- Castelion closed a more than $1 billion funding round co-led by Carlyle, reflecting blue-chip firms’ growing interest in a booming corner of the defense industry.
- The Series C financing announced Aug. 19 includes $800 million in equity and a $250 million committed revolving credit facility.
- Castelion said the financing values the four-year-old startup at $13 billion.
- The new investment will boost planned production of Blackbeard, Castelion’s hypersonic missile, and fund development work on a bigger hypersonic strike weapon and a mass-produced air-defense missile.
- Castelion is a defense-tech startup seeking to mass produce lower-cost hypersonic weapons and has raised more than $1 billion in new financing to expand missile production.
- The funding will expand production of Blackbeard at its manufacturing complex in Sandoval County, New Mexico, while accelerating work on a longer-range precision strike weapon and defensive systems.
- The initial fielding of Blackbeard is targeted for 2027, with the U.S. Navy emerging as its main customer.
- The U.S. Navy awarded Castelion about $50 million in February to advance Blackbeard, followed by a $105 million award in April for integration, testing, and certification on the F/A-18E/F Super Hornet.
- In June, the Navy placed a $23.4 million order for 50 pre-production Blackbeard weapons and 50 shipping and storage containers.
- Blackbeard is expected to cost roughly $384,000 per missile, significantly less than existing U.S. hypersonic weapons.
Carlyle Group has co-led a significant funding round of over $1 billion for Castelion, a California-based defense startup, to enhance its production capabilities for the Blackbeard hypersonic missile. This investment, which includes $800 million in equity and a $250 million revolving credit facility, underscores the growing interest from major firms in the hypersonic weapons sector.12345678912
Castelion aims to utilize the funds to not only ramp up production of the Blackbeard missile at its facility in Sandoval County, New Mexico, but also to accelerate the development of a longer-range precision strike weapon and advanced air-defense systems. The company, which has been valued at $13 billion, is targeting the initial fielding of the Blackbeard missile by 2027.
The U.S. Navy has emerged as a primary customer, awarding Castelion approximately $50 million in February to advance the missile's operational capabilities, followed by a $105 million contract in April for integration and testing on the F/A-18E/F Super Hornet. In June, the Navy placed a $23.4 million order for 50 pre-production units of the Blackbeard missile, which is expected to cost around $384,000 each, significantly lower than existing hypersonic weapons.1011
“Castelion plans to use the new funding to boost production of its Blackbeard hypersonic missile and develop a longer-range precision strike weapon. The U.S. Navy has emerged as its main customer, awarding Castelion approximately $50 million to advance Blackbeard toward operational capability.”
WSJ
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