Washington, D.C.-based Arlington Capital Partners has combined three businesses to form and unveil Keel, a new portfolio company focused on producing complex structures for U.S. defense programs, and closed its latest fund with $3.8 billion in total capital commitments.
Keel is led by CEO Brian Carter, most recently chief executive of Pegasus Steel, and has approximately 700 employees across nine facilities in South Carolina and Michigan focused on delivering design, engineering, machining, fabrication, surface treatment and integration capabilities in support of U.S. Navy programs and other critical initiatives within the Department of Defense and industrial markets, ACP said Thursday.
“Keel is supporting the steep production ramp of the Columbia and Virginia class submarine programs by positioning itself to deliver turnkey structures and modules to its customers, empowering them to use valuable shipyard space more effectively,” said Ben Ramundo, a principal at ACP.
“We are excited to support the entire management team as the industrial logic of these transactions yields measurable benefits to Keel’s customers and the national security community,” Ramundo added.
In June 2023, the private equity firm acquired Pegasus Steel, a provider of fabricated steel structures used for building nuclear submarines, aircraft carriers and other vessels for the Navy.
To establish Keel, ACP moved to merge Pegasus Steel with two newly acquired companies: military metal fabrication and ship repair services provider Metal Trades and Merrill Technologies Group, which produces large metal parts and structures for aerospace, defense and industrial markets.
ACP surpassed its target of $3.25 billion for its sixth fund – Arlington Capital Partners VI – and will use the latest fund to continue to invest in companies in government services and technology, aerospace and defense and health care sectors.
To date, the oversubscribed fund has closed 10 follow-on acquisitions and eight platform investments across various areas, including cybersecurity, submarine structures manufacturing and public sector software.
