– Arcline to acquire Novaria Group in an all-cash transaction valued at $2.2 billion.
– Novaria Group, founded in 2011 by Bryan Perkins, provides engineered aerospace components and specialty processes to 3,000+ customers, with products on virtually every Boeing and Airbus commercial aircraft.
– KKR initially invested in 2020; since then, Novaria has tripled in size and completed 13 strategic add-on acquisitions, expanding its product portfolio and manufacturing footprint.
– Novaria currently employs over 1,600 people across the U.S.
– Operational improvements under KKR include a 60% reduction in total recordable incident rate, a nearly 20% reduction in voluntary turnover, and top quartile ranking on the Ownership Works index.
– Employees will receive cash payouts upon closing as part of the employee ownership program.
– Joshua Weisenbeck, Partner, KKR: “We are proud of how we built Novaria in partnership with the management team into a resilient aerospace and defense supplier that benefits its employees and customers. This milestone was enabled by an ownership mindset, operational excellence, and putting our people first, and we are pleased to see all employees share in the value they helped create.”
– Arcline: “Novaria has a proven track record of identifying, acquiring and growing niche aerospace product businesses that share a common culture rooted in innovation and customer service. We’re excited to partner with Bryan and the entire Novaria team to continue executing this strategy.”
– Bryan Perkins, CEO of Novaria Group: “This transaction represents the success of our long-standing partnership with KKR and the dedication of the Novaria team. Novaria’s focus on customer partnership within the aerospace industry has driven remarkable results, and this outcome is a reflection of the collective effort and commitment of our colleagues.”
– Advisors are Guggenheim Securities (financial) and Ropes & Gray LLP and Paul Hastings LLP (legal) for Arcline, and Morgan Stanley & Co. LLC (financial) and Kirkland & Ellis (legal) for KKR and Novaria.
– The transaction is subject to customary closing conditions and regulatory approvals.
