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Aerospace and Defense Update: Second Quarter 2010

Deloitte Corporate Finance LLC



This quarter’s Aerospace & Defense Update, produced by Deloitte Corporate Finance LLC (DCF),summarizes the most recent transactions within this industry along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.

Highlights include:

  • President Obama has set a deadline of August for the end of the combat mission in Iraq and the end of 2011 as a target date for the withdrawal of all American troops, with a continued focus on national stability between those dates.
  • Two transactions announced in April highlight the fact that deals are being pursued and completed.
    • DynCorp International, a provider of law enforcement training, security, base operations, linguistics and logistics services and support to the U.S. government has been purchased by Cerberus Capital Management for approximately $1.5 billion (representing a nearly 50 percent premium to prior trading levels and an Implied Enterprise Value to LTM EBITDA multiple of approximately 5.6x).
    • Gichner Holdings, a provider of tactical and other shelters, products, solutions, modular containers, subsystems and support equipment to the U.S. military, is being acquired by Kratos Defense & Security Solutions for approximately $133 million (an Implied Enterprise Value to LTM EBITDA multiple of approximately 7.5x).
  • We continue to witness pent-up demand for A&D acquisitions, especially with the continued levels of cash on hand at potential acquirers.

Download the Aerospace & Defense Update below.

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