Veritas explores Chromalloy sale after air travel resilience - Bloomberg

Buyout firm Veritas Capital is exploring a sale of aerospace aftermarket company Chromalloy Corp. that could fetch more than $10 billion, according to Bloomberg, citing people familiar with the matter.

Veritas is working with financial advisers to gauge interest in Chromalloy, the people said. Veritas is expected to reach out to potential buyers in the coming weeks, barring a sudden change in market conditions, the people said.

With air travel’s resilience driving interest in assets supporting the ecosystem, Palm Beach Gardens, Florida-based Chromalloy is likely to draw bids from rival companies and private equity suitors, the people said.

Deliberations are at an early stage and Veritas could decide against pursuing a sale, the people said. The backer could also elect to take the company public or to keep the asset, they added.

Veritas bought Chromalloy from rival Carlyle Group Inc. in 2022 for an undisclosed sum. The company provides aftermarket solutions for aerospace engines and industrial gas turbines and produces FAA-approved replacement parts along with repair and resell services.