KippsDeSanto & Co. advises Pegasus Steel on its sale to ACP

KippsDeSanto & Co. advises Pegasus Steel, LLC on its sale to Arlington Capital Partners

KippsDeSanto & Co. advises Pegasus Steel, LLC on its sale to Arlington Capital Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, Pegasus Steel, LLC (“Pegasus” or the “Company”), to Arlington Capital Partners (“Arlington”), a Washington, DC-area private equity firm.

Headquartered near Charleston, South Carolina with approximately 350,000 square feet of manufacturing space, Pegasus is a leading provider of complex fabricated steel structures used for the construction of submarines, aircraft carriers, and other naval and industrial systems primarily to the U.S. Department of Defense (“DoD”). Employing a comprehensive array of advanced steel processing equipment, Pegasus cuts, forms, machines and welds a broad range of materials and can process small piece parts to extremely large and complex welded fabrications.

Pegasus is a critical vendor in the supply chain for the Navy’s highest priority programs, providing complex large-scale components to the Columbia- and Virginia-class submarines, as well as the Gerald R. Ford-class aircraft carriers. Pegasus’s large-scale, highly-specialized nuclear welding expertise requires years of production experience, exacting standards, skilled, certified employees, and specialized equipment.

The acquisition is a new platform for Arlington, allowing Pegasus to partner with Arlington at a key inflection point in its growth trajectory to build towards becoming a leading ‘tier one’ supplier in the nuclear Navy supply chain.

This transaction highlights several key trends in the Aerospace and Defense markets as submarine and aircraft carrier supply chain pressures limit the Navy’s ability to meet future fleet goals and deterrence objectives:

  • Nuclear shipbuilding remains a critical priority in the naval supply-chain, with the Navy investing towards building out the domestic industrial base
  • Growing demand for suppliers that can support large-scale shipbuilding driven by the Navy’s need to modernize and replace aging fleets
  • Nuclear-powered submarines, such as the Columbia- and Virginia-class, will continue to play a critical role for the Navy over the next two decades
  • Private equity activity in the market remains high as “buy-and-build” strategies continue to establish portfolio companies with strong customer reputations, industry-leading capabilities, and ability to scale

KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on 200 industry transactions since 2008, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships. There’s no substitute for experience. For more information, visit

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