Karman Space & Defense has acquired Seemann Composites and MSC, positioning the company as a provider of multi-domain subsystems for space and defense initiatives.
How Does the Acquisition Reshape Karman’s Portfolio?
The Huntington Beach, California-based company said Thursday the acquisition, announced in January, combines Seemann and MSC with its existing maritime operations, establishing a new Maritime Defense Systems end market. The segment spans submarines, autonomous undersea vehicles and tactical surface vessels, broadening the company’s portfolio across maritime and adjacent defense domains. The company expects to complete the integration of both businesses into its corporate structure by the end of 2026. Sid Charbonnet, president of Seemann and MSC, will serve on the company’s leadership team.
What Capabilities Do Seemann & MSC Bring to Karman?
Seemann and MSC manufacture acoustic coatings, propulsion systems and advanced materials for surface ships, submarines and autonomous maritime platforms. Their combined engineering capabilities, testing and qualification experience, and manufacturing scale expand Karman’s vertically integrated platform, especially in advanced materials.
“As an all-domain solutions provider, Karman now offers unique, IP-enabled solutions for critical space and defense systems operating in extreme environments ranging from the high pressure of the deep ocean to the searing heat of atmospheric re-entry,” said Tony Koblinski, CEO of Karman. “Our expanded portfolio of intellectual property incorporating advanced metallics, energetics, composites and resins gives us the ability to design our solutions to customer requirements and produce at scale to support mission success.”
How Was the Acquisition Financed?
In connection with the closing, Karman updated its credit agreement, raising its incremental term loan to $772 million and lowering the interest rate by 75 basis points to the secured overnight financing rate, or SOFR, plus 2.75 percent. The proceeds were used to fund the acquisitions and support working capital and liquidity.
What Are the Financial Expectations?
Karman expects the acquisitions to be accretive in 2026 across revenue growth, funded backlog, EBITDA, earnings per share and cash flow. The company also anticipates maintaining adjusted EBITDA margins near the top of the defense technology sector.
