Karman Space & Defense has acquired Metal Technology Inc. in a cash transaction worth $90 million to accelerate access to critical and classified strategic missile defense programs that align with the Department of Defense’s current and future funding priorities.
Adding Technical Capabilities to the Karman Platform
Trive Capital-backed Karman said Friday the acquisition adds highly technical capabilities to its platform, including hot forging, additive manufacturing and specialized forming of alloys.
“The acquisition represents a natural expansion of our expertise in advanced materials and an opportunity to deliver valuable new capabilities to our customers,” said Karman CEO Tony Koblinski.
“MTI is a unique asset within the defense supply chain whose deep capabilities in refractory metals have been on our strategic road map for some time. Their customer and programmatic relationships create compelling opportunities to accelerate our growth and create shareholder value,” Koblinski added.
The deal is immediately accretive to Karman across revenue growth, contracted revenue and cash flow, adjusted EBITDA margins and other major financial metrics.
What Does MTI Do?
Established in 1986, MTI manufactures specialized refractory metal alloy systems designed to optimize performance in the ultra-high-temperature environments of next-generation missile programs. Its products include nozzles, EM shielding, energetic liners, shape charges, gas generators and actuation systems.
The Albany, Oregon-based company has built a portfolio of proprietary products and has deep expertise in tantalum, zirconium, molybdenum and other refractory metal alloys.
Stock Market Debut
In March, Karman raised over $500 million through its initial public offering.
The company said it will use the net proceeds from the IPO to acquire complementary businesses or technologies, fund capital expenditures and support other general corporate initiatives.
