Two M&A Actions Announced Involving DynCorp and Kratos Defense

April 13, 2010 by Matthew Potter · View Comments
Filed under: Acquisitions, Boeing, Business Line, Companies, Contract Awards, Dyncorp, Earnings, Events, Kratos, Northrop Grumman Corp., logistics, production program, training 

Two defense related Merger & Acquisitions (M&A) were announced yesterday. One of these announcements involving DynCorp International (DCO) was the first blockbuster deal of the year. In the second Kratos Defense & Security Solutions, Inc. (KTOS) said they would be acquiring the maker of tactical shelters.

Cerebus Capital Management, most famous for their ill-fated purchase of Chrysler from Daimler Benz, has agreed to acquire DynCorp International in a deal worth about $1 billion. The proposed purchase of each share for $17.55 must still be approved by the shareholders.

DynCorp is best known for providing training and intelligence support to the U.S State Department and military in Iraq and Afghanistan. They are in hot competition with Xe Services for a large contract to provide training to the Afghan National Police (ANP).

Kratos will acquire Gichner Holdings, Inc. for roughly $133 million. Gichner makes tents, tactical shelters and other storage solutions mainly for military systems. They are used by UAV systems like the Predator and Reaper as well a the PATRIOT air defense system. This deal still needs regulatory approval.

While there were a substantial number of deals in the last twelve months a report by PriceWaterhouseCooper found that they were at a ten year low in total value. These figures were even more skewed by two large deals — the sale of TASC by Northrop Grumman (NOC) valued at over $1.6 billion and Boeing’s (BA) acquisition of Vought’s 787 production line.

If there is a contraction in defense spending by the U.S. and other countries as some have been expecting that might lead to more deals. In the Nineties when the Reagan build up ended with the “Peace Dividend” there was severe contraction in the U.S. defense industry with several major mergers and acquisitions.

Tags: , , , , , , , , , , , , , ,

DynCorp International To Support Building Afghan Army

February 18, 2010 by Matthew Potter · View Comments
Filed under: Business Line, Companies, Contract Awards, Countries, Dyncorp, Events, Services, U.S. Army, logistics, training 

DynCorp International was awarded a contract from the U.S. Army to provide support to the Combined Security Transition Command-Afghanistan (CSTC-A) and NATO Training Mission (NTM). These organizations are helping the Afghan Army and Security forces become more effective. The contract is for two years and worth over $150 million. If a third year option is exercised the value could increase to over $230 million.

DynCorp International will provide staff to support the CSTC-A as well as directly interact with the Afghan soldiers and policemen. The task of creating an effective internal security force is key to winning the fight against the Taliban and building a stable country.

Tags: , , , , , , , , ,

Taos Industries Team Wins LOGCAP IV Task Order in Afghanistan — Press Release

July 14, 2009 by Matthew Potter · View Comments
Filed under: Business Line, Companies, Contract Awards, Countries, Dyncorp, Events, IT, Press Releases, Services, U.S. Army, logistics 

Taos Industries Team Wins LOGCAP IV Task Order in Afghanistan

DynCorp International Heads Team with Taos Industries and CH2M HILL

HUNTSVILLE, Ala., July 13, 2009 – Taos Industries, a subsidiary of Agility Defense & Government Services, and its partners DynCorp International and CH2M HILL have been awarded a task order for logistics support for the Afghanistan-South Area of Responsibility (AOR) under the U.S. Army’s LOGCAP IV contract.

The value of the task order is $643.5 million for the one-year base period. The award also includes four one-year option periods valued at $5.874 billion. DynCorp International is the prime contractor, and Taos Industries and CH2M Hill are subcontractors on the LOGCAP IV team. The Army has directed the team to begin work immediately.

Under LOGCAP IV, the Army’s Logistics Civil Augmentation Program, contractors provide contingency services in support of the U.S. military.

Under the new task order, the team will provide existing bases in the Afghanistan South AOR with operations and maintenance support, including facilities management, electrical power, water, sewage and waste management, laundry operations, food services and transportation motor pool operations. In addition, the team will provide construction services for additional sites.

