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Year
May 21, 2010
Gichner Holdings sold to Kratos Defense & Security Solutions.
Datamonitor Financial Deals Tracker
May 21, 2010
Deal In Brief:
Altus Capital Partners, Inc., an investment company, has sold Gichner Holdings, Inc. to Kratos Defense & Security Solutions, Inc. (Kratos), a provider of critical engineering, information technology services and warfighter solutions. All the three entities are based in the US.
Gichner is a manufacturer of shelters, modular containers, subsystems and support equipment for the US military and defense prime contractors.
Announcement (April 12, 2010):
Altus Capital has entered into a definitive agreement to sell Gichner to Kratos for approximately $133 million in cash or approximately 7.5 times the expected last 12 months EBITDA at close.
Following the acquisition, Gichner will become part of Kratos’ Weapons System Solutions Division. The transaction is expected to close during Kratos’ fiscal second quarter ending
June 27, 2010.
Riley & Co., LLC and Jefferies & Company, Inc. are acting as financial advisors to Kratos and Gichner respectively.
The transaction is expected to close on June 27, 2010.
Deal Value (US$ Million) – 133
Deal Type – Private Equity
Sub-Category – Exit
Deal Status – Completed: 2010-05-19
Deal Participants:
Target (Company) Gichner Holdings, Inc.
Acquirer (Company) Kratos Defense & Security Solutions, Inc.
Deal Rationale:
The acquisition will strengthen Krato’s overall capabilities in providing unique weapon system solutions to its primary customers. It will allow Kratos’ strategy and position as a National Security Solutions provider and federal government contractor in the areas of weapon system upgrade, sustainment and life cycle extension, war fighter systems sustainment, equipment reset and C5ISR.
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