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ITT Completes Acquisition of kSARIA, Leading Manufacturer of Mission-Critical Aerospace and Defense Connectivity Solutions

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ITT Inc. (NYSE: ITT) has completed its acquisition of kSARIA Parent, Inc., a leading manufacturer of mission-critical connectivity solutions for the aerospace and defense sectors. The acquisition, announced on Aug. 1, 2024, is funded through a ~$460 million term loan and cash on hand. kSARIA, with $175 million in sales in 2023, produces engineered cable assemblies for avionics, sensors, and communications applications. Operating in a $7 billion addressable North American defense market, kSARIA is expected to benefit from global defense build-up and investments in new platforms. The company, now part of ITT's Connect & Control Technologies segment, has 1,000 employees across six North American manufacturing sites.

ITT Inc. (NYSE: ITT) ha completato l'acquisizione di kSARIA Parent, Inc., un produttore leader di soluzioni di connettività mission-critical per i settori aerospaziale e della difesa. L'acquisizione, annunciata il 1° agosto 2024, è finanziata tramite un prestito a termine di circa 460 milioni di dollari e contante disponibile. kSARIA, con 175 milioni di dollari di vendite nel 2023, produce assiemi di cavi ingegnerizzati per avionica, sensori e applicazioni di comunicazione. Operando in un mercato della difesa nordamericano accessibile di 7 miliardi di dollari, kSARIA si prevede beneficerà dell'aumento della spesa per la difesa a livello globale e degli investimenti in nuove piattaforme. L'azienda, ora parte del segmento Tecnologie di Connessione e Controllo di ITT, conta 1.000 dipendenti distribuiti in sei siti produttivi nordamericani.

ITT Inc. (NYSE: ITT) ha completado la adquisición de kSARIA Parent, Inc., un fabricante líder de soluciones de conectividad críticas para las misiones en los sectores aeroespacial y de defensa. La adquisición, anunciada el 1 de agosto de 2024, está financiada a través de un préstamo a plazo de aproximadamente 460 millones de dólares y efectivo disponible. kSARIA, con 175 millones de dólares en ventas en 2023, produce ensamblajes de cables diseñados para aplicaciones de avionica, sensores y comunicaciones. Operando en un mercado de defensa norteamericano accesible de 7 mil millones de dólares, se espera que kSARIA se beneficie del aumento global en defensa y las inversiones en nuevas plataformas. La compañía, ahora parte del segmento de Tecnologías de Conexión y Control de ITT, tiene 1,000 empleados en seis sitios de fabricación en América del Norte.

ITT Inc. (NYSE: ITT)은 항공 우주 및 방위 분야에서 임무 핵심 연결 솔루션의 선두 제조업체인 kSARIA Parent, Inc.의 인수를 완료했습니다. 2024년 8월 1일 발표된 이번 인수는 약 4억 6천만 달러의 만기 대출과 현금으로 자금을 조달하였습니다. kSARIA는 2023년에 1억 7천5백만 달러의 매출을 기록하며, 항공 전자기기, 센서 및 통신 응용 프로그램을 위한 설계된 케이블 조립품을 생산합니다. 70억 달러 규모의 북미 방산 시장에서 운영하는 kSARIA는 글로벌 방위 강화와 새로운 플랫폼에 대한 투자로 혜택을 볼 것으로 기대됩니다. ITT의 연결 및 제어 기술 부문의 일원이 된 이 회사는 북미 6개 제조 사이트에 1,000명의 직원을 보유하고 있습니다.

ITT Inc. (NYSE: ITT) a finalisé son acquisition de kSARIA Parent, Inc., un fabricant leader de solutions de connectivité critiques pour les secteurs aérospatial et de la défense. L'acquisition, annoncée le 1er août 2024, est financée par un prêt à terme d'environ 460 millions de dollars et de la trésorerie disponible. kSARIA, avec 175 millions de dollars de ventes en 2023, produit des ensembles de câbles conçus pour des applications d'avionique, de capteurs et de communications. Opérant dans un marché de défense nord-américain accessible de 7 milliards de dollars, on s'attend à ce que kSARIA tire parti du renforcement mondial des capacités de défense et des investissements dans de nouvelles plateformes. L'entreprise, désormais intégrée au segment Technologies de Connexion et de Contrôle d'ITT, compte 1 000 employés répartis sur six sites de fabrication en Amérique du Nord.

ITT Inc. (NYSE: ITT) hat die Übernahme von kSARIA Parent, Inc., einem führenden Hersteller von mission-critical Verbindungslösungen für die Luft- und Raumfahrt- sowie Verteidigungssektoren, abgeschlossen. Die Übernahme, die am 1. August 2024 angekündigt wurde, wird durch ein Terminkredit in Höhe von ca. 460 Millionen Dollar und vorhandene liquide Mittel finanziert. kSARIA erzielte 2023 einen Umsatz von 175 Millionen Dollar und stellt konstruierte Kabelbaugruppen für Avionik-, Sensor- und Kommunikationsanwendungen her. Mit einem adressierbaren Verteidigungsmarkt in Nordamerika im Wert von 7 Milliarden Dollar wird erwartet, dass kSARIA von der globalen Verteidigungsaufrüstung und Investitionen in neue Plattformen profitiert. Das Unternehmen, das jetzt Teil des Segments Connexion & Control Technologies von ITT ist, beschäftigt 1.000 Mitarbeiter an sechs nordamerikanischen Produktionsstandorten.

