KKR has agreed to sell its aerospace and defence parts business, Novaria Group, which supplies components and manufacturing processes for aircraft, drones, and submersibles. to Arcline Investment Management in a $2.2bn deal.
KKR acquired the Fort Worth, Texas-based group in early 2020 and expanded the business by adding 13 companies under its ownership, according to KKR partner Joshua Weisenbeck. The sale comes amid a supportive environment for aerospace and defence transactions, boosted by rising aircraft production, the lifting of Boeing’s production cap, and increased global military spending driven by geopolitical tensions such as the war in Ukraine.
Novaria CEO Bryan Perkins described the deal as “the success of our long-standing partnership with KKR and the dedication of the Novaria team”.
Weisenbeck highlighted that the transaction reflects a revival in sponsor-to-sponsor private equity deals, noting that while exit volumes have risen recently, overall deal values remain lower than previous quarters. KKR also runs an employee equity program across its portfolio, meaning Novaria staff will receive cash proceeds upon the deal’s closing – a practice the firm credits with boosting productivity, revenue, and retention.
