Karman Space & Defense, a leader in the rapid design, development and production of critical, next-generation system solutions that align with the U.S. Department of War’s (“DOW”) core mission priorities and the nation’s accelerating demand for access to space, announced the closing of its previously announced agreement to acquire Seemann Composites and MSC on February 3, creating a multi-domain leader in critical sub-systems for key space and defense programs.
In connection with the transaction, the company amended its credit agreement to increase its incremental term loan to $772 million. The company used the proceeds from the amendment to fund the acquisition of Seemann and MSC and provide additional working capital and liquidity to the company, while also reducing its interest rate by 75 basis points to SOFR plus 2.75%.
“We are delighted to welcome the talented employees of Seeman Composites and MSC to the Karman team where, together, we can deliver advanced solutions across all domains with greater speed, agility and scale than ever before,” said Tony Koblinski, Chief Executive Officer. “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. 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.”
Karman expects the acquisitions to expand its access to multi-decade, high priority, funded U.S. Navy programs and to be immediately accretive in 2026 to revenue growth, funded backlog, EBITDA, earnings per share and cash flow. Karman further anticipates that as a result of the acquisitions it will maintain its position at the upper echelon of Adjusted EBITDA margins among defense technology companies.