BGF, the UK and Ireland’s most active growth investor, has agreed to sell Walker Precision Engineering to Karman Space & Defense, marking a significant cross-border deal in the aerospace and defence sector.
The transaction will see US-headquartered Karman (NYSE: KRMN), a leader in integrated systems for space and defence applications, acquire the Essex-based manufacturer as part of its global expansion strategy. The deal provides Karman with a strategic foothold in Europe, complementing its existing network of 17 sites across the United States.
BGF is expected to generate a strong return on its minority investment in Walker, which it first made in 2017. During this period, Walker has more than doubled its annual revenues, supported by substantial investment in infrastructure and capability. This includes the development of a purpose-built facility in Basildon, the introduction of specialist machinery, and expanded capacity at its manufacturing site in Poland.
Founded in 1979, Walker Precision Engineering has built long-standing relationships with major defence primes, positioning itself as a vertically integrated manufacturing partner delivering mission-critical components. The business has further strengthened its operational capabilities in recent years following the appointment of CEO George Adams and a refreshed senior leadership team.
George Adams said the partnership with BGF had been instrumental in driving the company’s growth trajectory. “The relationship built with Michael and the team at BGF has been instrumental in helping Walker reach this stage of growth,” he said. “Their support has gone far beyond capital, providing strategic guidance while allowing us to retain our long-term vision and culture as a family business.
“Joining the Karman family marks an exciting new chapter that will allow us to build on the strong foundations we have established across the aerospace, defence and space sectors.”
Michael Berger, Portfolio Director at BGF, highlighted Walker’s transformation during the investment period. “The Walker team has built an exceptional business with a reputation for engineering excellence,” he said. “BGF has been privileged to support its journey over the past eight years, from multiple rounds of investment to strengthening the management team. Joining Karman represents an excellent long-term fit for the business.”
In Case You Missed It:
The acquisition is expected to enhance Karman’s offering by integrating Walker’s advanced manufacturing capabilities and established customer relationships. Together, the combined business aims to deliver expanded solutions to customers tackling increasingly complex, mission-critical challenges.
Kroll acted as exclusive sell-side advisor to Walker and its shareholders. Dafydd Evans, Managing Director at Kroll Securities, described the deal as a strategic milestone. “Walker has become a highly critical Tier 1 supplier to leading primes during BGF’s investment period,” he said. “This transaction provides Karman with a strong entry point into the fast-growing European defence market and reinforces our expertise in delivering complex cross-border transactions in the aerospace and defence sector.”
