El SEGUNDO, Calif.,
Aug. 9 /PRNewswire/ -- Wyle Inc., a
leading provider of high tech systems engineering, testing
and information technology services, has entered into a definitive
agreement to acquire CAS, Inc., a division of ITT Corporation
(NYSE: ITT). CAS is a premier Huntsville-based provider of systems
engineering and technical assistance services primarily to the U.S.
Department of Defense. The combined entity will have pro forma 2009
revenues of approximately $1
billion.
"This is an important addition to Wyle's business portfolio as
we continue to grow the company," said George Melton, Wyle chairman, CEO and
president.
"With the addition of CAS, Wyle will significantly diversify its
customer base. The Navy and the Army will now be our largest
customers. Additionally, while we have an existing presence in
Huntsville, this acquisition will
enhance our presence with key customers in this strategic
market."
CAS, founded in 1979, is deeply embedded within the Huntsville
Army community with long-term customer relationships and an
impressive track record of growth. The organization will become a
strategic business unit within Wyle's organization.
"With our engineering, systems analysis, simulation, software
development, cost, planning, logistics and operational analysis
capabilities and contracts, we are a perfect fit for Wyle's
operations," said George Prueitt,
CAS general manager. "Wyle already is doing those same things,
albeit for other customers in the Navy and NASA, so they have a
full understanding of our business."
Wyle intends to finance the acquisition with cash on hand,
approximately $20 million of equity
from its controlling shareholder, Court Square Capital Partners and
affiliates, and approximately $200
million of incremental debt. The acquisition will
result in pro forma total leverage of approximately 5.5x. The
acquisition may require an amendment under the Company's existing
Credit Facilities. As such, Wyle has obtained committed financing
from Barclays Capital and JP Morgan Chase in an amount sufficient
to fund the acquisition and to refinance the existing Credit
Facilities, if required. The closing of the acquisition is subject
to review and approval by regulatory authorities such as the FTC
and other customary closing conditions.
About Wyle, Inc.
Wyle, a privately held company, is a leading provider of
high-tech science, aerospace engineering and information technology
services to the federal government on long-term outsourcing
contracts. The company also provides test and evaluation of
aircraft, weapon systems, networks, and other government assets;
and other engineering services to the aerospace, defense, and
nuclear power industries.
About CAS, Inc.
CAS, Inc., based in Huntsville,
Ala., provides systems engineering and technical assistance
for a wide range of military applications, principally to the U.S.
Department of Defense and similar or related agencies. CAS,
Inc. employs approximately 1,100 people.
About Court Square Capital Partners
Court Square Capital is one of the most experienced private
equity firms in the industry. Since 1980, the group has invested in
over 170 transactions across a wide array of sectors including:
aerospace & defense, industrials, business services,
technology, healthcare, media and travel. Court Square Capital
currently manages more than $4
billion of aggregate capital commitments and is based in
New York, N.Y. For more
information please refer to Court Square's website at
www.courtsquare.com.
Contact:
|
|
Dan Reeder
|
|
(310) 563-6834
|
|
Ref.: NR/10-25
|
|
|
SOURCE Wyle
Copyright g. 9 PR Newswire