Aerospace Industry Overview and Update

Gregory P. Range – grange@srr.com Aziz El-Tahch – aeltahch@srr.com

Industry Overview n n n
The global aerospace industry can broadly be categorized into two sectors. The commercial aerospace sector consists of companies that produce large commercial aircraft, regional aircraft, light aircraft (such as helicopters and business jets), aircraft engines, parts and auxiliary equipment, and commercial satellites. Dominated by Boeing in the United States and Airbus in Europe, the primary end customer is the global airline industry. As such, demand is generally correlated with global economic activity, which drives spending on air travel. Fuel prices also play a substantial role, as the airline industry is forecasted to spend $176 billion on fuel in 2011, representing 30% of global airline operating costs. The defense aerospace sector is comprised of companies that produce aircraft, engines, parts, equipment, weapons systems, and military satellites. Major companies in the sector include Lockheed Martin, Northrop Grumman, Raytheon, Boeing, General Dynamics, and BAE Systems. Demand is driven by defense spending, led globally by the United States with spending of approximately $700 billion in 2010, more than five times that of the second largest spender, China.

Recent Trends n n n
The two sectors of the aerospace industry were moving in opposite directions during the first half of 2011. In commercial aerospace, after suffering significant contraction in passenger volumes and massive losses in the economic meltdown of 2008 and 2009, the industry rebounded significantly in 2010 and is generating strong top-line growth in 2011. In the first half of the year, record passenger volumes were on pace to generate record revenues on a global basis for the airline industry. At the same time, high fuel prices are negatively impacting airline profitability. In June 2011, the International Air Transportation Association (IATA) downgraded its 2011 airline industry profit forecast to $4.0 billion, which represents a 54% decline from the $8.6 billion profit forecast in March 2011 and a 78% decline from the $18 billion net profit recorded in 2010.1 The reasons for this downward revision include the lingering impact of the earthquake in Japan, continued unrest in the Middle East and North Africa, and recent increases in fuel prices. By June 2011, the average oil price for 2011 had been revised upward to $110 per barrel, a 15% increase over the previous forecast of $96 per barrel.2 Nonetheless, the expectation of continued high volume of passenger travel is creating strong demand for new aircraft production, resulting in high order volumes, especially for fuel “Airline Industry 2011 Profit Outlook Slashed to $4 Billion,” IATA Press Release, 6 June 2011. 2 Ibid.
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Department of Defense (DoD) must maintain existing funding levels for all programs and may not make any new program awards. while more cost-efficient programs are enjoying increased spending. 22 June 22 2011.0 4. Secretary Gates announced a comprehensive review to identify $400 billion of cuts in defense spending by fiscal 2023.00 2004 2004 2005 2006 2007 2008 2009 2010 Source: Bloomberg L. both representing record levels exceeding the prior highs of 2008.P. significant uncertainty and risk clouds the outlook. and components are all benefitting from this dynamic.S. Capaccio. Between the two global titans. Congress passed the 7th continuing resolution – a type of appropriations legislation used to fund government agencies in the absence of a formal appropriations bill – for fiscal 2011. Increasing backlog and build rates are benefitting the supply chain.0 14.0 40 -15 -16.4 While many representatives of the defense aerospace industry believe that funding should be stable over the next two to three years (especially during the transition to new U.5 -10 -11. Pasztor.9 -13. Global airline industry revenues and passengers for 2011 are forecasted to be $598 billion in revenues and 2.00 In the defense aerospace subsector. and increased build rates for aircraft. Suppliers of aerostructures. Secretary of Defense Leon Panetta). 2 ©2011 Total Industry Fuel Costs ($ Billion) 10 .” Bloomberg News. Andy and Nathan Hodge.S.3 -9.” Wall Street Journal. 6 January 2011. 14 April 2011.7 240 15 190 Net Profits ($ Billion) 5 5. including a twoyear delay in the Marine Corps version of the F-35 “Joint Strike Fighter” jet produced by Lockheed Martin.Jet Fuel Prices Per Gallon $4.” Major (and costly) programs are being cut or deferred. Also in April 2011. efficient aircraft. with manufacturers experiencing extended lead times and firming prices.5 Dollar Per Gallon $3. “Gates to Cut Marine Vehicle. Overall passenger volume as measured by RPKs (revenue passenger kilometers) is forecasted to increase at a 5% annual rate through 2014.S. Secretary of Defense Robert Gates announced proposed cuts in U.S. In January 2011. Plans $178 Billion Cuts.0 -20 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011F -10 Source: IATA 3 4 5 Ratnam.3 In April 2011.” Bloomberg News. Gopal and Roxana Tiron.0 140 0 90 -5. Tony.1 -5 -7. with almost four times Boeing’s order base for the first half of 2011. electronics. B4. defense spending of $178 billion between fiscal 2012 and fiscal 2016. As a result of the continuing resolution. Airbus is currently winning the battle. engines. “Defense Sector Sees Delayed Outlay Cuts.00 $2. “Gates Launches ‘Comprehensive Review’ to Find $400 Billion in Defense Cuts.6 -4. just hours before a government shutdown. Boeing and Airbus. overall pressure on government spending and budgetary concerns have cast a pall over the industry as spending is “reprioritized.S. the U. Industry Fuel Costs and Net Profits 20 Net Profits Total Industry Fuel Costs 18. U.8 billion passengers. the U.00 $1.

