AE Industrial Partners to acquire stake in Firefly Aerospace

AE Industrial Partners, LP (AEI, Boca Raton, Fla., U.S.), a U.S.-based private equity firm specializing in aerospace, defense amd government services, space, power and utility services, and specialty industrial markets, announced on Feb. 24 that it has reached a definitive agreement to acquire a significant stake in Firefly Aerospace Inc. (Cedar Park, Texas, U.S.), an emerging leader in economical launch vehicles, spacecraft and in-space services, from Noosphere Venture Partners LP (Menlo Park, Calif., U.S.). Transaction closing is subject to the satisfaction of regulatory approvals, including Hart-Scott-Rodino (HSR) clearance. Other terms of the transaction were not disclosed.

With the acquisition of Noosphere’s stake in Firefly, AEI will further expand its robust space investment portfolio, which includes investments in Redwire Space (Jacksonville, Fla., U.S.) and Sierra Space (Louisville, Colo., U.S.). Firefly raised Series A financing in May of 2021 at a $1.1 billion valuation, and performed its first launch of Alpha, its flagship composites-intensive launch vehicle, in September, and its second vehicle is awaiting necessary approvals ahead of its launch. Firefly has also recently completed the “critical design review” phase for its Blue Ghost Lunar Lander Program, bringing the company one step closer to launching in late 2023.

Having recently achieved several major milestones, Firefly is at an inflection point and AEI’s acquisition will reportedly enable Firefly to realize the significant opportunities ahead. AEI’s portfolio companies have a history of serving as strategic partners to the top national security agencies, including the Department of Defense (DOD). AEI believes that leveraging this experience will be a critical advantage as Firefly looks to secure additional U.S. federal government contracts.

Headquartered in Cedar Park, Texas, Firefly is committed to providing economical and convenient access to space for small payloads through the design, manufacturing and operation of reliable launch vehicles (see “The Alpha launch vehicle: Designing performance in, cost out”). The company leverages commercial off-the-shelf (COTS) components, manufactured by suppliers across the U.S. to reduce risk, maximize reliability and minimize development time, while addressing the market’s need for flexible access to space with a “simplest/soonest” approach to technology selection. Firefly is committed to restoring U.S. leadership in the small- to-medium launch market, while establishing international strategic partnerships to effectively serve the global market.

Covington & Burling LLP served as legal advisor and Ernst & Young served as financial advisor to AEI. DLA Piper LLP (U.S.) and Kirkland & Ellis LLP served as legal advisors, and Jefferies LLC served as the exclusive financial advisor to Noosphere Venture Partners.