Veritas Capital, a leading private equity firm based in New York, announced today it has reached a definitive agreement with Computer Sciences Corporation (NYSE: CSC) to purchase its DynCorp International LLC ("DynCorp International" or the "Company") subsidiary for $850 million. The acquisition is expected to be completed in the first quarter of 2005.
DynCorp International is a global services company that provides mission critical support to its customers, primarily the U.S. government, including the Department of State (DOS) and Department of Defense (DoD). The company is based in Fort Worth, TX, has 14,000 employees worldwide, currently operates in over 40 countries, and had revenues for the 12 months ended October 1, 2004 of $1.6 billion.
Robert B. McKeon, founder and president of Veritas Capital, stated: "DynCorp International is a leading worldwide government services company with a global infrastructure positioned to capitalize on the fast growing government and international outsourcing trend. We see a great opportunity to capitalize on DynCorp International's superior services, infrastructure and management expertise to address emerging opportunities, including the homeland defense market."
"We're excited to be joining forces with DynCorp International CEO, Stephen Cannon, and his management team, expanding the company's existing market position around the world. Through our previous investments we have a deep appreciation for DynCorp International and its capabilities. Our goal is to continue to grow the company through new program wins as well as acquisitions. As a service company, DynCorp International's most important asset is its people. We will continue to recruit, retain, and train our workforce to maintain the highest level of integrity," said McKeon.
Currently DynCorp International provides services through two operating divisions: Field Training Services (FTS) and International Technical Services (ITS). FTS provides aviation services and engineering and logistical support, ranging from fleet maintenance to modifications and overhauls on weapons systems, aircraft and support equipment to the DoD. The division's Contract Field Teams (CFT) deploy personnel teams to customers to supplement a customer's workforce. FTS also provides domestic aviation services to owners and operators of large aircraft fleets, including Andrews Air Force Base, Fort Hood, and Fort Columbus in the U.S.
DynCorp International's ITS division provides logistical and security services, including international law enforcement training, logistics, base operations and personal and physical security. In February 2004, the company was awarded the Civilian Police, or CIVPOL, contract by the DOS to deploy civilian police forces from over 50 countries to nations throughout the world to train and offer logistical support to local police and to assist in reconstruction and infrastructure building.
Stephen J. Cannon, CEO of DynCorp International, said, "By partnering with Veritas Capital we believe we are well positioned to capitalize on the company's core strengths and leverage them in new markets. Veritas Capital has an excellent track-record of creating value."
About Veritas Capital
Veritas Capital is a private equity investment firm headquartered in New York. Founded in 1992 by Robert B. McKeon, Veritas invests primarily in defense and aerospace related companies. For more information, please visit www.veritascapital.com.