Veritas Capital to Acquire Sequa from Carlyle

Veritas Capital (“Veritas”), a leading technology and government investment firm, announced today that an affiliate of Veritas has entered into a definitive agreement to acquire Sequa Corporation (“Sequa”), parent company of Chromalloy (“Chromalloy”), from funds managed by global investment firm Carlyle (NASDAQ: CG). Financial terms of the transaction were not disclosed.

Headquartered in Palm Beach Gardens, FL, Sequa, through its subsidiary Chromalloy, is a global technology company and a leading solutions provider for aircraft engines and gas turbines. For over 70 years, Chromalloy’s solutions have safely and reliably extended the life of aircraft engines and gas turbines, improving the economics of flight and power generation. Chromalloy possesses distinctive engine and turbine component design and development expertise as well as advanced engineering capabilities that support proprietary component solutions. These proprietary parts and repairs are supported by Chromalloy’s extensive internal value chain including investment castings, advanced coatings, and precision machining. Chromalloy is Sequa’s only remaining business, following the sale of its Precoat Metals business to AZZ Inc. (NYSE: AZZ) earlier this year.

“Chromalloy has emerged as an industry leader by leveraging technology and innovation to drive a highly unique value proposition for customers,” said Ramzi Musallam, Chief Executive Officer and Managing Partner of Veritas. “We are thrilled to partner with Brian and the entire Chromalloy team, who have a proven track record of delivering differentiated solutions to the global engine ecosystem. Together, we are excited to continue investing in distinctive technology and deepening Chromalloy’s relationships with both existing and new customers.”

Brian Costa, President of Chromalloy, commented, “We are honored to partner with Veritas, and we look forward to accelerating our business under their ownership. Veritas believes in our strategy and the long-term growth potential of our business enabled by our proprietary LifeX® solutions. We are ready to work with Veritas to continue delivering world-class solutions and unmatched value to our customers around the world.”

“Chromalloy is well-positioned for growth, and we are excited for the future of the business with Veritas,” said Tom Mepham, Chief Executive Officer of Sequa. “We are thankful to the team at Carlyle for their tremendous partnership over the years. With their support, we invested to develop leading capabilities and expanded our relationships with customers, both of which were instrumental in leading to a successful business transformation and future opportunities. We are pleased that Veritas recognizes the tremendous value and potential of the Chromalloy business.”

The transaction is expected to close in the fourth quarter of 2022.

Advisors

Evercore and BofA Securities acted as financial advisors and Latham & Watkins LLP served as legal counsel to Sequa Corporation in connection with the transaction. Gibson, Dunn & Crutcher LLP and Covington & Burling LLP served as legal counsel to Veritas.

About Sequa/Chromalloy

Chromalloy provides the airline industry with a broad range of aftermarket services and ranks as the leading independent supplier of advanced repairs for jet engine parts. Chromalloy operates around the world and around the clock, providing airlines with timely, cost-effective, and proven repairs for turbine airfoils and other critical engine parts – repairs that extend the life of the parts and drive down engine maintenance costs. Chromalloy also serves the industrial and gas turbine market, as well as the military market. Sequa Corporation is the parent company of Chromalloy. For additional information, visit www.chromalloy.com.

About Veritas Capital

Veritas is a longstanding technology investor with a focus on companies operating at the intersection of technology and government. The firm invests in companies that provide critical products, software, and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means.

Leveraging technology to make a positive impact across vitally important areas, such as healthcare, education, and national security, is core to Veritas. We are proud stewards of national assets, improving the quality of healthcare while reducing cost, advancing our educational system, and protecting our nation and allies. For more information, visit www.veritascapital.com.

About Carlyle

Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $376 billion of assets under management as of June 30, 2022, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 1,900 people in 26 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.

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