Karman (KRMN) investor relations material

Deal rationale and strategic fit

• Expands into high-priority maritime defense by acquiring Seemann Composites and MSC, adding naval and submarine capabilities to existing air, ground, and space domains.

• Deepens advanced materials IP portfolio and adds a specialized material science team for next-generation materials.

• Acquisition aligns with strategy to deliver advanced system solutions for national security, supporting critical weapons systems and broadening market reach from deep sea to deep space.

• Provides access to multi-decade, funded U.S. Navy programs and significantly increases exposure to top-priority naval initiatives.

• Seemann’s capabilities and business model are highly complementary, enabling cross-market technology leverage and tip-to-tail solutions for critical defense systems.

Financial terms and conditions

• Total consideration is $220 million: $210 million in cash and $10 million in stock.

• Expected LTM net leverage ratio at year-end 2026 is about 3x adjusted EBITDA.

• Transaction is immediately accretive to revenue, EBITDA, EPS, and cash flow, with management affirming prior 2025 guidance.

Synergies and expected cost savings

• Integration will enable cross-selling of new products and technologies to an expanded customer base and leverage proprietary resins across markets.

• Adds unique production capabilities in maritime and hypersonics, including advanced resin infusion, 3D printing, fiber weaving, and AFP.

• Enhances vertical integration and ability to deliver technologies rapidly from concept to production.