Veritas Capital buys Chromalloy from Carlyle for $1.6 billion – sources

Sep 2 (Reuters) – Private equity firm Veritas Capital Fund Management LLC has agreed to buy aircraft parts maker Chromalloy Gas Turbine LLC from Carlyle Group Inc (CG.O) for more than $1.6 billion. dollars, debt included, according to people familiar with the matter. .

The deal could be announced as early as Tuesday, said the sources, who requested anonymity because the talks are confidential.

Chromalloy, based in Palm Beach Gardens, Florida, is the only remaining business of Sequa Corporation, which Carlyle acquired in 2007.

Carlyle and Veritas did not immediately respond to requests for comment.

Founded in 1950, Chromalloy manufactures and services engine turbines and other similar machinery used in the aviation, energy and defense industries. Chromalloy was acquired by Sun Chemical in 1986 and the combined company was renamed Sequa Corporation.

Chromalloy will be Veritas Capital’s latest acquisition in the aerospace and defense sector. In 2015, Veritas acquired aircraft maintenance company StandardAero Aviation for approximately $2 billion and sold it to Carlyle for over $5 billion in 2018. Veritas sold engineering company Alion Science and Technology to Huntington Ingalls Industries (HII.N) for $1.65 billion in cash in 2021.

New York-based Veritas manages more than $40 billion in assets across technology, engineering services, aerospace and defense.

Reporting by Chibuike Oguh in New York and Mike Stone in Washington Editing by Matthew Lewis

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