Kratos Defense & Security Solutions [KTOS] on Monday said it has agreed to acquire Gichner Holdings, a designer, producer and integrator of tactical shelters and modular containers for military systems, for $133 million in cash.
The pending acquisition, which is slated to close by June 27, would provide Kratos with new capabilities, customers, contract vehicles and service offerings, Eric DeMarco, president and CEO of Kratos, said in a statement.
The deal also fits with other aspects of Kratos’ growth strategy which includes expanding “our strengths in the areas of weapons system sustainment, C5ISR (Command, Control, Communications, Computers Combat Systems, Intelligence, Surveillance and Reconnaissance), military equipment preset and reset, and foreign military sales,” DeMarco said. “We are confident that this acquisition will provide significant cross selling opportunities, enable Kratos to pursue new and larger contracts and programs, and will be a catalyst for future organic growth.”
Gichner’s shelters support a range of military systems and products including weapons systems, unmanned aerial systems, C5ISR systems, and related military vehicles and warfighter support. Specific products that are supported include the MQ-1C and RQ-7 UAVs, the Persistent Threat Detection System, Command Post Platform, Patriot surface-to-air missile system, and the DDG-1000 Zumwalt-class destroyer.
Gichner will become part of Kratos’ Weapons System Solutions Division, which provides a range of support services for logistics, engineering, target operations, international programs and sub-orbital rockets.
Gichner is based in Pennsylvania and has 950 employees. Jefferies & Co. served as Gichner’s financial adviser on the deal. B. Riley & Co. was Kratos’ financial adviser.