Veritas Capital to Acquire Sequa from Carlyle
September 15 2022 - 8:00AM
Business Wire
Veritas Capital (“Veritas”), a leading technology and government
investment firm, announced today that an affiliate of Veritas has
entered into a definitive agreement to acquire Sequa Corporation
(“Sequa”), parent company of Chromalloy (“Chromalloy”), from funds
managed by global investment firm Carlyle (NASDAQ: CG). Financial
terms of the transaction were not disclosed.
Headquartered in Palm Beach Gardens, FL, Sequa, through its
subsidiary Chromalloy, is a global technology company and a leading
solutions provider for aircraft engines and gas turbines. For over
70 years, Chromalloy’s solutions have safely and reliably extended
the life of aircraft engines and gas turbines, improving the
economics of flight and power generation. Chromalloy possesses
distinctive engine and turbine component design and development
expertise as well as advanced engineering capabilities that support
proprietary component solutions. These proprietary parts and
repairs are supported by Chromalloy’s extensive internal value
chain including investment castings, advanced coatings, and
precision machining. Chromalloy is Sequa’s only remaining business,
following the sale of its Precoat Metals business to AZZ Inc.
(NYSE: AZZ) earlier this year.
“Chromalloy has emerged as an industry leader by leveraging
technology and innovation to drive a highly unique value
proposition for customers,” said Ramzi Musallam, Chief Executive
Officer and Managing Partner of Veritas. “We are thrilled to
partner with Brian and the entire Chromalloy team, who have a
proven track record of delivering differentiated solutions to the
global engine ecosystem. Together, we are excited to continue
investing in distinctive technology and deepening Chromalloy’s
relationships with both existing and new customers.”
Brian Costa, President of Chromalloy, commented, “We are honored
to partner with Veritas, and we look forward to accelerating our
business under their ownership. Veritas believes in our strategy
and the long-term growth potential of our business enabled by our
proprietary LifeX® solutions. We are ready to work with Veritas to
continue delivering world-class solutions and unmatched value to
our customers around the world.”
“Chromalloy is well-positioned for growth, and we are excited
for the future of the business with Veritas,” said Tom Mepham,
Chief Executive Officer of Sequa. “We are thankful to the team at
Carlyle for their tremendous partnership over the years. With their
support, we invested to develop leading capabilities and expanded
our relationships with customers, both of which were instrumental
in leading to a successful business transformation and future
opportunities. We are pleased that Veritas recognizes the
tremendous value and potential of the Chromalloy business.”
The transaction is expected to close in the fourth quarter of
2022.
Advisors Evercore and BofA Securities acted as financial
advisors and Latham & Watkins LLP served as legal counsel to
Sequa Corporation in connection with the transaction. Gibson, Dunn
& Crutcher LLP and Covington & Burling LLP served as legal
counsel to Veritas.
About Sequa/Chromalloy Chromalloy provides the airline
industry with a broad range of aftermarket services and ranks as
the leading independent supplier of advanced repairs for jet engine
parts. Chromalloy operates around the world and around the clock,
providing airlines with timely, cost-effective, and proven repairs
for turbine airfoils and other critical engine parts – repairs that
extend the life of the parts and drive down engine maintenance
costs. Chromalloy also serves the industrial and gas turbine
market, as well as the military market. Sequa Corporation is the
parent company of Chromalloy. For additional information, visit
www.chromalloy.com.
About Veritas Capital Veritas is a longstanding
technology investor with a focus on companies operating at the
intersection of technology and government. The firm invests in
companies that provide critical products, software, and services,
primarily technology and technology-enabled solutions, to
government and commercial customers worldwide. Veritas seeks to
create value by strategically transforming the companies in which
it invests through organic and inorganic means.
Leveraging technology to make a positive impact across vitally
important areas, such as healthcare, education, and national
security, is core to Veritas. We are proud stewards of national
assets, improving the quality of healthcare while reducing cost,
advancing our educational system, and protecting our nation and
allies. For more information, visit www.veritascapital.com.
About Carlyle Carlyle (NASDAQ: CG) is a global investment
firm with deep industry expertise that deploys private capital
across three business segments: Global Private Equity, Global
Credit and Global Investment Solutions. With $376 billion of assets
under management as of June 30, 2022, Carlyle’s purpose is to
invest wisely and create value on behalf of its investors,
portfolio companies and the communities in which we live and
invest. Carlyle employs more than 1,900 people in 26 offices across
five continents. Further information is available at
www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.
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version on businesswire.com: https://www.businesswire.com/news/home/20220915005401/en/
MEDIA: For Sequa/Chromalloy: Natalie Wills
natalie_wills@sequa.com
For Veritas: Jenny Gore / Julie Rudnick / Kevin Siegel
Jenny.Gore@fgsglobal.com / Julie.Rudnick@fgsglobal.com /
Kevin.Siegel@fgsglobal.com
For Carlyle: Brittany Berliner (212) 813-4839
Brittany.Berliner@Carlyle.com
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