Wyle's purchase of CAS will expand DOD customer base
California contractor expands presence in Army's Huntsville, Ala., community
- By David Hubler
- Aug 09, 2010
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.