MRO & Manufacturing
Velocity One Acquires Kaney Aerospace to Expand Aerospace Capabilities
Velocity One completes acquisition of Kaney Aerospace, enhancing its aerospace portfolio with electromechanical actuation and growth in Advanced Air Mobility.
This article is based on an official press release from Velocity One.
Velocity One Expands Aerospace Platform with Acquisitions of Kaney Aerospace
On February 24, 2026, Velocity One announced the completion of its acquisition of Kaney Aerospace, a Rockford, Illinois-based provider of high-performance engineering and Manufacturing solutions. Backed by private equity firm Charlesbank Capital Partners, Velocity One is utilizing this transaction to integrate Kaney’s specialized capabilities in electromechanical actuation and motion control into its broader aerospace and defense portfolio.
According to the company’s official statement, this acquisition represents a strategic effort to diversify Velocity One’s technical offerings. By bringing Kaney Aerospace into the fold, the platform aims to strengthen its position as a comprehensive provider of mission-critical subsystems for the aerospace, defense, and medical markets. The deal specifically targets growth opportunities in the emerging Advanced Air Mobility (AAM) sector, where Kaney has established early adoption of its servo and autopilot technologies.
Strategic Rationale and Deal Structure
The acquisition aligns with Velocity One’s Strategy to aggregate specialized Tier 2 and Tier 3 manufacturers into a unified platform. Kaney Aerospace joins three existing operating units within the Velocity One structure, Cartridge Actuated Devices (CAD), EMCORE Corporation, and Aerosphere Power.
In the press release, the company highlighted that Kaney’s expertise in motion control fills a specific gap in the platform’s existing capabilities, which previously focused on energetic devices, inertial navigation, and power electronics. The transaction was supported by RBC Capital Markets, acting as the sell-side financial advisor for Kaney, and Foley & Lardner LLP, which served as legal counsel for Velocity One.
Leadership Commentary
Executives from both organizations emphasized the complementary nature of the merger. John Borduin, CEO of Velocity One, stated that the move is a critical step in building a scaled, differentiated platform.
“The addition of Kaney Aerospace marks an important step in our strategy to build Velocity One into a scaled, differentiated aerospace and defense platform. Kaney brings deep technical experience, longstanding customer relationships, and a strong track record in highly engineered actuation and power solutions.”
John Borduin, CEO of Velocity One
Jeffrey J. Kaney, Sr., CEO of Kaney Aerospace, noted that the financial backing from Velocity One would accelerate research and development efforts.
“Velocity One’s financial backing and leadership strengthen our ability to fund breakthrough R&D and advance higher-performance products that meet the evolving needs of aerospace and defense customers.”
Jeffrey J. Kaney, Sr., CEO of Kaney Aerospace
Company Profiles and Market Focus
Velocity One
Headquartered in Hoboken, New Jersey, Velocity One operates as a holding company designed to acquire and grow specialized aerospace businesses. Its portfolio includes:
- EMCORE Corporation: A provider of inertial navigation systems, acquired in March 2025.
- Cartridge Actuated Devices (CAD): A manufacturer of energetic and pyrotechnic devices.
- Aerosphere Power: A specialist in aircraft power electronics.
Kaney Aerospace
Kaney Aerospace operates out of Rockford, Illinois, and maintains a diverse portfolio of engineering services and manufacturing capabilities. The company’s core competencies include autopilot actuation systems, cockpit instrumentation, and “Iron Bird” test rigs for system integration. Additionally, Kaney operates an FAA Part 145 and EASA-certified repair station.
Beyond traditional aerospace and defense, Kaney has diversified into the medical device market, providing precision gearing for surgical tools. This diversification offers a revenue stream that is distinct from the cyclical commercial aviation market.
AirPro News Analysis
Consolidation in the Supply Chain
This acquisition reflects a continuing trend in the aerospace supply chain where private equity-backed platforms aggregate specialized manufacturers. By combining distinct but complementary entities like EMCORE, CAD, and now Kaney, Velocity One can potentially lower overhead costs and increase bargaining power with prime contractors such as Boeing and Lockheed Martin.
The Shift to Electrification
The inclusion of Kaney Aerospace positions Velocity One to capitalize on the industry’s “More Electric Aircraft” (MEA) initiative. Kaney’s focus on electromechanical actuation, technology that replaces traditional heavy hydraulic systems, is critical for the development of electric vertical takeoff and landing (eVTOL) vehicles. As the Advanced Air Mobility (AAM) sector matures, demand for lightweight, high-reliability electric servos and actuators is expected to rise, validating the strategic logic behind this acquisition.
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