Platinum Equity Holdings announced that it has completed its acquisition of PAE from fellow private equity firm Lindsay Goldberg & Co. Based in Arlington, Virginia, PAE provides mission support and logistics services to government clients across the globe. Deal terms were not disclosed.
Fox Three Partners LLC announced that it has acquired Walashek Industrial & Marine Inc. Founded in 1986, Walashek provides customers, including the US Navy, with a full range of ship repair services including welding, piping, machinery and structural repair, marine propulsion repair, and auxiliary boiler repair. Fox Three Partners is an investment firm based in Virginia Beach, Virginia that focuses on the lower mid-market. Deal terms were not disclosed.
Ducommun Inc. announced that it has agreed to sell Miltec Corporation to San Diego-based General Atomics for a purchase price of $14.6 million in cash. Acquired by Ducommun in 2006 for $50 million and based in Huntsville, Alabama, Miltec provides engineering, technical and program management services to the DoD and Intel agencies. The business generated 2015 revenue of $28.2 million.
This was a bit of a surprising deal since General Atomics isn't exactly known as an acquirer in recent years, with most of its acquisitions occurring during the 1990's. However, they must have seen Miltec as a good opportunity to get complimentary capabilities at a good valuation (half times 2015 revenue). The GA press release states that Miltec will become part of GA's Electromagnetic Systems (EMS) group and will "accelerate GA's depth of knowledge in key technical areas of hypersonic vehicles, small satellites and related products and programs."
KippsDeSanto is the financial advisor to Ducommun on the transaction.
Tetra Tech Inc. announced that it completed the acquisition of Coffey International Limited on January 18, 2016. The deal was originally announced last October. Based in Sydney, Australia, Coffey provides technical and engineering solutions in international development and geoscience. For the fiscal year ended June 30, 2015, Coffee had revenues of $409 million and EBITDA of $17M (USD) resulting in an enterprise value to revenue multiple of 0.3x and EBITDA multiple of 7.3x.
xG Technology Inc. announced that it has entered into a agreement to acquire the assets of Mt. Olive, New Jersey-based Integrated Microwave Technologies LLC (IMT) from PE firm Skyview Capital LLC. The purchase price is $3M in a combination of cash and long-term debt. Skyview originally acquired IMT just fourteen months ago from the Vitec Group plc.
IMT's expertise is in advanced digital microwave systems and is a provider of engineering, integration, installation, and commissioning services to the Broadcasting, Sport & Entertainment and Military, Aerospace & Government markets. The company generated revenues of $7.2M in 2015.
The deal is expected to close by no later than February 15, 2016.
Los Angeles-based Platinum Equity Holdings (PEH) announced that it has agreed to acquire PAE from fellow PE firm Lindsay Goldberg LLC, which bought the company from Lockheed Martin in 2011 for $350M. Under Lindsay Goldberg's ownership, PAE has grown to approximately $1.4B in revenues, partially from four acquisitions including Defense Support Services LLC, the Applied Technology Division of CSC, the Global Security and Solutions business unit of USIS LLC, and most recently A-T Solutions Inc. which PAE acquired in June of 2015. Reuters had originally reported that Apollo Global Management was the leading bidder for PAE, ahead of PEH and American Securities.
PAE has over 15,000 employees worldwide and provides services including aviation, capacity building and stabilization, critical infrastructure, expeditionary logistics, identity and information management solutions, integrated security solutions, test and training ranges, training solutions, and hardware and software products that predict and prevent asymmetric threats. PAE's customers include DOD (Air Force, Army, Marines, Navy), DHS, DOE, DOJ, DOS, NASA, and UK Ministry of Defence.
Deal terms were not disclosed, however, earlier reports estimated the valuation of the business at close to $900M including debt. The transaction is expected to close by the end of February 2016.
Belcan LLC, a portfolio company of AE Industrial Partners LLC announced that it has acquired Oldsmar, Florida-based Tandel Systems Inc., a provider of engineering solutions, test systems, and technical services to government, defense, aerospace, and commercial clients. Tandel has over 215 employees and is a SeaPort-e prime contract holder.
Lance Kwasniewski, CEO of Beltran states: "Tandel’s advanced avionics and software development processes extends our end-to-end ability to support our clients from concept to aftermarket test and support. In addition, the company has a demonstrated ability to deliver firm, fixed-price contracts at high quality, integrating hardware and software.”
Kirkland & Ellis LLP served as legal advisor and PricewaterhouseCoopers LLP served as financial advisor to Belcan and AE Industrial Partners. Deal terms were not disclosed.
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