KKR Sells Aerospace Parts Firm Novaria Group for $2.2 Billion
KKR has agreed to sell Novaria Group, a Texas-based aerospace and defense equipment manufacturer, to Arcline Investment Management for $2.2 billion. The deal marks a strategic exit for KKR, which acquired Novaria in 2020 during the pandemic's low-interest-rate environment. Novaria supplies critical components for commercial and military aircraft, drones, and submersible vehicles—a sector poised for growth as global defense spending rises and aviation recovers from COVID-19 disruptions.
Private equity firms like KKR have faced profitability challenges this year, struggling to offload assets acquired during the cheap-money era. KKR's executives recently downplayed these concerns during earnings calls, emphasizing long-term value creation over short-term market fluctuations.
