Sterlington Advises Novaria Group’s Management on $2.2 Billion Sale to Arcline Investment Management
In a landmark aerospace industry transaction, Sterlington LLP has announced its role as legal advisor to the management team of Novaria Group, a leading provider of engineered aerospace components and specialty processes, in connection with the company’s $2.2 billion sale to Arcline Investment Management. The sale marks one of the largest private equity-backed transactions in the aerospace manufacturing sector this year, underscoring Novaria’s rapid growth trajectory and the enduring investor confidence in aerospace manufacturing and supply chain resilience.
The deal, which transfers ownership of Novaria from KKR & Co., represents both a strategic exit and a new chapter for a company that has transformed significantly since its founding in 2011. The acquisition is currently subject to customary closing conditions and regulatory approvals, but once completed, it is expected to further strengthen Novaria’s position as a critical supplier to global aerospace OEMs and defense contractors.
A Decade of Strategic Expansion
Novaria Group was founded by Bryan Perkins, who envisioned a company that could unify a portfolio of highly specialized manufacturers serving the aerospace, defense, and industrial sectors. From its inception, the firm pursued a buy-and-build strategy—acquiring niche aerospace component manufacturers with complementary capabilities and integrating them under a unified operational model.
Over the past decade, this strategy has paid remarkable dividends. Since KKR’s investment in 2020, Novaria has experienced over 200% growth, driven by 13 strategic add-on acquisitions. These acquisitions expanded its engineering and manufacturing footprint, enabling the company to offer a broader suite of products and processes—from precision fasteners and structural hardware to advanced coatings and surface treatments.
This growth has also deepened Novaria’s customer relationships. Today, the company serves more than 3,000 customers worldwide, including major aerospace OEMs and Tier 1 suppliers across commercial aviation, defense, and space exploration. Novaria’s facilities now operate across North America and Europe, and its products are embedded in some of the world’s most advanced aircraft and defense systems.
Sterlington’s Role: Guiding the Management Team Through a Complex Transaction
In this high-profile transaction, Sterlington LLP advised the Novaria management team on executive compensation arrangements, a critical component of the deal that ensures leadership continuity and aligns incentives with the company’s next phase of ownership.
Sterlington’s team was led by Executive Compensation Partner Jeremy L. Goldstein and M&A Partner Christopher S. Harrison, both of whom bring deep expertise in advising on complex compensation structures, mergers, and acquisitions. They were supported by partners Kristy Fields, Michael Gilligan, and Robert Kantowitz, as well as associate Stefania Olmos, who contributed to various aspects of transaction support and regulatory compliance.
Executive compensation negotiations in private equity transactions of this scale often require careful balancing between the interests of existing management, exiting investors, and incoming owners. For the Novaria deal, Sterlington’s team focused on structuring incentive frameworks that reward operational performance, long-term value creation, and seamless leadership transition—all while maintaining regulatory and tax compliance across multiple jurisdictions.
The advisory work included reviewing and negotiating change-in-control arrangements, retention bonuses, equity rollover agreements, and new incentive plans under Arcline’s ownership structure. These elements are critical for ensuring that senior executives remain committed to executing Novaria’s strategic growth initiatives post-acquisition.
A Partnership Built on Operational Excellence
Under the leadership of CEO Bryan Perkins, Novaria has become known for its disciplined approach to operational improvement and its focus on high-performance manufacturing. Perkins, who co-founded the company with a vision to create a platform for specialized aerospace manufacturers, has guided Novaria through cycles of growth, integration, and innovation.
KKR’s 2020 investment provided Novaria with the capital and expertise to accelerate this strategy. Working alongside KKR, Novaria executed a series of targeted acquisitions that expanded its technical capabilities and diversified its revenue base. This included investments in advanced materials processing, component testing, and precision machining—all critical to meeting the increasingly complex demands of aerospace and defense customers.
With Arcline Investment Management now acquiring Novaria, the company is poised to enter another phase of expansion—one that will likely emphasize advanced manufacturing technologies, automation, and sustainability. Arcline, a growth-oriented private equity firm with a strong industrial portfolio, is known for investing in companies that blend engineering excellence with mission-critical capabilities.
Aerospace Industry Context: A Market in Renewal
The sale of Novaria comes amid a renewed sense of optimism in the global aerospace and defense sector. Following several years of supply chain disruption and market volatility due to the COVID-19 pandemic, commercial aviation is experiencing a robust rebound. Aircraft manufacturers are scaling up production to meet the surge in global travel demand, and defense budgets remain strong as governments prioritize security and technological advancement.
This recovery has placed immense pressure on supply chains, creating a premium on reliable, high-quality component manufacturers. Novaria’s reputation for engineering precision, consistent quality, and on-time delivery has made it a trusted partner to OEMs such as Boeing, Airbus, Lockheed Martin, and Northrop Grumman.
Private equity investors have taken notice. Aerospace component manufacturing has become an attractive asset class, with funds seeking opportunities in consolidation and technology integration. The sector’s long product cycles, rigorous quality standards, and increasing emphasis on sustainability and lightweight materials provide a stable foundation for long-term investment.
In this context, Arcline’s acquisition of Novaria is not just a financial transaction—it’s a strategic bet on the future of advanced aerospace manufacturing.
Legal Strategy and Transaction Complexity
For a transaction valued at $2.2 billion, the legal architecture must be meticulously designed to anticipate regulatory scrutiny and ensure compliance with international aerospace standards. The involvement of multiple private equity firms, cross-border operations, and complex compensation structures makes deals like this particularly intricate.
Sterlington’s advisory team navigated several key areas during the negotiation and due diligence phases:
- Executive Compensation and Equity Structures: Designing balanced compensation packages to retain leadership talent while aligning with Arcline’s investment objectives.
- Change-in-Control Agreements: Ensuring executives are fairly compensated for their role in the sale while maintaining corporate continuity.
- Tax Planning: Structuring compensation and equity components to optimize tax outcomes for executives and investors.
- Regulatory Compliance: Addressing export control regulations, antitrust considerations, and aerospace industry standards.
The firm’s approach emphasized strategic negotiation and legal precision, ensuring that both management and new investors were aligned on governance, oversight, and performance objectives.
Sterlington’s Broader Expertise in M&A and Executive Compensation
Founded with a modern approach to corporate law, Sterlington LLP has established itself as a trusted advisor for high-stakes mergers, acquisitions, and executive compensation matters. The firm is known for its collaborative client engagement and its focus on providing business-driven legal solutions that extend beyond transactional execution.
Jeremy L. Goldstein, who co-led the Novaria engagement, is widely recognized for his work on executive pay design and governance. He has advised numerous boards and compensation committees across Fortune 500 and private companies, particularly in complex mergers and restructurings. Similarly, Christopher S. Harrison, a seasoned M&A partner, brings decades of experience in guiding clients through transformative corporate transactions.
Together, their leadership on the Novaria transaction highlights Sterlington’s ability to bridge the legal, financial, and human dimensions of M&A—an increasingly critical capability in today’s competitive dealmaking environment.
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 Sterlington
Sterlington PLLC is a full-service law firm focusing on complex corporate, litigation, executive compensation, and private wealth matters. As a firm, we focus on the economic as well as the legal aspects of our matters.
Among other strengths, Sterlington is the ultimate law firm for founders, senior executives, and UHNWIs as well as their related businesses.
Visit us at www.sterlingtonlaw.com.
Source Link:https://www.businesswire.com/
