Defense Base Act Compensation Blog

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Cerberus Capital Management expected to buy defense contractor DynCorp International of Falls Church

Posted by defensebaseactcomp on April 12, 2010

Cerberus Capital Management, a New York-based private investment firm, is expected to buy DynCorp International of Falls Church in a deal worth roughly $1.5 billion.

DynCorp, a publicly traded defense contractor, said in a news release Monday that its board of directors will recommend that stockholders approve the transaction. Under the deal, stockholders will receive $17.55 in cash for each share of DynCorp common stock. Cerberus is financing the deal with equity and debt from Bank of America Merrill Lynch, Citigroup Global Markets, Barclays Bank PLC and Deutsche Bank Securities.

“I believe that under this partnership with Cerberus, DynCorp International will be able to build on our extensive heritage and successful performance to continue to achieve our growth objectives,” said William L. Ballhaus, president and chief executive of DynCorp. “This transaction is a major milestone for DynCorp International’s continued leadership in serving our customers and supporting U.S. national security and foreign policy objectives.”

Timothy F. Price, managing director at Cerberus, said in a statement that the deal “underscores our successful track record in the government services sector and furthers our goal of continuing to grow our portfolio in this area.”

DynCorp specializes in police training, security and logistics work overseas, including in Iraq and Afghanistan. It has roughly 30,000 employees worldwide

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