Behrman Capital to Sell Portfolio Company kSARIA to ITT for $475 Million
Behrman Capital has agreed to sell its portfolio company kSARIA Holdings to ITT Inc. (NYSE: ITT) for approximately $475 million. kSARIA is a leading producer of mission-critical connectivity solutions for aerospace and defense markets. The company offers ruggedized fiber optic and electrical solutions with complementary services, holding sole or primary source positions for most of its products.
Since Behrman's acquisition in 2018, kSARIA has pursued strategic initiatives including four add-on acquisitions, geographic expansion, and securing supplier positions on high-growth, next-generation defense and aerospace platforms. The transaction is expected to close by the end of Q3 2024, positioning kSARIA for further growth under ITT's ownership.
Behrman Capital ha concordato di vendere la sua società in portafoglio kSARIA Holdings a ITT Inc. (NYSE: ITT) per circa $475 milioni. kSARIA è un produttore leader di soluzioni di connettività mission-critical per i mercati aerospaziale e della difesa. L'azienda offre soluzioni ottiche e elettriche robustizzate con servizi complementari, occupando posizioni di fornitore unico o principale per la maggior parte dei suoi prodotti.
Dalla acquisizione da parte di Behrman nel 2018, kSARIA ha perseguito iniziative strategiche tra cui quattro acquisizioni aggiuntive, espansione geografica e la messa in sicurezza di posizioni di fornitore su piattaforme di difesa e aerospaziale di nuova generazione in rapida crescita. Si prevede che la transazione si chiuda entro la fine del Q3 2024, posizionando kSARIA per una ulteriore crescita sotto la proprietà di ITT.
Behrman Capital ha acordado vender su empresa en cartera kSARIA Holdings a ITT Inc. (NYSE: ITT) por aproximadamente $475 millones. kSARIA es un productor líder de soluciones de conectividad críticas para misiones en los mercados aeroespacial y de defensa. La empresa ofrece soluciones ópticas y eléctricas robustas con servicios complementarios, ocupando posiciones de proveedor único o principal para la mayoría de sus productos.
Desde la adquisición de Behrman en 2018, kSARIA ha perseguido iniciativas estratégicas que incluyen cuatro adquisiciones adicionales, expansión geográfica y asegurar posiciones de proveedor en plataformas de defensa y aeroespaciales de nueva generación con alto crecimiento. Se espera que la transacción se cierre a finales del Q3 2024, posicionando a kSARIA para un mayor crecimiento bajo la propiedad de ITT.
Behrman Capital은 자회사인 kSARIA Holdings를 ITT Inc. (NYSE: ITT)에 약 $475 백만에 판매하기로 합의했습니다. kSARIA는 항공우주 및 방산 시장을 위한 미션 크리티컬 커넥티비티 솔루션의 선도적인 생산업체입니다. 이 회사는 강화된 섬유 광학 및 전기 솔루션과 보완 서비스를 제공하며, 대부분의 제품에 대해 단독 또는 주요 공급업체 위치를 차지하고 있습니다.
Behrman이 2018년에 인수한 이후, kSARIA는 네 건의 추가 인수, 지리적 확장, 고성장 차세대 방산 및 항공우주 플랫폼에 대한 공급업체 위치 확보 등 전략적 이니셔티브를 추진해왔습니다. 이 거래는 2024년 3분기(Q3) 말까지 마무리될 것으로 예상되며, ITT의 소유 하에 kSARIA의 추가 성장을 위한 포지셔닝이 될 것입니다.
Behrman Capital a accepté de vendre sa société de portefeuille kSARIA Holdings à ITT Inc. (NYSE: ITT) pour environ 475 millions de dollars. kSARIA est un producteur leader de solutions de connectivité critiques pour les secteurs de l'aérospatial et de la défense. La société propose des solutions en fibre optique et électriques renforcées avec des services complémentaires, occupant des positions de fournisseur unique ou principal pour la plupart de ses produits.
Depuis l'acquisition par Behrman en 2018, kSARIA a poursuivi des initiatives stratégiques, notamment quatre acquisitions supplémentaires, une expansion géographique et la sécurisation de positions de fournisseur sur des plateformes de défense et aérospatiales de nouvelle génération à forte croissance. La transaction devrait être conclue d'ici la fin du T3 2024, positionnant kSARIA pour une croissance supplémentaire sous la propriété d'ITT.
Behrman Capital hat zugestimmt, sein Portfoliounternehmen kSARIA Holdings für etwa 475 Millionen US-Dollar an ITT Inc. (NYSE: ITT) zu verkaufen. kSARIA ist ein führender Hersteller von mission-kritischen Konnektivitätslösungen für die Luft- und Raumfahrt- sowie Verteidigungsmärkte. Das Unternehmen bietet robuste Glasfaser- und elektrische Lösungen mit ergänzenden Dienstleistungen an und hat für die meisten seiner Produkte eine alleinige oder primäre Quellenposition inne.
Seit der Übernahme durch Behrman im Jahr 2018 hat kSARIA strategische Initiativen verfolgt, die vier Zusatzakquisitionen, geografische Expansion und die Sicherung von Lieferantenpositionen auf wachstumsstarken, next-Generation Verteidigungs- und Luft- und Raumfahrtplattformen umfassen. Die Transaktion wird voraussichtlich bis Ende Q3 2024 abgeschlossen sein, was kSARIA für weiteres Wachstum unter der Eigentümerschaft von ITT positioniert.
