Behrman Capital to Sell Portfolio Company kSARIA to ITT for $475 Million

Rhea-AI Summary

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.

Positive

• 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

Negative

• None.

NEW YORK, Aug. 1, 2024 /PRNewswire/ -- Behrman Capital, a private equity investment firm based in New York, today announced that it has entered into a definitive agreement to sell its portfolio company kSARIA Holdings ("kSARIA" or "the company"), a leading producer and supplier of mission-critical connectivity solutions for the aerospace and defense end markets, to ITT Inc. ("ITT", NYSE: ITT) in a transaction valued at approximately $475 million.

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 New York City, Behrman Capital was founded in 1991 by Grant G. and Darryl G. Behrman. The firm invests in management buyouts, leveraged buildups and recapitalizations of established growth businesses. The company's investments are focused in three industries: Defense and Aerospace, Healthcare, and Specialty Industrials. The firm has raised $4.1 billion since inception and is currently investing out of its seventh fund. For more information, please visit http://www.behrmancap.com.

About kSARIA

kSARIA, based in Hudson, New Hampshire, offers complete interconnect solutions for mission critical applications with unsurpassed quality and performance. kSARIA offers unmatched advantages for all aspects of Mil/Aero connectivity solutions from cable assembly design, connector products, fabrication, installation, training, and logistics management. Whether it is optical fiber, copper, RF or hybrid cable assemblies, kSARIA has the technology, expertise, and an end-to-end approach to optimize solutions for customers. For more information, please visit www.ksaria.com.

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

FAQ

What is the acquisition price for kSARIA by ITT (NYSE: ITT)?

ITT (NYSE: ITT) is acquiring kSARIA for approximately $475 million.

When is the kSARIA acquisition by ITT (NYSE: ITT) expected to close?

The acquisition is expected to close before the end of the third quarter of 2024.

What are kSARIA's main products and target markets?

kSARIA produces mission-critical connectivity solutions, including ruggedized fiber optic and electrical solutions, for the aerospace and defense markets.

How many acquisitions has kSARIA made under Behrman Capital's ownership?

kSARIA has made four strategic add-on acquisitions under Behrman Capital's ownership since 2018.