Novaria

KKR announced Nov. 25 it has entered into an agreement to acquire Novaria Group, a leading manufacturer of specialty aerospace hardware based in Fort Worth, from Rosewood Private Investments and Tailwind Advisors. The transaction, the financial details of which were not disclosed, is being funded through KKR’s Americas XII Fund.

Novaria Group is an independent supplier of complex, highly engineered components and specialty processes for the aerospace and defense industry. Founded in 2011 by CEO Bryan Perkins, Novaria Group aims to improve the aerospace supply chain with an emphasis on better technology, processes and infrastructure. Today, the company serves more than 500 customers.

“Since our founding, Novaria Group has always prided itself on being a customer-focused supplier of aerospace parts. Importantly, KKR shares this vision of improving the aerospace supply chain through delivering value to our customers and, through their innovative employee ownership and engagement model, extending the shareholder value we will create through this business strategy to our employees,” said Bryan Perkins, Novaria Group CEO.

“Our team has been in search of a differentiated platform in the commercial aerospace sector and are thrilled to have found our partner in Bryan Perkins and his team at Novaria Group,” said Josh Weisenbeck, KKR Member and senior leader on KKR’s Industrials investment team. “We look forward to working together to scale the company and build an aerospace engineered parts supplier that is uniquely focused on excellence in quality and customer service.”

Since 2011, KKR’s Industrials team has focused on employee engagement as a key driver in building stronger businesses. The strategy’s cornerstone has been to allow all employees to take part in the benefits of ownership by granting them the opportunity to participate in the equity return alongside KKR. Beyond sharing ownership, KKR also supports employee engagement by investing in training across multiple functional areas and by partnering with the workforce to give back to the community.

“We are extremely excited to support Novaria Group on the next leg of its journey. Similar to what we have done at KKR’s other industrials portfolio companies in the U.S., we plan to implement a broad-based employee ownership and engagement model at Novaria Group to recognize the employees and ultimately position the company to better serve its customers,” said Pete Stavros, KKR Member and Co-Head of Americas Private Equity.

“We’ve enjoyed working with the Novaria management team over the past five years. Since our initial investment in Novaria, we have supported numerous additional acquisitions and substantial organic growth. We are thrilled that Bryan and his team have found a new equity partner to take Novaria to even greater achievement,” said G.T. Barden, Rosewood Private Investments.

This transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to close by 1Q 2020. Fully committed financing has been led by lead arrangers KKR Capital Markets and RBC Capital Markets LLC. KKR was advised in the transaction by Kirkland & Ellis LLP, Deloitte and AeroDynamic Advisory. Novaria Group was advised in the transaction by Lazard, Riveron, and Foley & Lardner LLP.

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