KKR Sells CIRCOR Aerospace Division for $2.55B

KKR (KKR) and CIRCOR International announced the signing of a definitive agreement to sell CIRCOR Aerospace, the Company's aerospace division, to Parker Hannifin Corporation (PH), for $2.55B. Funds managed by KKR first acquired CIRCOR for $1.8B in 2023 and will maintain ownership of CIRCOR's Naval and Industrial businesses. The company said, "With more than 75 years of heritage in fluid control, pneumatic, electromechanical, and actuation components and subsystems, CIRCOR Aerospace has established a leading position across commercial aerospace and defense end markets through its highly engineered, mission-critical products, long-standing customer relationships, and continued investment in innovation and manufacturing capabilities. This combination of Parker Hannifin and CIRCOR Aerospace brings together complementary capabilities, product portfolios, and platform exposures to create a stronger, more diversified aerospace and defense supplier with enhanced scale. KKR acquired CIRCOR through its North America Fund XIII. The transaction reflects KKR's long-standing conviction in themes that are increasingly important in today's geopolitical environment, including defense modernization and supply chain resilience. CIRCOR's Naval business, amongst other KKR private equity investments, will continue to provide KKR with exposure to these strategically important end markets. In early 2024, CIRCOR launched its broad-based employee ownership program, making all CIRCOR employees owners of the Company. At transaction close, all CIRCOR employees will receive a dividend distribution funded by a portion of the sale proceeds and in recognition of the continued strong performance of CIRCOR's Industrial and Naval businesses. KKR sees meaningful opportunity to further scale both businesses going forward." The transaction is expected to close in the second half of 2026, subject to customary closing conditions and regulatory approvals.