Aronson Capital Partners Advises Tri-Star Engineering, Inc. on its Sale to G Force, Inc.
- Thursday, 16 April 2015 13:48
- Larry Davis
Aronson Capital Partners (“ACP”) is pleased to announce the acquisition of Tri Star Engineering, Inc. (“Tri Star” or the “Company”) by G Force, Inc. ACP served as the exclusive financial advisor to Tri Star in this transaction.
Headquartered in Bedford, IN, and strategically located close to the Naval Surface Warfare Center Crane Division (“NSWC Crane”), Tri Star provides the U.S. Navy with a wide range of services in the areas of electronic warfare, radar system prototyping, refurbishment, and repair support, information operations and support, life cycle logistics and systems engineering and integration services. The Company operates
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ACP Newsletter: Tier-1 Firms Report Cautiously Optimistic Outlook
- Thursday, 19 February 2015 16:36
- Abel Gizaw
With the appropriations bill providing a degree of visibility into the government fiscal year (“GFY”) 2015, the Tier-1 contractors reported solid results in Q4 while providing a cautionary outlook for fiscal year 2015. On numerous conference calls, corporate executives expressed concern over continued sequestration but were relatively optimistic with the growth prospects of their business, especially compared to their comments last year this time. Continue reading here.
Aronson Capital Partners is a leading middle-market investment bank focused exclusively on the government services and technology industry. We invite you to read our February 2015 Newsletter, featuring the following topics:
- Tier-1 Contractors Q4 Earnings Recap
- Selected M&A Transactions
- Government Services Industry Performance
- Public Company Comparables
- Recent Industry M&A Transactions
- Representative ACP Transactions
Please feel free to contact one of our principals with any questions.
Aronson Capital Partners Cited – Harris makes $4.75B deal for Exelis
- Monday, 09 February 2015 15:59
- Timothy Schmitt
Harris Corp. is buying Exelis in a $4.75 billion cash and stock deal that the company is calling transformational.
The deal will significantly increase the size of Harris, adding $3.25 billion in revenue to Harris’ $5 billion in revenue. Headcount will grow to 13,000 to 23,000. The transaction is expected to close by June.
Adding scale was definitely one of the factors the drove the deal, according to Harris executives and industry analysts.
“The combination of the two companies’ highly complementary core franchises creates a competitively stronger company with significantly greater scale,” said Harris CEO and chairman William Brown.
Much of that scale will come in the defense market, where Harris adds Exelis’ strong position to its own. Sixty-one percent of Exelis customer base comes from defense customers. About 75 percent of Harris’ revenue is DOD and intell related.
Exelis and Harris also both have significant international and commercial sectors. Pre-acquisition, the
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M&A Activity: 2014 Summary & 2015 Outlook
- Friday, 16 January 2015 20:56
- Abel Gizaw
2014 M&A Recap:
With 81 M&A deals announced in the Government Services market, transaction activity in 2014 increased by 25% compared to 2013 and was in-line with 2012 levels. Improved revenue visibility and better understanding of the new environment was a key factor to this volume increase. For public strategic buyers, higher company valuation, increased dry powder, and an attractive credit market contributed to the pickup in transaction volume. Similarly, well capitalized private and private equity-backed contractors deployed cash on their balance sheet and accessed the credit market to participate in the M&A market. Private equity sponsors remained active as they looked to invest a sizable amount of un-deployed private equity and traditional bank capital. Access to lower middle market leverage multiples combined with low interest rates contributed to the increase in M&A transactions.
In addition to M&A transactions, a continuing trend in Government Services market was the major divestitures and spin-offs of business segments. Rationale behind most of these transactions was to focus on core markets and capabilities, portfolio reshaping and to unlock value. Notable transactions of 2014 included QinetiQ’s sale of its North American business and Exelis’ spin-off of its Mission Systems
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