• Transaction Positions Leader in Aerospace Engineered Components and Specialty Processes for its Next Chapter of Growth at Scale
• Provides Cash Payouts to All Employees Through Ownership Program

Leading investment firms KKR and Arcline Investment Management (“Arcline”) today announced that Arcline has entered into a definitive agreement to acquire Novaria Group (“Novaria” or the “Company”), a leading provider of engineered aerospace components and specialty processes, in a transaction valued at $2.2 billion.

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“We are proud of how we built Novaria in partnership with the management team into a resilient aerospace and defense supplier that benefits its employees and customers,” said Josh Weisenbeck, Partner at KKR. “This milestone was enabled by an ownership mindset, operational excellence, and putting our people first, and we are pleased to see all employees share in the value they helped create.”

Following KKR’s initial investment in 2020, Novaria has more than tripled in size, completing 13 strategic add-on acquisitions that broadened its product portfolio and enhanced its manufacturing footprint. The Company today serves 3,000+ customers globally and employs over 1,600 colleagues across the U.S.

“This transaction represents the success of our long-standing partnership with KKR and the dedication of the Novaria team,” said Bryan Perkins, CEO of Novaria Group. “Novaria’s focus on customer partnership within the aerospace industry has driven remarkable results, and this outcome is a reflection of the collective effort and commitment of our colleagues.”

KKR’s track record with Novaria and focus on employee engagement have delivered measurable results across the organization:

• Safety: Improvements in safety have reduced the total recordable incident rate by over 60% since 2021
• Talent Retention: Delivered an almost 20% reduction in voluntary turnover since 2021
• Ownership Culture: Achieved top quartile for manufacturing companies on the Ownership Works index

As a result of Novaria’s employee ownership program, all of the Company’s over 1,600 employees will receive cash payouts upon closing the transaction.

KKR and Novaria were advised by Morgan Stanley & Co. LLC as financial advisor and Kirkland & Ellis as legal advisor on the transaction.

The transaction is subject to customary closing conditions and regulatory approvals.

About Novaria Group

Founded in 2011 and headquartered in Fort Worth, TX, Novaria Group is a leading provider of niche engineered components and specialty processes that serve the aerospace and defense industries. With a mission to improve the aerospace supply chain, Novaria is dedicated to delivering exceptional customer service and quality to its customers. Novaria’s range of products and capabilities position it as a trusted partner to over 3,000 customers.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

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