and CFM are all producing new engines for this aircraft. ©2011 3 .” The Economist.7 Middle East.Airbus vs Boeing – Deliveries and Orders 1. 23 June 2011. The impact of this growth is already being felt. Kenya Airways flew to 42 non-domestic African cities as of June 2011.and Africa-based carriers are also growing.000 new airplanes will be needed over the next 15 years to satisfy global demand. “Asia Dominates Paris Air Show. For example.boeing. up from 16 in 2000. Launched in December 2010 with the promise of a 15% improvement in fuel efficiency. Rothman. Andrea and Jasmine Wang. With orders for 640 new aircraft in the first half of 2011.600 1. Airbus secured 418 firm 6 7 orders valued at $44 billion. the aircraft has already become the most successful aircraft launch in history. Boeing is falling well behind Airbus in new orders in 2011. Pratt & Whitney. over 27.400 1.000 to over 35. up from 22 in 2000. secondary aircraft manufacturers. and many of these orders came from carriers in Asia such as Malaysia-based AirAsia and India-based IndiGo and GoAir. 25 April 2011.” Bloomberg News.com Deliveries Orders Deliveries Orders Opportunities for Growth n n n With commercial airframe manufacturers and their supplier base enjoying strong order demand and build rates.6 Airlines in the Asia-Pacific region are expected to acquire the largest percentage of new aircraft. While Boeing and Airbus are the primary beneficiaries. At the Paris Air Show in June 2011.200 1. 8 “Looking East. which generated 171 new orders through June of 2011. and has nearly four times the order volume of Boeing. According to industry analysts. makers of large commercial aircraft will benefit from the replacement of older fleets among established airlines.000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD June 11 Source: www. should continue to benefit from significant growth in Asia.029 new orders since December 2010.com and www.200 1. FirstResearch Industry Profile.000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD June 11 1.000 by 2026. with the global airplane fleet growing from 17. 16 June 2011.400 1. GE. with 1. Airbus has already exceeded its full year total for 2010 of 574. such as Brazil-based Embraer and Canadabased Bombardier.600 1. and Ethiopian Airlines flew to 35 African cities outside Ethiopia as of June 2011. The importance of fuel efficiency is demonstrated by the success of the Airbus A320neo (new engine option).airbus. including 667 orders worth $61 billion at the 2011 Paris Air Show in June. Incidents such as the five-foot-long hole that opened up in a Boeing 737 operated by Southwest in April 2011 could lead to new inspection procedures and cause airlines to spend more “Aerospace Products & Parts Manufacturing”. Boeing forecasts air traffic in the Asia-Pacific region to grow at a 7% annual rate over the next 20 years.8 In the more mature markets of the United States and Europe.