- Acquisition deal valued at $475 million, indicating strong market position
- kSARIA holds sole or primary source positions for most of its products
- Company has achieved supplier positions on high-growth, next-generation defense and aerospace platforms
- Strategic growth through four add-on acquisitions and geographic expansion
- None.
Insights
The acquisition of kSARIA by ITT for
From a financial perspective, the transaction value of
For ITT, this acquisition represents a strategic move to expand its portfolio in the high-reliability connectivity market. It's likely to enhance ITT's offerings in the aerospace and defense sectors, potentially leading to increased market share and revenue growth. Investors should watch for potential synergies and how quickly ITT can integrate kSARIA's operations to realize value from this acquisition.
The transaction's expected closure by Q3 2024 suggests a relatively smooth regulatory approval process, which is positive for both parties. However, investors should monitor any potential hurdles that could delay the closing.
Overall, this acquisition underscores the consolidation trend in the aerospace and defense supply chain, as larger players seek to bolster their technological capabilities and market positions through strategic acquisitions.
The acquisition of kSARIA by ITT is a strategic move that underscores the critical importance of advanced connectivity solutions in the aerospace and defense sectors. kSARIA's expertise in both fiber optic and electrical interconnect technologies positions it uniquely in the market, addressing the growing demand for robust, lightweight and high-performance communication systems in modern aircraft and defense platforms.
kSARIA's sole or primary source positions on various platforms indicate strong customer relationships and a competitive moat. This is particularly valuable in the aerospace and defense industries, where long-term contracts and high switching costs are common. ITT's acquisition will likely strengthen these relationships and potentially lead to expanded opportunities across its broader portfolio.
The emphasis on kSARIA's ability to deliver products that function in harsh environments is crucial. As aerospace and defense systems become more sophisticated, the demand for reliable connectivity solutions that can withstand extreme conditions is increasing. This capability aligns well with industry trends towards more electric aircraft and advanced defense systems.
Looking ahead, the integration of kSARIA into ITT could accelerate innovation in connectivity solutions, potentially leading to new product developments that address emerging challenges in aerospace and defense communications. Investors should watch for announcements regarding new contract wins or expanded roles on next-generation platforms as indicators of the acquisition's success.
The acquisition of kSARIA by ITT for
- Private Equity Exit: Behrman Capital's successful exit after a 6-year holding period demonstrates the value creation potential in the aerospace and defense sector for private equity firms. The firm's strategy of pursuing add-on acquisitions and expanding kSARIA's capabilities has likely contributed to a favorable return on investment.
- Strategic Buyer Appeal: ITT's acquisition of kSARIA highlights the attractiveness of specialized technology providers to larger, diversified industrial companies. This trend is driven by the need for established players to access cutting-edge technologies and expand their offerings in high-growth markets.
- Market Consolidation: The transaction contributes to the ongoing consolidation in the aerospace and defense supply chain, as larger companies seek to strengthen their competitive positions through strategic acquisitions.
- Valuation Considerations: While specific financial details are not disclosed, the
$475 million price tag suggests a premium valuation, likely reflecting kSARIA's strong market position and growth prospects. This could set a benchmark for valuations of similar companies in the sector.
The expected closing timeline (before the end of Q3 2024) indicates a relatively straightforward regulatory approval process, which is positive for deal certainty. However, investors should monitor any potential regulatory hurdles or closing conditions that could impact the transaction's completion.
Founded in 2000, kSARIA brings extensive process technology and engineering expertise to the high-reliability connectivity industry, offering interconnect products and services with superior performance, quality and value to the Mil/Aero end market. The Company's products support applications for avionics, sensors, communications and networking on coveted platforms with defense prime contractors and commercial aerospace leaders. The majority of the Company's positions are sole or primary source. kSARIA is also the only provider in its space offering a combination of ruggedized fiber optic and electrical solutions with complementary service offerings. kSARIA's proprietary engineering and manufacturing capabilities in both fiber and electrical interconnect technologies enable it to deliver mission-critical, engineered products which must survive and function in harsh environments.
"We are incredibly proud of kSARIA's remarkable growth and achievements during our ownership," said Grant Behrman, Managing Partner at Behrman Capital. "The four add-on acquisitions consummated by the Company have created a highly differentiated market leader in high-reliability connectivity solutions for Mil/Aero customers. We believe the business is exceptionally well-positioned for further growth under its new ownership and we commend Tony Christopher and the management team for their innovative leadership, wishing them success in the future as part of ITT."
After partnering with the kSARIA management team in 2018 to acquire the Company, Behrman has pursued a wide range of strategic initiatives. These include four strategic add-on acquisitions, geographic expansion in the US and internationally, and the achievement of supplier positions on high-growth, next-generation defense and aerospace platforms that will have decades of longevity.
"Behrman Capital has been an excellent partner to the kSARIA team," said Tony Christopher, kSARIA's Chief Executive Officer. "Their vision for the Company's growth strategy and approach to due diligence on acquisition candidates added a tremendous amount of strategic value that enabled us to offer an increasingly deep portfolio of highly customized connectivity solutions to our customers, who require the highest quality products to meet their mission-critical needs."
The transaction is expected to close before the end of the third quarter of 2024.
For kSARIA, Guggenheim Securities, LLC and BMO Capital Markets Corp. served as financial advisors and Goodwin Procter LLP served as legal advisor.
About Behrman Capital
Based in
About kSARIA
kSARIA, based in
Contact
Ross Lovern / Nathaniel Shahan
Kekst CNC
ross.lovern@kekstcnc.com / nathaniel.shahan@kekstcnc.com
212-521-4800
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SOURCE Behrman Capital
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