Dallas-based private equity firm Trive Capital has partnered with Aerospace Engineering Corp. and AMRO Fabricating Corporation, both California-based companies, to create a new platform for the missile and space market. Karman Missile and Space Systems, now operating out of Los Angeles, is the result of the partners’ collective vision to build an integrated supplier of flight hardware and assemblies.

The formation of the new platform puts Karman among the largest independently owned suppliers dedicated to manufacturing complex systems for the space, missile, interceptor, and hypersonic markets, according to the PE firm in a news release.

Trive Capital has partnered with AEC and AMRO to form Karman Missile & Space Systems. [Image: Trive Capital]

David Stinnett, a partner at Trive Capital, says Karman is positioned to benefit from the increasing demand for space launch, missile defenses, and hypersonic weapon technologies, according to a statement. Stinnett’s responsibilities include identifying and evaluating investment opportunities at the private equity firm, which manages some $2 billion in aggregate capital commitments. The PE firm aims to maximize returns through a hands-on partnership that includes identifying and implementing value creation ideas.

Stinnett says both AEC and AMRO have “outstanding reputations” for high quality and on-time delivery on difficult-to-manufacture flight hardware and assemblies. He sees Karman as a full-service supplier for these markets, anticipating “significant investment to support the capabilities and capacity demanded by customers both now and in the years to come.”

The senior leadership teams of AEC and AMRO will continue as equity holders and executives at Karman, according to the private equity firm.

“A HISTORICALLY FRAGMENTED MARKET”

Mike Riley, the former owner of AMRO and new Chief Executive Officer of Karman, says the company’s “goal is to build the preeminent Tier 1 systems integrator to the space sector, in a historically fragmented market.”

“Working collaboratively with Trive and AEC will allow us to continue growing with our customers, investing in new capabilities and adding capacity to alleviate current supply chain constraints.” Riley says.

Karman has a unique and comprehensive set of capabilities for complex manufacturing thanks to the expertise of its partners. The company, which provides design and engineering, precision machining, large-part forming, thermal coating, and sub-assembly services, complex manufacturing, aims to actively add new capabilities in collaboration with customers.

The new platform credits its engineering capabilities and manufacturing footprint to benefits from a comprehensive set of OEM approvals and extensive proprietary process IP, according to the news release.

“Our partnership with AMRO and Trive has already allowed us to accelerate our expansion and play an increasing role in the development and manufacturing of our customers’ most important next-generation programs,” Mark Mahboubi, Chief Technology Officer for Karman and former owner of AEC, says in a statement.

“We’re very pleased to offer enhanced solutions to OEMs and support them in the critical years ahead for space and defense. Moreover, the team plans to continue to invest into new technologies and advanced materials for emerging requirements.”

Investment bank D.A. Davidson acted as exclusive advisors to the shareholders of Aerospace Engineering Corp. and KAL Capital Markets acted as exclusive advisors to the shareholders AMRO Fabricating Corporation.

Karman currently operates three centers of excellence in greater Los Angeles, along with a presence in Washington D.C. and Huntsville, Alabama.

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