San Diego, California-based Kratos Defense & Security Solutions Inc. has acquired an 80.1% interest in Florida Turbine Technologies Inc. and FTT Core LLC for $60 million, consisting of $33 million in cash and $27 million in Kratos common stock. Kratos has an option to acquire the remaining 19.9% of FTT at a future date.
This acquisition is expected to accelerate FTT’s small engine development programs and facilitate integration of these engine solutions with evolving Kratos tactical systems. FTT will be part of the Kratos Turbine Technologies (KTT) Division, which will be focused on the development and production of small, affordable, high-performance, jet engines for the next generation of tactical weapon systems and tactical jet unmanned aerial systems (UAS). The KTT division will be part of the Kratos Government Solutions (KGS) Segment.
FTT, based in Jupiter, Florida, with offices in Oklahoma, Puerto Rico, Canada, Germany, and the United Kingdom, was founded in 1998 by Shirley and Joseph Brostmeyer. Joe and Shirley will remain directly involved with the company as a part of Kratos. What started as an engineering services firm has evolved into a turbomachinery design and manufacturing company specializing in engineering, development, and testing of gas turbines, propulsion components, and systems for military and commercial applications.
Steve Fendley, Kratos Unmanned Systems division president said, “We pride ourselves on being a disruptive alternative in the unmanned systems arena; FTT engine systems integrated with our jet UAS, are expected to multiply our disruptive offering.
Kratos has appointed Stacey Rock as president of KTT. Stacey has served in a variety of technical and leadership roles, most recently as senior vice president of the weapons and defense solutions business unit within the Kratos Defense Rocket Support Services Division.
Eric DeMarco, CEO of Kratos said, “Beyond traditional turbojet and turbofan engines, we are also focused on developing advanced, affordable engines for a new class of hypersonic propulsion system.”
Canaccord Genuity served as financial advisor to Kratos in connection with the transaction and Paul Hastings LLP served as legal counsel.