Positive
  • Acquisition expands ITT's presence in the growing aerospace and defense connectivity market
  • kSARIA's products complement ITT's existing connector portfolio
  • kSARIA operates in a market expected to grow at a high-single digit CAGR through 2028
  • Nearly 70% of kSARIA's positions are sole or primary source, indicating strong market position
  • Acquisition provides access to kSARIA's proprietary engineering and manufacturing capabilities
  • kSARIA's existing positions on coveted platforms and customer relationships offer growth potential
Negative
  • Significant debt incurred with ~$460 million term loan to fund the acquisition
  • Integration challenges may arise from incorporating kSARIA's 1,000 employees and six manufacturing sites
  • Potential risks associated with the cyclical nature of the defense industry

Insights

ITT's acquisition of kSARIA is a strategic move that significantly enhances its position in the aerospace and defense connectivity market. The $460 million term loan for this acquisition indicates ITT's confidence in the long-term value of kSARIA. With kSARIA's $175 million in sales for 2023 and its strong market position, this acquisition could drive substantial revenue growth for ITT's Connect & Control Technologies segment. The expected high-single digit CAGR through 2028 in the $7 billion addressable North American defense market presents a significant growth opportunity. However, investors should monitor how quickly ITT can integrate kSARIA and realize synergies to justify the acquisition cost.

This acquisition strategically positions ITT to capitalize on the growing demand for advanced connectivity solutions in aerospace and defense. kSARIA's expertise in cable assemblies for avionics, sensors and communications complements ITT's existing connector portfolio, potentially leading to more comprehensive offerings. The sole or primary source position for 70% of kSARIA's products indicates strong market entrenchment and potential for sustained revenues. With global defense spending on the rise, particularly in electronic system upgrades and soldier modernization, ITT is well-positioned to benefit from these trends. However, the challenge lies in maintaining kSARIA's innovation edge and customer relationships post-acquisition.

The acquisition of kSARIA by ITT is a calculated move to expand its footprint in a high-growth sector. The North American defense market's projected growth rate is particularly attractive, especially given the current geopolitical climate driving increased defense spending. kSARIA's strong presence in mission-critical applications and its six manufacturing sites across North America provide ITT with enhanced production capabilities and market access. This acquisition could potentially accelerate ITT's revenue growth and improve its competitive position. However, investors should watch for any integration challenges or potential market saturation that could impact the expected growth trajectory.

STAMFORD, Conn.--(BUSINESS WIRE)-- September 12, 2024-- ITT Inc. (NYSE: ITT) today announced the completion of its acquisition of kSARIA Parent, Inc. (kSARIA), a leading producer and supplier of mission-critical connectivity solutions for the defense and aerospace end markets. ITT previously announced the acquisition on Aug. 1, 2024. The acquisition will be funded through a combination of a ~$460 million term loan entered into today and cash on hand.

kSARIA produces highly engineered cable assemblies for avionics, sensors, communications and networking applications that are highly complementary to ITT’s existing connector portfolio. It operates in a nearly $7 billion addressable North American defense market that is expected to grow at a high-single digit CAGR through 2028, and nearly 70% of its positions are sole or primary source. With its proprietary engineering and manufacturing capabilities, existing positions on coveted platforms and long-standing relationships with leading customers, kSARIA is well-positioned to benefit from global defense build-up, including investments in new platforms, electronic system upgrades and soldier modernization.

Headquartered in Hudson, New Hampshire, kSARIA has approximately 1,000 employees across six manufacturing sites in North America. It generated approximately $175 million in sales in 2023. kSARIA is now part of ITT’s Connect & Control Technologies segment, a producer of harsh environment connectors and control components used in critical aerospace, defense and industrial applications.

About ITT

ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, and energy markets. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. ITT is headquartered in Stamford, Connecticut, with employees in more than 35 countries and sales in approximately 125 countries. For more information, visit www.itt.com.

ITT-O

Media:

Phil Terrigno

+1 914-641-2143

phil.terrigno@itt.com



Investors:

Mark Macaluso

+1 914-641-2064

mark.macaluso@itt.com

Source: ITT Inc.

FAQ

What is the value of ITT's acquisition of kSARIA?

While the exact acquisition value isn't disclosed, ITT is funding the acquisition through a combination of a ~$460 million term loan and cash on hand.

How much revenue did kSARIA generate in 2023?

kSARIA generated approximately $175 million in sales in 2023.

What is the size of the market kSARIA operates in?

kSARIA operates in a nearly $7 billion addressable North American defense market.

How many employees does kSARIA have and where are they located?

kSARIA has approximately 1,000 employees across six manufacturing sites in North America.

What segment of ITT will kSARIA be integrated into?

kSARIA will be integrated into ITT's Connect & Control Technologies segment.

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