companies that compete in the U. SPR.com. China and India incur over $90 billion and $30 billion. weather monitoring. companies that are certified as small businesses by the U. commonly referred to as “drones. Elbit. RTN. “SBA Considering Mandating Set-Asides on Multiple Award Contracts. Small Business Administration (SBA) could see some opportunity for growth. Teal Group. 30 March 2011. 1 March 2011. “UAV Market Will Total Just Over $94 Billion in Its Just Released 2011 UAV Market Profile and Forecast. respectively. PH. TGI. Robert. In order to reach its goal of awarding 23% of all contract dollars to small businesses.10 And.S. as well as companies that can develop more fuel-efficient technologies. agencies to allow small business set-asides under multiple award contracts such as the General Services Administration’s (GSA) Schedule program and other indefinite delivery-indefinite quantity (IDIQ) contracts. while not a significant part of the overall market. and SAI Large-Cap Civil Aerospace companies include: GR. Sierra Nevada Corp. TDG. there are potential applications for UAV technology outside of the military.. Dozens of manufacturers participate in this robust market globally.9 Among the winners were Boeing ($92 million). and border patrol surveillance. Other growth opportunities for defense aerospace companies include the production of missiles. Lockheed. government might allow. In addition. Furthermore. HXL. 9 10 4 ©2011 . Pakistan. which account for almost 30% of federal procurement spending. and Libya – and for the intelligencegathering activities of the CIA and other agencies that make up the intelligence community. 250 200 150 100 50 0 Jun-06 Dec-06 Jun-07 Long-Term Relative Stock Performance Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Defense Aerospace Large-Cap Civil Aerospace Mid-Cap Civil Aerospace Source: Capital IQ Defense Aerospace companies include: BA. Aerovironment).S.S. there should be opportunities for companies that perform outsourced fleet maintenance services (as airlines try to reduce capital costs by extending the lives of existing fleets). the U. agencies are not required to provide set-asides for task and delivery orders under these contract vehicles. ITT. ($75 million). including robotic cargo planes. a Virginia-based market research firm. manufacturers (General Atomics. Finally. UAVs are often better suited than piloted aircraft for modern day warfare – such as counterinsurgency strikes in places like Afghanistan.11 (Currently. Frank. NOC. While the outlook is somewhat bleaker for the defense aerospace market due to burgeoning government budget deficits.on outsourced fleet maintenance and modernization. has estimated that UAV spending will almost double over the next 10 years from current worldwide UAV expenditures of $5. GD. NASA awarded seed money to four companies for work on commercial crew vehicles in the second round of its Commercial Crew Development (CCDev-2) program. Northrop) to foreign competitors (Israel Aircraft Industries. ESL. Most important. there are significant growth opportunities for companies that make unmanned aerial vehicles (UAVs). commercial space market should continue to see growth opportunities.9 billion per year to $11. granting a total of $269. PCP. and Space Exploration Technologies Inc.” sUAS News.S. and possibly mandate. HEI. 19 April 2011 Smith. COL. “NASA Provides Seed Money For CCDEV-2.3 million to mature concepts for private spacecraft to carry astronauts to the International Space Station and other low-Earth-orbit destinations. as carrier profits continue to be squeezed by high fuel costs.) Finally. MOG. ranging from large defense contractors (Boeing. and UTX Mid-Cap Civil Aerospace companies include: BEAV. defense aerospace companies have been looking overseas – and especially in Asia – for growth opportunities.A. Dassault) to niche U. LLL. similar to commercial aerospace companies.3 billion per year.” GovernmentExecutive.” Aviation Week. LMT. and continued growth is expected for both markets. In April 2011. CW. in annual defense spending. TDY. 11 Brodsky. Mike. TXT All indices are market-cap weighted. HON.” UAVs are cheaper to produce (since they do not require the same level of redundancy and safety requirements) and safer (since no human pilot is at risk) than manned aircraft. ($80 million). Morring Jr. since missile stockpiles will need to be replenished as the wars in Iraq and Afghanistan draw to a close.

