QuEST Global expands in supply chain services for the aerospace industry

/ July 14, 2019/ Aerospace, India, M&As (small under $50m in revenues), QuEST, Singapore, US

We missed an important acquisition that QuEST Global announced at the end of June. QuEST has acquired Dakota Moon Enterprises (DME).

DME is headquartered in Henderson, Nevada and mostly provides supply chain services to the aerospace industry. The company offers program management services, and activities related to both the supplier side (recovery and development management) and procurement side, along with staffing. The company has offices in Seattle (the home of Boeing), and in Savannah, GA, (where General Dynamics’ Gulfstream Aerospace is headquartered).

The acquisition is a logical extension of the capabilities of QuEST Global in the aerospace sector. The challenge of both Boeing and Airbus is production, not aircraft design. DME brings precious skills in supply chain, an adjacent sector to production.

It is unclear what the size of DME is. The company claims 1,000 consultants but its LinkedIn profile suggests less than 200. The difference may come from the staffing activity. We will try to look into this but we are guessing DME’s headcount is probably around 100.

DME brings capabilities that are outside of ER&D services. If the company is indeed small, then the transaction is a nice tuck-in acquisition. If its headcount is 1,000, then, it probably brings some scale in a service type that is outside of the core activity of QuEST Global.