• Karman’s strategy is to deliver advanced systems and subsystems for high-growth end markets, serving the United States and its allies’ highest priority national security interests, from deep sea to deep space
• Through integrated design, IP protected products and vertical integration, Karman is architected for agility and speed, delivering the best technology for the most challenging environments
• The planned acquisition of Walker Precision Engineering significantly advances this strategy and further aligns Karman’s business with core national and allied security priorities

Company Website: https://www.karman-sd.com
FARNBOROUGH, England -- (Business Wire)

Farnborough Airshow -- Karman Space & Defense (“Karman”, “Karman Holdings, Inc.” or “the Company”) (NYSE: KRMN), a leader in the rapid design, development, and production of critical, next-generation systems that align with the core mission priorities of the U.S. Department of War and its allies, and meet the accelerating demand for access to space, today announced an agreement to acquire Glasgow-headquartered Walker Precision Engineering (“Walker”) for total consideration of approximately $94 million or £70 million.

Walker possesses unique, integrated manufacturing capabilities that span engineering, advanced materials design, precision machining, electroplating and electromechanical assemblies. Walker’s advanced products support missile seekers, guidance systems and control systems on more than 25 EU tactical missile, air and defense programs for prime contractors whose reach extends around the globe.

The acquisition accelerates Karman’s expansion beyond the United States, providing a European footprint from which to add to its 17 locations across eight U.S. states. Walker’s customers, advanced IP and technology represent a highly complementary fit with Karman’s, providing the combined customer base with an enhanced set of solutions to solve mission-critical challenges.

“Karman continues to invest in the capacity and capabilities that will help our customers deliver on an unprecedented wave of end market demand,” said Jon Rambeau, Karman chief executive officer. “We expect that Walker’s strong missile- and aviation-related capabilities and programmatic relationships with the largest European space and defense prime contractors will increase our addressable market and create new opportunities for development, cross-selling and export, across our enterprise. We look forward to welcoming the talented Walker employees in Scotland, England and Poland to the Karman team.

“By focusing on high priority missions and by delivering strong, consistent performance, Walker has built a robust growth pipeline. We believe that operating as part of Karman will unlock valuable synergies that will broaden that pipeline to maximize long-term prospects for growth,” Mr. Rambeau added.

“Over the past eight years, Walker has invested in our people, facilities and capabilities to become a trusted manufacturing partner to industry leaders across the aerospace, defense and space sectors,” said George Adams, Walker chief executive officer. “Joining Karman marks an exciting new chapter that will allow us to build on those foundations.”

Since its inception in 1979, Walker has established multi-decade relationships with top global defense primes, developing a vertically integrated, one-stop shop capable of performing all critical processes in-house.

The transaction is expected to close during the third quarter of Karman’s fiscal year 2026, subject to customary closing conditions and regulatory approvals. Upon closing, Karman expects the acquisition to expand access to current and next-generation European and other allied nation missile programs. The acquisition is also expected to be immediately accretive to Karman revenue, backlog, adjusted EBITDA, adjusted earnings per share and cash flow.

ADVISORS

Kroll acted as exclusive sell-side advisor to Walker Precision Engineering and shareholders, providing Investment Banking services.

ABOUT KARMAN SPACE & DEFENSE

Karman Space & Defense is 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 core mission priorities and the nation’s accelerating demand for access to space. Building on nearly 50 years of success, we deliver Payload & Protection Systems, Hydro/Aerodynamic Interstage Systems, and Propulsion & Launch Systems to over 80 prime contractors supporting more than 130 space and defense programs. Karman is headquartered in Huntington Beach, Calif., with multiple facilities across the United States. For more information, visit our website, www.karman-sd.com

Safe Harbor Statement

This announcement may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as “expect,” “expectation,” “believe,” “anticipate,” “may,” “could,” “intend,” “belief,” “plan,” “estimate,” “target,” “predict,” “likely,” “seek,” “project,” “model,” “ongoing,” “will,” “should,” “forecast,” “outlook” or similar terminology. These statements are based on and reflect our current expectations, estimates, assumptions and/ or projections, our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections, including with respect to the future earnings and performance or capital structure of Karman, will prove to be correct or that any of our expectations, estimates or projections will be achieved.

Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation, that we are unable to close the transaction in the third quarter of 2026 or at all, that we will able to achieve the anticipated operational, financial and other benefits of the transaction in the amounts, on the levels or within the anticipated timeframes; a significant portion of our revenue is generated from contracts with the United States military and U.S. military spending is dependent upon the U.S. defense budget; U.S. government contracts are subject to a competitive bidding process that can consume significant resources without generating any revenue; our business and operations expose us to numerous legal and regulatory requirements, and any violation of these requirements could materially adversely affect our business, results of operations, prospects and financial condition; our inability to adequately enforce and protect our intellectual property or defend against assertions of infringement could prevent or restrict our ability to compete; and we have in the past consummated acquisitions and intend to continue to pursue acquisitions, and our business may be adversely affected if we cannot consummate acquisitions on satisfactory terms, or if we cannot effectively integrate acquired operations. Readers and/or attendees are directed to the risk factors identified in the filings we make with the SEC from time to time, copies of which are available free of charge at the SEC’s website at www.sec.gov under Karman Holdings Inc.

The forward-looking statements included in this announcement are only made as of the date of this announcement. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable law.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20260720717950/en/

Contacts:

Investor inquiries:
Steven Gitlin
investors@karman-sd.com

Media inquiries:
press@karman-sd.com

Source: Karman Space & Defense