The acquisition expands Flexjet’s in-house maintenance and aircraft completions capabilities and adds facilities including Flying Colors’ headquarters operation in Peterborough, Ontario, Canada.

Arcline Investment Management acquired International Water-Guard (IWG), a provider and servicer of proprietary potable water systems and components used in business and commercial jet applications. Founded in 1989 and headquartered in Surrey, British Columbia, IWG’s portfolio includes flight-certified water treatment units, on-demand water heaters, pumps, tanks, and complete aircraft water systems installed or retrofitted on more than 4,000 aircraft worldwide.

Investment funds managed by Morgan Stanley Private Equity Secondaries and Clairvest Group completed a growth equity investment in Top Aces, alongside existing shareholders including CDPQ. The investment is intended to support expansion of Top Aces’ aircraft fleet and the growth of its mission-critical adversary air and JTAC training services for NATO-allied armed forces.

Electrical Components International, Inc. (ECI) announced the acquisition of Aerosystems International, Inc. (ASI), a specialty manufacturer and supplier of electrical distribution and control systems for the aerospace market. ASI, founded in 1971 and based in Saint-Laurent, Montreal, provides integrated design, engineering, and manufacturing services for aerospace OEMs. ECI is a portfolio company of Cerberus Capital Management, L.P.

RENK Group, through its suspension specialist Horstman, has acquired General Kinetics Engineering Corporation and its US subsidiaries. The deal combines General Kinetics with RENK/Horstman’s existing advanced mobility capabilities to form Horstman Canada, expanding RENK’s North American defense mobility and suspension systems footprint.

Epiq Solutions, a portfolio company of The Veritas Capital Vantage Fund, has completed the acquisition of Xiphos Systems Corporation. Xiphos will join the Epiq platform and continue operating under its brand from its headquarters in Montreal, Quebec, expanding Epiq’s space-focused high-performance computing and processing capabilities. Financial terms were not disclosed.

Allied Motion Technologies Inc. (Nasdaq: AMOT) acquired FPH Group, a developer of electrical drive systems and lightweighting/composite technologies for ground-based defense vehicles. FPH is a Canada-based company with operations in London, Ontario and Roseville, Michigan, and the acquisition is intended to deepen Allied Motion’s defense market penetration and broaden its engineered electrification and composite capabilities. Financial terms were not disclosed.

Latécoère entered into an arrangement agreement and subsequently completed the acquisition of all issued and outstanding shares of Avcorp Industries Inc., an aerostructures supplier building major airframe structures and composite parts for leading aircraft manufacturers. The deal, valued at approximately CAD$41 million and financed with Latécoère cash on hand, expands Latécoère’s North American manufacturing footprint and increases exposure to defense and key platforms including the F-35 and B737 Max.

TransDigm Group Incorporated entered into a definitive agreement to acquire DART Aerospace for approximately $360 million in cash. DART Aerospace, a portfolio company of Greenbriar Equity Group, L.P. and First Aviation Services Inc., is headquartered in Montreal, Quebec and provides highly engineered helicopter mission equipment solutions primarily serving civilian aircraft. The transaction is expected to close in the second calendar quarter of 2022, subject to regulatory approvals and customary closing conditions, and will be financed with existing cash on hand.

CAI Capital Partners (CAI) closed an investment in ATS Services Ltd., a Canadian provider of aviation communication services and meteorological observation services. ATS is headquartered in Ottawa, Ontario and operates across 65 sites throughout Canada, also providing training and distributing specialized meteorological equipment across North America. The transaction included debt financing from The Bank of Nova Scotia.

Maverick Aviation Group acquired Bristow Instruments, an aviation instrumentation services provider headquartered in Sherwood Park, Alberta. The deal represents Maverick’s inaugural platform acquisition, with plans to invest in and expand Bristow’s capabilities and market presence.

On 2 December 2020, FL Technics, a global aircraft maintenance, repair and overhaul (MRO) services provider, acquired Wright International, a Canadian independent provider of aircraft line maintenance services. The deal gives FL Technics and its parent Avia Solutions Group an entry point into the North American aviation services market, while Wright International continues operating under its existing leadership.

FDH, a portfolio company of Audax Private Equity, acquired Societe AHE Inc. (AHE), a Montreal-based distributor of aerospace hardware focused on the rotorcraft market. The acquisition expands FDH's rotorcraft product offerings and extends its reach to a diversified global customer base.

Precision Aviation Group, Inc. (PAG), a GenNx360 Capital Partners portfolio company, acquired World Aviation Corporation (WAC), an aerospace MRO business based in Toronto, Ontario. WAC specializes in rewinding and repairing rotary and static electrical generators and motor sub-components, expanding PAG’s MRO capabilities and Canadian footprint.

STS Aviation Group acquired Airbase Services, Inc. / Les Services Airbase, Inc., an aircraft interiors maintenance, repair and management specialist headquartered in Montreal, Quebec, Canada. The acquisition marks STS’s entry into the Canadian MRO market and includes four Transport Canada-approved facilities. Financial terms were not disclosed.

Aero 3, Inc., through its wholly owned subsidiary AeroRepair Corp, acquired the Wheel & Brake Division of Avianor, Inc. (Avianor W&B). The deal is Aero 3’s second add-on acquisition in 2015 and Avianor W&B will be integrated into Aero 3 and rebranded as AeroRepair Canada.