Industry Week in Review – January 13, 2012
This week, Defense Secretary Leon Panetta announced that the U.S. will withdraw two combat brigades from Europe. In a press release from the Department of Defense, Panetta declared two permanently stationed Army combat brigades will be replaced with rotational units in order to retain a strong presence in the region. Currently, 40 thousand troops and over 100 thousand dependents are stationed in Europe. The adaptation to rotational units is a cost saving plan with the overall goal of meeting the new 10-year defense strategy announced last week.
President Obama unveiled a plan to consolidate six government agencies into one, effectively eliminating the Commerce Department and saving up to $3 billion in the next decade. The six departments and agencies – Commerce’s core business and trade functions, the Small Business Administration, the Office of the U.S. Trade Representative, the Export-Import Bank, the Overseas Private Investment Corporation, and the U.S. Trade and Development Agency – would cut up to 2,000 jobs through attrition and consolidate into one department with the mission of job creation and economy expansion.
Textron (Up 10.8%) – Shares are up this week after Reuters reported the aircraft maker was considering options including spinning off pieces of its business.
KBR, Inc. (Up 10.7%) – Shares are up this week after the company settled a lawsuit brought by an injured convoy driver who claimed the company sent civilians into a battle zone in Iraq in 2004 knowing they would be attacked and possibly killed, according to a court filing. Reginald Cecil Lane, the driver, reached a “confidential settlement” with KBR and its former parent, Halliburton Co. Lane and the defendants asked the court to dismiss the lawsuit, according to the filing.
ManTech International Corp. acquired Evolvent Technologies, Inc., a provider of healthcare information technology services to the federal government. The acquisition will enable ManTech to deliver information technology solutions through Evolvent’s existing relationships with DoD Health organizations, the Veterans Administration and the Department of Health and Human Services. Terms of the deal were not disclosed.
BE Aerospace Inc. to acquire UFC Aerospace Corp., a provider of aerospace logistics and supply chain management services for $400 million. The acquisition expands BE’s capability to offer supply chain solutions, value-added inventory logistics services and customized kitting solutions, as well as further expanding its consumables product offering.
Gridiron Capital, LLC acquired Nex-Tech Aerospace, a manufacturer of components, structures, and assemblies for fixed wing and rotary aircraft for the aerospace industry globally. The acquisition will allow both companies to better serve a diversified customer base through additional resources, increased high-speed machining capacity and an enhanced product and service offering. Terms of the deal were not disclosed.
ASI Government acquired Frontline Solutions Corporation, a provider of Systems Engineering and Technical Assistance (SETA) and mission support services to the Intelligence Community and Department of Defense. The acquisition will allow ASI to fortify its acquisition, program management, and strategy and organizational performance capabilities, while adding additional expertise to address the unique needs of the Intelligence Community. Terms of the deal were not disclosed.
RTI International Metals to acquire Remmele Engineering, a global supplier of advanced titanium mill products and fabricated components for $182.5 million. The acquisition is expected to provide entrance to new contract manufacturing end markets, such as the fast-growing medical device market.