After a 4.5 year hold, Behrman Capital has agreed to sell its portfolio company kSARIA Holdings to ITT for $475 million.
kSARIA is a provider of interconnect products and services used in avionics, sensors, communications, and networking applications, including fiber optic and electrical cable assemblies and harnesses, RF and microwave assemblies, and flexible metal conduit assemblies.
kSARIA also offers a range of services including design, fabrication, installation, training, and logistics management.
Behrman acquired kSARIA in October 2018 and closed four add-on acquisitions: Compulink Cable Assemblies, a Florida-based maker of high-reliability cable assemblies and harnesses used in aerospace and defense applications (October 2019); Co-Operative Industries Aerospace & Defense, a Texas-based manufacturer of electrical wiring harnesses and ignition leads (October 2019); Top Flite Components, a Florida-based maker of electrical interconnect products (August 2022); and Charles E. Gillman Company, an Arizona-based manufacturer of high-reliability electrical cables and harnesses used in military ground vehicles and other ruggedized applications (February 2024).
Today, kSARIA has $175 million in annual revenue, approximately 1,000 employees, and 6 manufacturing facilities in North America. kSARIA, led by CEO Tony Christopher, was founded in 2000 and is headquartered 45 miles north of Boston in Hudson, New Hampshire.
“Behrman Capital has been an excellent partner to the kSARIA team,” said Mr. Christopher. “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.”
“We are incredibly proud of kSARIA’s remarkable growth and achievements during our ownership,” said Grant Behrman, a 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.”
Behrman Capital invests in management buyouts, leveraged buildups, and recapitalizations of established growth businesses that are active in defense and aerospace, healthcare, and specialty industrial sectors. New York City and San Francisco-based Behrman Capital has raised more than $4 billion since its founding in 1991 and is currently investing out of its seventh fund.
ITT will add the operations of kSARIA to its Connect & Control Technologies (CCT) group. “kSARIA is a great addition to our CCT connector portfolio. The company has leading positions on marquee defense programs and long-standing relationships with its customers,” said Luca Savi, the CEO of ITT. “kSARIA has a proven history of high-teens organic growth at attractive EBITDA margins, and multiple tailwinds to drive long-term sustainable growth, including defense modernization. Like ITT, kSARIA develops customized solutions for harsh environments, which are highly complementary to our existing connector portfolio. kSARIA is also uniquely positioned to capitalize on the industry transition from electrical to fiber required for high bandwidth data transmission and weight reduction.”
ITT (NYSE: ITT) is a diversified manufacturing company specializing in components used in transportation, industrial, and aerospace applications, including pumps, valves, monitoring and control systems, shock absorbers, brake components, and connectors. ITT was founded in 1920 and is headquartered in Stamford, Connecticut. The company had annual revenue of $3.3 billion in 2023.
The sale of kSARIA is expected to close by the end of the third quarter of 2024.
© 2024 Private Equity Professional | August 6, 2024
