Case Studies

Novaria Group

novaria group logo

Novaria Group is a cohesive family of precision component companies that consistently delivers optimum performance and sustainable growth within the aerospace & defense marketplace.

Overview

Novaria Group was founded in 2011 by Bryan Perkins and Earl Larkin. Both of whom had successful careers at Parker Aerospace, but saw an opportunity in the Tier 2 & 3 aerospace supply chain and decided to set out on their own. Their vision for Novaria was to build a cohesive family of precision component manufacturing companies, a sum made greater by the value of its parts, which consistently delivered optimum performance and sustainable growth.

Soon after starting Novaria, they acquired Fitz Aerospace and immediately went to work improving the operations of the business, achieving double digit percentage revenue and EBITDA growth in the first two years of ownership. After their early success at Fitz, Bryan and Earl started to contemplate their next acquisition opportunity. However, in order to consummate another sizeable transaction, Novaria needed to find an additional equity partner and strategic advisor. With a long history of success investing in precision manufacturing businesses, Rosewood had an interest in the aerospace sector for quite some time before meeting the Novaria team. As Rosewood began to understand the nuances of the aerospace supply chain, it became apparent that a strategic partnership would be the best way to enter the market. Rosewood and Novaria became acquainted in early 2014 and by mid-2014, Novaria, with Rosewood’s support, had executed a letter of intent to acquire the assets of Weatherford Aerospace. The underwriting and due diligence process was a joint effort between the Rosewood and Novaria team and the deal closed in early October 2014.

Concurrent with closing the Weatherford transaction, Rosewood formalized our relationship with Novaria by simultaneously conducting due diligence of Fitz Aerospace, negotiating the value of Novaria with its original capital partners, updating the company agreement, implementing new management contracts, bridging a valuation gap with a creative waterfall structure, converting Fitz from a C-corp to an LLC, and buying out the remaining equity of Fitz’s original founder. After a lot of hard work by all parties involved, the agreements were finalized making Rosewood a substantial shareholder in Novaria, and Novaria owned Weatherford Aerospace.

Since the acquisition of Weatherford, Rosewood had been an integral partner for Novaria in its significant growth. Notably, Rosewood has led the execution of eight additional acquisitions and facilitated a syndicated corporate debt facility to allow for continued growth. Our acquisitions have included a bankruptcy process and corporate carve out, along with proprietary deals and auction processes. With the backing of Rosewood, Novaria was able to hire additional resources at the corporate level to support ongoing growth and subsidiary integration.

While it is still early in Rosewood’s ownership of Novaria, the Novaria story is a great example of Rosewood’s philosophy of partnering with strong management teams, investing for the long-term, engaging in buy-and-build strategies in certain industries of focus, and adding value above and beyond its capital investment. Rosewood is not afraid of complex, storied transactions where our flexibility and patience can be of significant benefit.




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