Wyle's purchase of CAS will expand DOD customer base

California contractor expands presence in Army's Huntsville, Ala., community

Wyle Inc. has entered into a definitive agreement to acquire CAS Inc., a division of ITT Corp., creating a combined entity that will have pro forma 2009 revenues of approximately $1 billion.

CAS, of Huntsville, Ala., provides systems engineering and technical assistance services, primarily to the Defense Department.

The acquisition will become a strategic business unit in Wyle’s organization, Wyle said in a statement today.

Wyle said it intends to finance the acquisition with cash on hand, approximately $20 million of equity from its controlling shareholder, Court Square Capital Partners and affiliates, and approximately $200 million of incremental debt.

Wyle has obtained committed financing from Barclays Capital and JP Morgan Chase in an amount sufficient to fund the acquisition and to refinance the existing Credit Facilities, if required.

CAS, founded in 1979, has deep ties to the Huntsville Army community with long-term customer relationships and an impressive track record of growth, the statement said.

“With the addition of CAS, Wyle will significantly diversify its customer base. The Navy and the Army will now be our largest customers. Additionally, while we have an existing presence in Huntsville, this acquisition will enhance our presence with key customers in this strategic market,” George Melton, Wyle's chairman, CEO and president, said in the statement.

Wyle, of El Segundo, Calif., ranks No. 45 on Washington Technology’s 2010 Top 100 list of the largest federal contractors. ITT, of White Plains, N.Y., ranks No. 14 on the list.

About the Author

David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close
SEARCH
 Top 100 Slideshow
contracts DB

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Read More

  • Is SBA MIA on contractor fraud? Nick Wakeman

    Editor Nick Wakeman explores the puzzle of why SBA has been so silent on the latest contractor fraud scandal when it has been so quick to act in other cases. Read More

Webcasts