KKR sells aerospace parts company Novaria Group to Arcline

The news: KKR said that it has struck a deal to sell aerospace and defence parts maker Novaria Group to PE firm Arcline Investment Management for USD2.2 billion ($3.37 billion).

The context: The transaction comes as the volume of aerospace and defence deals continues to rise on the back of increased spending on national security, growth in aircraft production and the removal of a production cap on Boeing, KKR partner Joshua Weisenbeck told Reuter.

“We are proud of how we built Novaria in partnership with the management team into a resilient aerospace and defense supplier that benefits its employees and customers,” Weisenbeck said in a statement. “This milestone was enabled by an ownership mindset, operational excellence, and putting our people first, and we are pleased to see all employees share in the value they helped create.”

The numbers: KKR said that since its initial investment in 2020, Novaria has more than tripled in size, completing 13 strategic add-on acquisitions that broadened its product portfolio and enhanced its manufacturing footprint. Novaria today serves more than 3,000 customers globally and employs over 1,600 people across the US.