KKR is selling Novaria Group, a supplier of engineered aerospace and defense components, to Arcline Investment Management for ~$2.2 billion.
Novaria’s products serve over 3,000 customers, including major aerospace OEMs, and are used in aircraft, drones, and even submersibles.
According to Arcline, Novaria has grown significantly under KKR (13 add-on acquisitions since 2020) and has tripled in size.
All of Novaria’s ~1,600 U.S.-based employees will receive cash payouts upon closing, under its employee-ownership program.
From KKR’s perspective, this deal underscores a “reopening” of private equity sponsor-to-sponsor M&A in the aerospace/defense supply chain.
