Karman Space & Defense has acquired Industrial Solid Propulsion to broaden its energetic propulsion technology capabilities.
In a statement published Thursday, Karman CEO Tony Koblinski called ISP a “natural, strategic fit” within the company’s portfolio.
Strengthening Competency in Energetics
“This acquisition strengthens our core competency in energetics, expands our offering in small-diameter solid propellant technologies and will allow us to serve our customers even better,” said Koblinski.
“ISP’s proprietary portfolio of propellant formulations and unique manufacturing capabilities furthers Karman’s mission of leveraging advanced technologies to drive agile solutions for customers across the space and defense market,” the chief executive added.
What Does Industrial Solid Propulsion Do?
ISP is a Cedar City, Utah-based company that designs, tests and produces small-diameter energetic and propulsion systems, including small boost motors and solid propellant gas generators for unmanned aircraft systems, UAS intercept and rocket-assisted takeoff systems markets.
Established in 1983, the company has developed a proprietary portfolio of propellant formulations and tactical motor configurations in support of the Department of Defense’s high-priority programs. Its full-service capabilities include propellant and cartridge design, mixing, grain formulation, machining, cartridge loading and hot-fire testing.
ISP has supported STEM-based educational curricula for schools, clubs, camps and youth organizations to help future energetics and propulsion engineers learn, experiment and pursue careers in the sector.
Transaction Details
Karman increased its existing $300 million Term Loan B by $75 million to fund the ISP acquisition, which consisted of $50 million in cash, about $5 million in Karman common shares and potential earnout payments of $5 million.
The acquisition closed on Wednesday, May 28.
Citi and Willkie Farr & Gallagher acted as Karman’s exclusive financial adviser and legal adviser, respectively, in the transaction. KAL Capital advised ISP on the deal’s financial aspect.
The latest transaction came a month after Karman acquired Metal Technology Inc. to accelerate access to critical and classified strategic missile defense programs aligned with DOD’s current and future funding priorities.
