Private-equity firm Cerberus Capital Management LP is among the
suitors for Lockheed Martin Corp.'s (LMT) Pacific Architects and
Engineers division, which is being marketed for about $500 million,
Reuters reports Monday, citing people familiar with the matter.
The division's asking price is about seven to eight times its
earnings before interest, tax, depreciation and amortization, or
Ebitda, the sources said.
They said Cerberus is interested in the division, which provides
military training services, because of potential synergies between
it and DynCorp, the defense contractor Cerberus took private for $1
billion in April.
PAE, which Lockheed put up for sale in June nearly four years
after its 2006 purchase, has also drawn interest from several U.S.
engineering and construction companies such as KBR Inc. (KBR),
Jacobs Engineering Group Inc. (JEC), Fluor Corp. (FLR) and URS
Corp. (URS).
Lockheed, of Bethesda, Md., has hired Evercore to run the
auction, is planning management meetings with the interested
parties this week, in hope of reaching a deal by year's end, the
sources told Reuters.
Representatives for Cerberus, Lockheed, Evercore, KBR and URS
declined to comment. Fluor and Jacobs Engineering weren't available
to comment.
Full story at
http://www.reuters.com/article/idUSN279457520100927
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