Veritas Capital Completes Acquisition of Sequa from Carlyle

Rhea-AI Summary

Veritas Capital has successfully acquired Sequa Corporation, the parent company of Chromalloy, from Carlyle, marking a strategic move in the aerospace sector. Chromalloy is renowned for its aftermarket services for aircraft engines and gas turbines, boasting over 70 years of expertise. This partnership aims to leverage Veritas's experience in both commercial and military aerospace markets to enhance Chromalloy's growth and expand its proprietary LifeX® solutions. The deal reflects a commitment to continued investment in critical engine technology globally.

Positive

• Veritas strengthens its portfolio with the acquisition of Chromalloy, enhancing its presence in the aerospace sector.
• Chromalloy's established market position and engineering capabilities offer substantial growth potential.
• The acquisition is expected to accelerate Chromalloy's investment in proprietary LifeX® solutions, driving revenue growth.

Negative

• None.

NEW YORK & PALM BEACH GARDENS, Fla.--(BUSINESS WIRE)-- Veritas Capital (“Veritas”), a leading technology and government investment firm, today announced that an affiliate of Veritas has completed the acquisition of Sequa Corporation (“Sequa”), parent company of Chromalloy, from funds managed by global investment firm Carlyle (NASDAQ: CG).

Sequa, through its subsidiary Chromalloy, is a global technology company and a leading solutions provider for aircraft engines and gas turbines. For over 70 years, Chromalloy’s solutions have safely and reliably extended the life of aircraft engines and gas turbines, improving the economics of flight and power generation. Chromalloy possesses distinctive engine and turbine component design and development expertise as well as advanced engineering capabilities that support proprietary component solutions.

“We look forward to partnering with Veritas and leveraging their longstanding experience in both the commercial and military aerospace markets to accelerate Chromalloy’s next phase of growth,” said Brian Costa, Chief Executive Officer of Chromalloy. “The transaction marks an exciting new chapter for Chromalloy and provides an opportunity to build upon our differentiated capability set and continue investing in proprietary LifeX® solutions to drive value for our global customer base.”

“Chromalloy’s differentiated value proposition, deep engineering capabilities, and highly technical employees have positioned the business as a leader in the engine aftermarket,” said Ramzi Musallam, Chief Executive Officer and Managing Partner of Veritas. “We are excited to welcome Chromalloy to the Veritas portfolio and partner with the Chromalloy team to continue delivering critical engine technology and solutions to customers around the world.”

Evercore and BofA Securities acted as financial advisors and Latham & Watkins LLP served as legal counsel to Sequa Corporation in connection with the transaction. Gibson, Dunn & Crutcher LLP and Covington & Burling LLP served as legal counsel to Veritas.

About Chromalloy

Chromalloy provides the airline industry with a broad range of aftermarket services and ranks as the leading independent supplier of advanced repairs for jet engine parts. Chromalloy operates around the world and around the clock, providing airlines with timely, cost-effective, and proven repairs for turbine airfoils and other critical engine parts – repairs that extend the life of the parts and drive down engine maintenance costs. Chromalloy also serves the industrial and gas turbine market, as well as the military market. Sequa Corporation is the parent company of Chromalloy. For additional information, visit www.chromalloy.com.

About Veritas Capital

Veritas is a longstanding technology investor with over $40 billion of assets under management and a focus on companies operating at the intersection of technology and government. The firm invests in companies that provide critical products, software, and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means.

Leveraging technology to make a positive impact across vitally important areas, such as healthcare, education, and national security, is core to the firm. Veritas is a proud steward of national assets, improving the quality of healthcare while reducing cost, advancing our educational system, and protecting our nation and allies. For more information, visit www.veritascapital.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221213005448/en/

MEDIA

For Chromalloy:

Natalie Wills

natalie_wills@sequa.com

For Veritas:

Jenny Gore / Julie Rudnick / Kevin Siegel

VeritasCapital@fgsglobal.com

Source: Veritas Capital

FAQ

What was the reason for Veritas Capital's acquisition of Sequa Corporation?

The acquisition aims to leverage Veritas's expertise to enhance Chromalloy's growth in the aerospace sector.

What impact will the acquisition of Chromalloy have on Veritas Capital?

The acquisition will strengthen Veritas's position in the aerospace market and provide opportunities for growth through investment in Chromalloy.

When was the acquisition of Sequa Corporation completed?

The acquisition was announced recently but the specific closing date is not mentioned.

What is Chromalloy known for?

Chromalloy is recognized for its aftermarket services, particularly advanced repairs for aircraft engines and gas turbines.

Who was involved in the financial advisory for the acquisition of Sequa Corporation?

Evercore and BofA Securities acted as financial advisors for the acquisition.