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Blackstone-Backed ARKA Group Running Sale Process With JPMorgan

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Reporting: Collin Krabbe

Blackstone-backed defense technology company ARKA Group is exploring a sale with JPMorgan, according to sources.

JPMorgan has distributed books to potential bidders as part of the auction process for ARKA, which generates roughly $150 million in EBITDA, sources said.

Blackstone’s Tactical Opportunities platform invested in ARKA in 2019, subsequently executing a follow-on investment the next year, according to the sponsor’s website.

Danbury, Conn.-based ARKA provides software and hardware services for space and defense, with expertise in robotics and optics, among other high-tech capabilities.

Last year, ARKA announced the completion of an $85 million expansion providing modern cleanrooms for telescopes and payloads. The company is led by President and CEO Andreas Nonnenmacher.

Government contracts for ARKA, under its Danbury Mission Technologies alias, this year include a $136 million five-year contract from the U.S. Army Contracting Command and a $95 million contract from the Defense Logistics Agency.

ARKA’s formation was the result of several business combinations, starting with the acquisition of AMERGINT Technologies in 2019, which was followed by AMERGINT’s investment in Tethers Unlimited the next year. ARKA also bought Danbury Mission Technologies, The Strategem Group, Lumacron Technology Ltd. and Maxar’s radar and sensor technology group.

Defense technology companies in Octus’ BDC Database include Mantech International Corp., which has a first lien term loan at SOFR+500 bps from Blackstone Private Credit Fund that matures in September 2029. The business development corporation was listed as a debtholder as of November.

Aerospace and defense businesses on the market include Stanley Black & Decker-backed Consolidated Aerospace Manufacturing, which is exploring a sale with Evercore, Octus previously reported. Other recent deal activity includes Arkview Capital’s buyout of NeoTech, which was financed with a $200 million term loan provided by Canyon Partners and Crestline Investors, priced at SOFR+625 bps with a 50-bps step-down to SOFR+575 bps if leverage decreases to 3.25x, sources told Octus.

JPMorgan declined to comment. ARKA Group and Blackstone did not respond to requests for comment.

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