SK Capital Partners, a New York-based private investment firm specializing in specialty materials, ingredients, and life sciences, has signed a definitive agreement to acquire the North America Composites & Fuel Containment (CFC) Division from Parker Hannifin Corporation (NYSE: PH). The CFC Division is a key provider of engineered carbon fiber composite components and fuel containment solutions for the defense and commercial aerospace markets. It generates annual sales of around $350 million, operates six manufacturing facilities across North America, and employs approximately 1,700 people.
Jared Kramer, Principal at SK Capital, stated, “CFC has a rich history of delivering differentiated material science solutions for top aerospace and defense customers. We are excited to partner with CFC’s team to continue providing excellence for its customers and their critical applications.”
Jack Norris, Managing Director at SK Capital, commented, “SK Capital has a strong track record of turning non-core businesses from larger companies into thriving independent entities. We are very enthusiastic about acquiring Parker’s CFC Division and see significant potential for implementing our growth strategy.”
SK Capital’s portfolio includes several companies within the aerospace and defense value chain, such as Luxium Solutions, which produces specialty materials and systems for photonics applications. As part of the CFC acquisition, SK Capital collaborated with aerospace and defense executive Larry Resnick, who will continue his involvement as a member of the business’ Board of Directors post-acquisition.
The transaction is expected to close in the fourth quarter of 2024. Legal counsel for SK Capital was provided by Latham & Watkins LLP. Financial advice was given by J.P. Morgan Securities LLC, with committed debt financing from HPS Investment Partners, LLC. Parker Hannifin was advised exclusively by Lazard and legally represented by Jones Day.
