Behrman Capital’s $475m exit: What ITT Inc.’s acquisition of kSARIA means for the industry

In a significant move within the aerospace and defense industry, Behrman Capital, a prominent private equity firm based in New York, has announced the sale of its portfolio company, kSARIA Holdings, to ITT Inc. The transaction, valued at approximately $475 million, marks a pivotal moment for both companies as they aim to strengthen their positions in the high-reliability connectivity sector.

Behrman Capital’s strategic exit from kSARIA

Founded in 2000, kSARIA Holdings has built a reputation as a leading producer and supplier of mission-critical connectivity solutions tailored for aerospace and defense markets. The company excels in delivering high-performance interconnect products and services that cater to critical applications such as avionics, sensors, communications, and networking. With its offerings, kSARIA supports crucial platforms used by defense prime contractors and commercial aerospace leaders.

Under the ownership of Behrman Capital, kSARIA has experienced substantial growth and market differentiation. The private equity firm, which acquired kSARIA in 2018, has played a crucial role in expanding the company’s capabilities through four strategic acquisitions and geographic expansion both domestically and internationally. These efforts have enhanced kSARIA’s standing as a key player in the high-reliability connectivity space, particularly for Mil/Aero customers.

Grant Behrman, Managing Partner at Behrman Capital, expressed pride in the company’s achievements during its tenure. He highlighted kSARIA’s remarkable growth and the successful execution of strategic initiatives. Behrman praised the company’s management, including Tony Christopher, for their innovative leadership and their role in positioning kSARIA for future success under ITT’s ownership.

The strategic value of the acquisition

Tony Christopher, CEO of kSARIA, acknowledged the instrumental role Behrman Capital played in the company’s development. He noted that Behrman’s strategic vision and meticulous approach to acquisitions significantly contributed to kSARIA’s ability to provide a comprehensive portfolio of highly customized connectivity solutions. These solutions meet the demanding requirements of mission-critical applications, reinforcing the company’s reputation for superior quality and performance.

The acquisition by ITT Inc., a major player in the industrial products and services sector, is set to close by the end of the third quarter of 2024. This move is expected to bolster ITT’s position in the aerospace and defense markets by integrating kSARIA’s advanced interconnect technologies and engineering expertise into its existing portfolio.

Financial and advisory details

In connection with this transaction, Guggenheim Securities, LLC and BMO Capital Markets Corp. acted as financial advisors for kSARIA, while Goodwin Procter LLP provided legal counsel. These advisors have played a critical role in facilitating the sale and ensuring a smooth transition of ownership.

As kSARIA prepares to join ITT, the company continues to be recognized for its unmatched capabilities in providing end-to-end interconnect solutions. Whether through optical fiber, copper, RF, or hybrid cable assemblies, kSARIA remains at the forefront of technological innovation, offering robust solutions designed to meet the highest standards of performance and reliability in mission-critical environments.