Arcline taps banks for Arxis IPO
- Arxis generated USD 500m to USD 600m in 2025 EBITDA
- IPO expected around mid-year
- Comes amid aerospace and defense tailwinds
Arcline Investment Management has hired banks to pursue a public listing of the aerospace engineered components platform Arxis, said five sources familiar with the matter.
Goldman Sachs, Morgan Stanley and Jefferies are advising on the IPO, three of the sources said.
This won’t be a dual track process, two of the sources noted, adding the banks were hired with the intent to go public. An IPO may launch around the middle of this year, two sources said.
This news service reported last August that Arcline was preparing for a public listing of Arxis. Nashville, Tennessee-based Arcline had been rejecting inbound interest for parts of Arxis, which was another indication it was going forward with an IPO, it was further reported.
Arxis generated USD 500m to USD 600m in 2025 EBITDA, two of the sources said. The company was estimated to generate at least USD 1.5bn in revenue for 2025, as reported. Comps to Arxis are aerospace components makers TransDigm and HEICO, the report said.
An IPO is a logical next step after the company deployed substantial capital in the aerospace and defense sector on some bigger deals, a sector advisor said. Last June, Arxis, through its Integrated Polymer Solutions business, announced the acquisition of Oldham Seals Group, a manufacturer of highly engineered elastomeric and polymer products, for an undisclosed amount. And last month, the company announced the acquisition of Micro-Tronics (MTI), a provider of engineered, mission-critical elastomeric and metallic components for commercial aerospace and defense applications.
Given the strong, multi-year growth cycle in the aerospace and defense industry, and some of these bigger names that have gone public such as Loar Holdings and StandardAero, the sector advisor said a business like Arxis would be well received by investors. He added that StandardAero has done well from an initial valuation standpoint, trying to piggyback on TransDigm, which has a USD 72bn market capitalization. For this reason, the sector advisor expects the public debut to happen this year.
A spokesperson for Arcline Investment Management declined to comment. Goldman Sachs and Jefferies also declined to comment. Morgan Stanley did not return requests for comment.
