KippsDeSanto & Co., an investment banking firm focused on serving growth-oriented
Aerospace & Defense (“A&D”) and Government Technology Services (“GTS”) companies, is
pleased to share its DealView – the “Top 10 M&A Deals of the Quarter” – for the quarter ended
December 31, 2024.
Of the above transactions, we would like to highlight the following deals:
The A&D deal of the quarter is Stonepeak’s pending $3.1 billion acquisition of Air Transport
Services Group, Inc. (NASDAQ: ATSG) (”ATSG” or “the Company”). Headquartered in Wilmington,
Ohio, ATSG provides aircraft leasing, cargo, and passenger air transportation solutions for both
domestic and international air carriers, as well as companies seeking outsourced airlift services.
The Company supports 5,300 employees and 10 subsidiaries, each operating across four key
business segments: Aircraft Leasing Solutions, Aircraft Operating Solutions, Aircraft Maintenance,
Repair, and Overhaul (“MRO”), and Flight and Ground Support Solutions. ATSG’s fleet includes
114 freighter, 16 passenger, and 4 combi aircraft across models such as the Airbus A321, Boeing
767, and Boeing 757. The acquisition serves Stonepeak’s North American Infrastructure
Investment Strategy by accessing ATSG’s deep relationships with large e-commerce companies
and integrators, a fleet full of scale and capacity, and an employee base relentlessly focused on
safety and on-time performance. ATSG’s position as the top provider of freighter leasing globally,
combined with its critical function within e-commerce and other supply chains, demonstrates
continued demand for critical infrastructure assets among financial sponsors. Stonepeak will
acquire all the issued and outstanding common shares of the Company at $22.50 per share. The
consideration offered to the Company’s shareholders under the transaction represents a 29.3%
premium to the closing share price on November 1, 2024, the last full trading day prior to the deal’s
announcement. The transaction is expected to close in the first half of 2025 and remains subject to
regulatory approvals.
The GTS deal of the quarter is the acquisition of BlueHalo, LLC (“BlueHalo”), a portfolio
company of Arlington Capital Partners, by AeroVironment, Inc. (“AeroVironment”). Based in
Arlington, VA, BlueHalo is a provider of next-generation capabilities in several key mission areas
including space technologies, counter-uncrewed aircraft systems, directed energy, electronic
warfare, cyber, artificial intelligence, and other emerging technologies. BlueHalo has grown
organically and through a series of acquisitions since Arlington Capital Partners' initial investment
in 2019, focused on cutting-edge research and development to create transformative products and
services for the future of global defense. AeroVironment’s acquisition of BlueHalo will create a
diversified defense technology company with a highly complementary and differentiated portfolio of
solutions in uncrewed systems, short and long range loitering munitions, counter-uncrewed aircraft
systems, space technologies, electronic warfare and cyber, powered by artificial intelligence and
autonomy. The combination aims to drive innovation, expand manufacturing capacity and enable
better support to customers and their critical missions. The all-stock transaction with an enterprise
value of approximately $4.1 billion was announced on November 19, 2024 and is expected to close
in the first half of 2025 subject to regulatory approvals.
KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented
Aerospace & Defense, Government Services, and Technology companies. We are focused on
delivering exceptional M&A and Financing transaction results to our clients via leveraging our
scale, creativity and industry experience. We help market leaders realize their full strategic value.
Having advised on more than 200 industry transactions since 2008, KippsDeSanto is recognized
for our analytical rigor, market insight, and broad industry relationships. There’s no substitute for
experience. For more information, visit www.kippsdesanto.com.
Securities and investment banking products and services are offered through KippsDeSanto
& Co., a non-banking subsidiary of Capital One, N.A., a wholly owned subsidiary of Capital One
Financial Corporation. KippsDeSanto is a member of FINRA and SIPC. Products or services
are Not FDIC Insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not
Insured By Any Federal Governmental Agency.
