Infrastructure investment manager I Squared Capital is in advanced discussions to acquire US aerospace manufacturer Orizon Aerostructures in a transaction valuing the business at approximately $2bn, according to Private Equity Wire, citing a Bloomberg report. A transaction could reportedly be announced as soon as this week, although negotiations remain ongoing and no agreement has been finalised, according to Private Equity Wire.
Target: Orizon Aerostructures
Kansas City-based Orizon manufactures structural components for commercial and military aircraft, including Lockheed Martin’s F-35 fighter jet and Boeing’s 737 Max, according to Private Equity Wire. The company reported a backlog exceeding $3.1bn last year, supported by a multiyear contract with Lockheed Martin, according to the same report.
Buyer: I Squared Capital
The proposed acquisition would mark an expansion into aerospace and defence for I Squared Capital, according to Private Equity Wire. I Squared manages approximately $60bn and has historically focused on investments across energy, transportation, utilities and digital infrastructure, according to Private Equity Wire.
Prior ownership and market backdrop
Orizon previously received a $50m investment from private equity firm American Industrial Partners in 2020, according to Private Equity Wire. The discussions come amid increased private capital interest in aerospace manufacturing, driven by defence spending and demand for established production capacity, according to Private Equity Wire.
