The private equity firm Platinum Equity on Tuesday said it has agreed to acquire global mission services provider PAE from its current owner, the private equity firm Lindsay Goldberg, LLC.
Terms of the deal, which is expected to close by the end of February subject to regulatory approvals, were not disclosed.
Lindsay Goldberg acquired PAE from Lockheed Martin [LMT] in 2011 after the giant defense contractor said the business didn’t fit with its long-term strategy. Lockheed Martin acquired PAE, then known as Pacific Architects in Engineers, in 2006 for just over $600 million.
Northern Virginia-based PAE provides peace keeping, infrastructure support, disaster relief, aviation services, integrated security solutions, test and training ranges, and counter-terrorism products. In 2015 PAE acquired A-T Solutions, which provided it with a wide range of counter-threat and counter-terrorism services, and the Global Security and Solutions business of Altegrity’s US Investigative Services, LLC, company.
“We look forward to partnering with PAE’s management team to drive continued growth and help maximize operational performance throughout the business,” Louis Samson, a partner with Platinum Equity, said in a statement. “PAE has a strong management team, long-term customer relationships and dedicated employees delivering vital services around the world.”
Since the acquisition by Lindsay Goldberg, PAE has more than tripled in size, a company spokeswoman told Defense Daily. PAE doesn’t provide its sales figures.
John Heller, PAE’s CEO, said in a statement that the company has diversified its portfolio through acquisitions and “significant organic growth.” He added that “We are well positioned to address a growing number of our nation’s most critical national security and foreign policy mission requirements and continue our organic and inorganic growth by leveraging over 60 years of proven performance.”
When Lockheed Martin owned PAE its largest customer was the State Department. Now the Defense Department is its largest customer.
Platinum Equity, which is based in Los Angeles, has more than $6 billion of assets under management. A review of its portfolio of companies on its website shows Platinum Equity to be industry agnostic with a range of companies in industries that include media and entertainment, telecommunications, transportation and logistics, manufacturing, IT services, and equipment rental. PAE would be the only national security-oriented firm in its holdings once the deal is completed.
Houlihan Lokey and Morgan Stanley served as financial advisers to PAE on the transaction, the spokeswoman said.