The investment firm KKR [KKR] on Monday said it has agreed to acquire the holding company Novaria Group, a supplier of precision aerospace components to commercial and defense customers.
Terms of the deal, which is expected to close by the first quarter of 2020 pending regulatory approvals, were not disclosed. Novaria Group is based in Texas and is owned by Rosewood Private Investments and Tailwind Advisors.
“Our team has been in search of a differentiated platform in the commercial aerospace sector and are thrilled to have found our partner in Bryan Perkins and his team at Novaria Group,” Josh Weisenbeck, KKR member and senior leader on the KKR’s Industrials investment team, said in a statement. “We look forward to working together to scale the company and build an aerospace engineered parts supplier that is uniquely focused on excellence in quality and customer service.”
Novaria Group’s sales are not disclosed. The company’s revenue is about 80 percent commercial and 20 percent defense, a Novaria Group spokeswoman told Defense Daily. The company has about 1,000 employees in 10 locations in the U.S., she said. It also serves more than 500 customers.
Novaria Group is made up of seven divisions: Acra Aerospace, ESNA, Ferco Aerospace, L&E Engineering, Space-Lok, Weatherford Aerospace, and V&M Aerospace. The group is led by CEO Bryan Perkins.
KKR said it will implement employee ownership at Novaria Group. KKR is funding the deal through its Americas II Fund.
KKRs advisers on the deal are Kirkland & Ellis LLP, Deloitte and AeroDynamic Advisory. Novaria Group’s advisers include Lazard, Riveron, and Foley & Lardner LLP.