PE Weekly: Aerospace and Defense Take-Privates Tick Up

Private equity activity in the aerospace and defense sector is seeing a notable increase in take-private transactions and strategic platform investments. Recent deals involve major firms like Arcline Investment Management and Bain Capital targeting specialized manufacturers and supply chain providers. These moves signal a robust appetite for mission-critical infrastructure and technology within the global aerospace and defense markets.

Arcline Investment Management has completed a $535 million acquisition of Continental Aerospace Technologies, transitioning the piston aircraft engine manufacturer to private ownership. The company was previously held by subsidiaries of the Aviation Industry Corporation of China. Simultaneously, Bain Capital Private Equity has acquired a majority stake in FDH Aero, a prominent global provider of supply chain solutions for the aerospace and defense industry, while former majority owner Audax Private Equity retains a minority position.

Godspeed Capital Management is expanding its footprint in the government services and technology space by establishing a new space infrastructure platform. This initiative centers on an investment in JP Donovan, a firm specializing in space infrastructure, precision machining, and fabrication. The company provides mission-critical support solutions for both commercial and government space customers, highlighting the growing private equity interest in the burgeoning space economy.

In another significant take-private deal, Thoma Bravo acquired the Canadian process automation provider Kneat, also known as kneat.com, inc., for approximately $466 million. While the firm serves various sectors, its focus on process automation is increasingly relevant for complex manufacturing environments like aerospace. Furthermore, the industry is seeing technological shifts in fundraising, as evidenced by a new partnership between law firm Kirkland & Ellis and Palantir Technologies to launch an AI-powered platform designed to transform private equity data management and fundraising.