S. TDG. CFA.Trailing Enterprise Value (“EV”) to EBITDA Multiples 14. merger and acquisition (M&A) volume in 2011 started out slowly.S. business valuation. CW. El-Tahch has extensive experience across numerous industry segments. as large manufacturers seek to streamline and control their supply chains. NOC. whereas U. much of the M&A activity has involved aircraft component manufacturers being acquired by strategic buyers.310. however. 12 Opinions Group at Stout Risius Ross (SRR).646. and Employee Stock Ownership Plans (ESOP). PH. leveraged recapitalizations. the M&A markets are expected to remain active in the near-term. HON. “Aerospace Products & Parts Manufacturing”. after bottoming out in the first quarter of 2009. Not coincidentally.807. pricing multiples for defense aerospace companies have faltered due to the proposed cuts in defense spending and the negative impact of the continuing resolution on new contract awards. ERISAcovered trusts. estate and gift tax planning.0x 12. ITT. private equity firms. and Employee Stock Ownership Plan (ESOP) transactions. solvency opinions. leveraged buy-out transactions. 25 April 2011. is a Director in the Valuation & Financial M&A Activity n n n Relative to 2010. fairness opinions. In the defense aerospace subsector. including transaction advisory. In addition. Aziz El-Tahch. market via acquisition has also contributed to the increase in deal volume. distressed transaction advisory and private market financing.0x 2.4224 or aeltahch@srr. LLL. Range is a Managing Director in the Investment Banking Group at Stout Risius Ross (SRR) and head of the firm’s Los Angeles office. El-Tahch can be reached at +1.0x 6. By contrast. RTN. durable goods manufacturers’ shipments of nondefense aircraft and parts increased 6% in the first four months of 2011 compared to the same period in 2010. 12 both civil aerospace and defense aerospace companies continue to make strategic acquisitions to gain access to proprietary and cutting-edge technologies. MOG. fairness and solvency opinions for corporate acquisitions and divestitures. and obtaining liquidity for privately held business owners.2510 or grange@srr. and UTX Mid-Cap Commercial Aerospace companies include: BEAV. the continuing resolution and proposed cuts in defense spending have led to an increase in M&A activity. He has sold a number of aerospace companies with values from $10 million to $1 billion. TDY. ©2011 5 . GD. Non-U.0x 10. among other professionals. including Aerospace and Defense. He has extensive experience in both valuation and investment banking with broad experience advising owners of middle market private companies. He provides valuation and financial advisory services for a variety of purposes.S. FirstResearch Industry Profile. but accelerated by the first quarter of 2011. His expertise includes mergers & acquisitions. companies seeking access to the U. SPR. and SAI Large-Cap Commercial Aerospace companies include: GR.S.775.0x EV/EBITDA 8. Gregory P.com. HXL.com. PCP. Within the civil aerospace subsector. Irrespective of the challenges currently faced by the aerospace industry. TGI. charitable foundations. Since then.0x . and have even increased.0x Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 ‘06 ‘06 ‘07 ‘07 ‘07 ‘07 ‘08 ‘08 ‘08 ‘08 ‘09 ‘09 ‘09 ‘09 ‘10 ‘10 ‘10 ‘10 ‘11 ‘11 Defense Aerospace Large-Cap Civil Aerospace Mid-Cap Civil Aerospace Source: Capital IQ Defense Aerospace companies include: BA. ESL. going-private transactions. Mr. pricing metrics among civil aerospace companies have largely held up. TXT Valuation Metrics n n n As shown on the chart above. pricing multiples for publicly traded companies in both the civil aerospace and defense aerospace subsectors rebounded by the first quarter of 2010. as large primes are forced to make acquisitions to achieve growth in a government-spending environment where organic growth is hard to come by. HEI. boards of directors of public companies. COL. Range can be reached at +1. divestitures. Mr. LMT. the trend in pricing multiples mirrors the relative performance of the commercial aerospace and defense aerospace subsectors: U. Mr.0x 4.A. durable goods manufacturers’ shipments of military aircraft and parts declined 21% in the first four months of 2011 compared to the same period in 2010.

