Aerospace, defense transactions top July M&A activity

By: G.F. Gay Le Breton and Alexander Aguilar August 15, 2022 

https://bit.ly/3AtSGVW

Two Baton Rouge-based aerospace and defense contractors completed transactions in July to expand their operations.

Bascom Hunter acquired Missouri-based TelGaAs, which operates on the cutting edge of microwave and millimeter wave component and subsystem technologies. TelGaAs will be aligned under Bascom Hunter’s BH Tech brand, a provider of defense market products and solutions in Artificial Intelligence and Communications for the challenges facing warfighters. The transaction will allow Bascom Hunter to strengthen and expand its radiofrequency capabilities.

“TelGaAs is a synergistic acquisition that shares Bascom Hunter’s commitment to technical excellence, quality and customer satisfaction,” Andrew McCandless, Bascom Hunter’s CEO, said. “I’m excited about the expertise that their employees will bring for RF product design and manufacture.”

This acquisition is Bascom Hunter’s second in 2022. Its first was Houston-based Seamech International. Seamech operates under Bascom Hunter’s Xcelaero brand, which provides environmental control systems and thermal management components.

In the second aerospace and defense transaction, Mezzo Technologies has been acquired by Arcline Investment Management, a growth-oriented San Francisco private equity firm.

Mezzo designs and manufactures high-performance microtube heat exchangers used in mission-critical thermal management applications. Mezzo’s ability to design, manufacture and commercialize products offering measurable performance benefits was seen as a key differentiator, enabling the company to serve a wide variety of applications across the defense, aerospace, commercial, space and racing end markets.

The acquisition of Mezzo was announced in tandem with Arcline’s formation of Sigma Aerospace, an integrated provider of high-performance systems and specialized components for the aerospace industry. Signia is made up of two business units, Mission Equipment and Thermal Management. Mezzo will work with ACE Thermal Systems, a combination of Air Comm and Enviro Systems, in the Thermal Management division of Signia.

Mezzo Technologies President Kevin Kelly said that the acquisition will broaden his company’s reach and enable it to better support its customers.

G.F. Gay Le Breton is managing director for Chaffe & Associates Inc., responsible for the merger and acquisition activities of the firm. Alexander Aguilar is a financial analyst with the firm. Investment banking services are provided by Chaffe Securities Inc., member FINRA/SIPC.