Karman Space & Defense, a leading U.S. developer of next-generation systems for space and defense applications, has acquired Five Axis Industries, a Washington-based manufacturer specializing in advanced engine subsystems for commercial space programs. The $88 million deal comprises $83 million in cash and approximately $5 million in Karman common shares.
Founded in 2002 and headquartered in Arlington, Washington, Five Axis has built a strong reputation for engineering and manufacturing specialized nozzles and fuel systems designed to optimize the performance of launch vehicle engines. Its products, which operate in corrosive and high-temperature propulsion environments, include spun-form nozzles, gaseous oxygen systems, and fluid control technologies embedded across multiple major space engine programs.
The acquisition strengthens Karman’s position in propulsion and launch system technologies by adding complementary and highly technical capabilities to its platform. Five Axis brings proprietary technologies tied to 3D-printed Inconel components, expanding Karman’s growing intellectual property portfolio. The integration of Five Axis’ expertise with Karman’s advanced spin-forming capability is expected to create vertically integrated solutions that address complex challenges in engine design and production.
Karman stated that the acquisition will be immediately accretive across key financial metrics, including revenue growth, adjusted EBITDA margins, and cash flow. The company recently expanded its Term Loan B facility from $370 million to $505 million to finance the transaction and repay its revolving credit facility.
Support: Advisors on the deal included RBC as the primary financial advisor, Citi as the junior bookrunner, and Willkie Farr & Gallagher LLP as legal counsel to Karman. KAL Capital acted as financial advisor to Five Axis.
KEY QUOTES:
“We are thrilled to add Five Axis to the Karman family. This acquisition strengthens our core competency in the engineering and manufacturing of mission-critical subsystems for the space market. Five Axis is a unique asset within the space supply chain whose proven expertise and successful track record in proprietary engine products is a natural extension of the Karman platform. Their customer and program relationships create compelling opportunities to accelerate our growth and create shareholder value.”
“We welcome the talented members of Five Axis to the Karman team. We look forward to working together to deliver even more value to our customers as we continue executing on our mission to be the nation’s leading merchant supplier of advanced space and defense technologies.”
Tony Koblinski, Chief Executive Officer, Karman Space & Defense