LLC and Monroe Capital Corporation Saint Jean Aero Microsemi Corp.97 n/a n/a 469..00 5. EnCore Composites Holdings.. (CATS:MDF) Zodiac Aerospace SA General Dynamics C4 Systems. Ltd. Emivest Aerospace Corporation SRA International. SkyWork Airlines AG PRV Aerospace.65 n/a n/a 17. (OTCPK:AMLJ) Mécanique Générale et Tôlerie de Précision and 30 H7 Integral Systems Inc.00 n/a 35. Site and Activities at Plan-Les-Ouates AML Communications Inc.r. Precision Castparts Corp.A. Vaupell.l. Inc. Satair A/S (CPSE:SAT) ZAO Gazpromneft-Aero Ducommun Technologies Forbes Analytic Software. Louis (SUS) Airport Vector Aerospace Corporation Eurocopter Holding SA Sensis Corporation Sigma Microsystems Private Limited Cirrus Aircraft Corporation Kazansky Vertoletny Zavod (RTS:KHEL) Korea Aerospace Industries Ltd.. Microtecnica S. Inc.50 21. Air Data Product Line Detection Systems Teledyne Continental Motors.00 2.98 6.11 32. Satellite Business in Rome Telematic Solutions S.00 n/a 30. Kyiv Aviant State Aviation Plant FOCAL Engenharia e Manutenção Ltda.. Dynamics Research Technologies.19 1. (NYSE:ATI) BBA Aviation plc (LSE:BBA) Kratos Defense & Security Solutions. EMS Technologies Inc. TAC Air.. Aero Quality Sales ZAO Fuel-Supply Company LaBarge Inc.00 Rheinmetall Italia S.. Inc. EADS NA Defense Security and Systems Solutions.00 n/a n/a 32. The KEYW Holding Corporation JSC PAO Inkar OJSC STAR 6 ©2011 . Inc.000. Inc.00 90. Aviation Water Heater Product Line High Performance Technologies.84 n/a n/a n/a n/a n/a n/a 530.p. Inc. AVITAT Boca Raton Inc. Inc. Evergreen Maintenance Center.00 n/a 300. Size ($USDmm) 60.90 n/a n/a n/a 12. Inc.p. Inc. JSC Nizhny Novgorod Aircraft Building Plant SOKOL Keltech. (NasdaqGS:MSCC) LLEDO INDUSTRIES Camber Corporation Goodrich Actuation Systems Limited Allegheny Technologies Inc. Alestis Aerospace SL.00 n/a 210. GE Aviation Systems LLC.52 n/a n/a 0.00 n/a 0. Inc. Inc. Ltd.06 n/a 41.A. S. RUAG Holding AG. Berne Wings AG Quality Forming. Inc. Inc. Ltd.Recent Transactions in the Aerospace Industry Target Acra Control Ltd.25 657.44 n/a n/a n/a n/a 14. (KOSE:A047810) Samal International LLC Saab AB Skanda Aerospace Private Limited China Aviation Industry General Aircraft Co. Tru-Form Unit Avio-Tech Ltd. Inc. Providence Equity Partners.40 819. Russian Helicopters JSC DIP Holdings Co. Private Investor Honeywell International Inc. Duro Felguera. Inc. LLC Moog Inc.A.76 200. Inc. Inc. ATI Ladish Co. Fortress Technologies. Assets at Spirit of St..26 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 10. Crossbow Technology. Inc. Relativity Capital.00 n/a Implied EV/EBITDA n/a n/a n/a n/a 10. OHB Sweden AB OHB AG (XTRA:OHB) NUCLEO cc Heath Tecna. Yava Jet Ltd. Executive Beechcraft. LLC Joint Stock Company United Aircraft Corporation (MICEX:UNAC) International Water-Guard Industries Inc.00 n/a 9. Aero-Instruments Company.70 143.56 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Close Date 7/28/2011 7/26/2011 7/22/2011 7/20/2011 7/20/2011 7/15/2011 7/13/2011 7/8/2011 7/5/2011 7/1/2011 6/30/2011 6/29/2011 6/29/2011 6/28/2011 6/28/2011 6/27/2011 6/23/2011 6/22/2011 6/20/2011 6/17/2011 6/15/2011 6/14/2011 6/14/2011 6/13/2011 6/12/2011 6/9/2011 6/7/2011 6/3/2011 6/3/2011 5/31/2011 5/31/2011 5/27/2011 5/17/2011 5/15/2011 5/13/2011 5/12/2011 5/9/2011 5/6/2011 5/6/2011 5/3/2011 5/2/2011 4/20/2011 4/19/2011 4/18/2011 4/12/2011 4/7/2011 4/4/2011 4/3/2011 4/1/2011 BAE Systems Composite Structures Inc. Inc Russell Plastics Technology Co. Metalcraft Technologies. Inc. Triumph Precision Castings Company Torque Capital Group LLC Executive Beechcraft. Inc.781. LLC Chemring Group plc AVIC International Holding Corporation ANTONOV ASTC Avio do Brasil Ltda.06 63. Inc.00 3...00 n/a 27. Inc. (NasdaqGS:KTOS) 220. Inc. Legacy Fuel Measurement Business SpaceAge Control. Carbon Fiberglass Components Plant Zhenshi Holding Group Co.00 186. Acquirer Curtiss-Wright Controls.

