(Bloomberg) -- Trive Capital is exploring options including a sale or initial public offering of Karman Space & Defense, according to people familiar with the matter.
The private equity firm is working with advisers on a potential deal that could value Karman at about $3 billion or more, the people said. The firm has sounded out possible suitors for Karman, which is expected to attract interest from private equity firms, the people said.
A listing for the Huntington Beach, California-based supplier to firms including Northrop Grumman Corp. and Lockheed Martin Corp. could raise $400 million to $500 million, one of the people said.
No final decisions have been made on whether to pursue a sale or an IPO and details such as size and valuation could change, the people said, asking not to be identified because the information is confidential. Representatives for Karman and Trive didn’t immediately respond to requests for comment.
Karman makes integrated systems for space, missile, hypersonic and defense programs, according to a recent statement on its website. In addition to its California locations, it has facilities in Alabama and Washington state, as well as in Washington, DC.
The company assisted with hardware and systems for the Vulcan rocket developed by Boeing Co. and Lockheed Martin’s United Launch Alliance joint venture, the statement showed. ULA launched Vulcan in October on a key test mission.
Based in Dallas, Trive Capital has more than $7 billion of regulatory assets under management, its website shows. It partnered with the senior leadership of Aerospace Engineering Corp. and AMRO Fabricating Corp. to create Karman, according to a 2021 statement.
--With assistance from Eric Johnson.
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