“As a proud member of the DynCorp International team, we look forward to delivering the excellent performance that has helped us to continually expand our scope of work for government customers,” said Joe Cosumano, president of Taos Industries.

This is the third task order award to the DynCorp-Taos Industries-CH2M HILL team. Under earlier task orders, the team provides:

* Services at Udairi Army Airfield in Kuwait. Those services include firefighting, fire protection support, equipment and vehicle maintenance, airfield operations, flight dispatch, air traffic control tower services, and weather observation and forecasting services.
* Logistics support services in Kuwait. Those services include movement-control operations, in-transit logistics management, facilities management, including base camp services, life support and operations and maintenance.

About Taos Industries Inc.

Taos Industries, based in Huntsville, Ala., is a subsidiary of Agility Defense & Government Services. Taos provides logistics and commodity services, specialized procurement, and household relocation services to the U.S. Department of Defense, Department of State, NATO and other government and defense customers. Taos offers base operations support, and defense reutilization and marketing services, as well as contingency operations and natural disaster support. Taos Industries has been supplying the U.S. government and its allies since 1991.

For more information about Taos Industries, contact Hobie Frady at 256.772.7743 or visit www.taos-inc.com.

About Agility Defense & Government Services

Agility Defense & Government Services is the public sector arm of Agility. It provides complete supply chain management, logistics services and commodity services to defense and government customers. With more than 550 offices in 120 countries, Agility DGS and its parent offer a vast network of global land, sea and air transportation capabilities, including warehousing and storage.

For more information, contact Jim Cox, Agility DGS vice president of public affairs and marketing, at 703.417.6050 or at jcox@agilitylogistics.com, or visit www.agilitylogistics.com.

About LOGCAP IV

For more information about the Logistics Civil Augmentation Program, visit http://www.army.mil/-news/2009/03/27/18864-army-segues-from-logcap-iii-to-iv/index.html.

# # #

Tags: , , , , , , ,

DynCorp Has A Record Year

June 5, 2009 by Matthew Potter · View Comments
Filed under: Business Line, Companies, Department of Defense, Dyncorp, Earnings, Events, IT, Services, logistics, training 

DynCorp International reported their fourth quarter and yearly results yesterday. The company had a record year with revenue up forty-five percent over the year prior. For the fourth quarter the defense contractor has revenues of almost a billion dollars. Earnings per share for the quarter doubled to 34 cents.

The company in April had reorganized into three business segments. These groups would focus on their market areas more easily and help to grow their business. One of the new segments, Global Linguist Solutions, was to be a joint venture with another company. By its name it is clear that DynCorp International does a great deal of business providing translator and intelligence support services to the U.S. military and other government services.

The company is quite confident that there guidance for 2010 will be met and most likely would exceed analyst estimates.

Tags:

Kuwait Buys AH-64 CLS

November 19, 2008 by Matthew Potter · View Comments
Filed under: Contract Awards, Dyncorp, FMS, Kuwait, Military Aviation, U.S. Army, logistics 

The US Army awarded DynCorp a contract to support the AH-64 Apache attack helicopters operated by Kuwait. MarketWatch has the press release here. The CLS contract is worth $11 M in the first year. Kuwait purchased a small number of these advanced aircraft through the US Army. DynCorp has other contracts with both the US and Kuwait governments to perform this type of work on other aircraft. Use of CLS, especially for non-combat systems, has been growing in the US and UK as it is considered cheaper as you do not have the associated personnel and training costs of using service personnel. Of course, CLS in support of FMS systems is also common as it is the simplest way for the nations to get the support they need for advanced weapons.

Tags: , , , , , , , ,

DoD clears way ahead for $4.6 Billion translation contract

March 16, 2008 by Matthew Potter · View Comments
Filed under: Contract Awards, Department of Defense, Dyncorp, L-3, Protest, logistics 

Dyncorp was cleared to go ahead and begin work on a $4.6 B contract it had won to provide translation services in Iraq to the US DoD. It had been protested by one of the losers. See the story here. L3 dropped the protest after it became part of the team that Dyncorp had set up to perform the services. That is one way around the protests process. Of course it helps that this is one large service contract with plenty of work to spread around. L3 was the incumbent who lost the contract.

Tags: , , , , , ,

>