Inc.87 n/a n/a 4. KG Kazansky Vertoletny Zavod (RTS:KHEL) Sattva Aero Accessories and Systems Pvt.90 512. Inc. Inc.60 n/a n/a n/a n/a n/a n/a n/a n/a 10. LLC MT Aerospace AG Russian Helicopters JSC Sattva Group Size ($USDmm) 312. Glacier Energy Services Pilatus Aircraft Ltd.00 n/a n/a n/a 1.78 n/a n/a n/a 29. Inc. Inc.34 0. Ltd.41 n/a n/a n/a n/a n/a n/a 94. Private Investor Precision Aviation Group. Rutten Blue Aerospace. Gardner Aviation Specialist. Inc. Valair Kirkpatrick Avionics Todd Shipyards Corporation Aerotech Peissenberg GmbH & Co.Recent Transactions in the Aerospace Industry Continued Target Global Defense Technology & Systems. LLC Intrex Global Solutions Corporation JetGo International Pty. Inc TransDigm Group Inc.69 n/a 2.00 n/a n/a n/a 85. Emz Im V M Myasishcheva OAO Volvo Aero Norge AS Weaver Manufacturing.02 n/a n/a 13. Designed Metal Connections.00 n/a Implied EV/EBITDA 15. (NYSE:CW) Synectic Systems Group Ltd. Inc. Private Equity IHAG Holding Corp. Rösler Oberflächentechnik Gmbh HEICO Aerospace Holdings Corp.89 n/a n/a n/a 13. Persides Technology Limited The Hiller Group Incorporated S. Inc. Maven Capital Partners UK LLP. Inc.64 n/a n/a 12. (NasdaqGS:TSYS) Raytheon Space & Airborne Systems Finprombank OAO Behrman Capital Curtiss-Wright Corp. Inc. JSC Nizhny Novgorod Aircraft Building Plant SOKOL Aviastar-SP ZAO Hawk Corp.74 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 14.234. Inc.50 n/a Close Date 4/1/2011 3/31/2011 3/31/2011 3/30/2011 3/29/2011 3/28/2011 3/28/2011 3/16/2011 3/4/2011 3/3/2011 3/2/2011 3/2/2011 2/24/2011 2/17/2011 2/16/2011 2/15/2011 2/11/2011 2/10/2011 1/31/2011 1/31/2011 1/31/2011 1/28/2011 1/12/2011 1/10/2011 1/7/2011 1/4/2011 1/3/2011 1/1/2011 12/31/2010 12/31/2010 12/31/2010 12/31/2010 12/31/2010 12/29/2010 12/28/2010 12/21/2010 12/15/2010 12/13/2010 12/8/2010 12/7/2010 12/6/2010 12/3/2010 11/30/2010 11/30/2010 11/26/2010 11/23/2010 11/16/2010 Source: Capital IQ Kratos Defense & Security Solutions. Pankl Engine Systems. Irkut Corporation (MICEX:IRKT) Joint Stock Company United Aircraft Corporation (MICEX:UNAC) Carlisle Industrial Brake & Friction Private Investor Veritas Capital AbelConn. LLC Tyumenskie Motorostroiteli Joint-Stock Company Energogaz Ooo McKechnie Aerospace DE.411.12 815. Acquirer Ares Private Capital Group Joint Stock Company United Aircraft Corporation (MICEX:UNAC) Volvo Aero AB Synchronous Aerospace. JSC Nizhny Novgorod Aircraft Building Plant SOKOL ILC Dover. LLC Telair International Inc. World Fuel Services. Agregat JSC Air Methods Corp. (NasdaqGS:KTOS) 287. LLC TeleCommunication Systems Inc.25 0. Inc. and Sattva eTech Raytheon Applied Signal Technology.. Inc. Inc.00 n/a n/a n/a 8. Asset Management Company Russian Helicopters JSC Boeing Commercial Airplanes. Rostvertol PLC Rostvertol PLC Boeing Helena HK Fittings. (NasdaqGS:AIRM) Mad Catz Interactive Inc. Inc. Valair Aviation Vigor Industrial. Winner Aviation Corporation. Herley Industries.36 Ufa Engine Industry Union (RTS:UFMO) The United Defense Industry Corporation “Oboronprom” Trident Space & Defense.85 n/a n/a n/a n/a 15. LLC V Max Simulation Corporation Swissport International AG Skytronics. Inc. HJS Helicopters Ltd. Simmons & Company.P. OAO Voskhod Pavlovo Machine-Building Plan United Rotorcraft Solutions.34 n/a 8. Inc. Gradcheck Capital Aero Specialties. Ltd. Actuation Business TransDigm Group Incorporated (NYSE:TDG) M7 Aerospace L. (AMEX:MCZ) PAI Partners Phillips Service Industries. Enterprise Integration Group (Lockheed Martin) Airco Industries.63 n/a n/a n/a n/a n/a 2. Inc.64 1. Elbit Systems Of America. LP Predator Systems. Tyumenskie Motorostroiteli Joint-Stock Company Energogaz Ooo ©2011 7 . Pankl Racing Systems AG (WBAG:PARS) AGANA.A. Inc.90 n/a n/a 128.40 n/a 468.