Cerberus Capital wraps up DynCorp acquisition

Company becomes wholly owned subsidiary of New York investment group

Cerberus Capital Management LP has completed its acquisition of DynCorp International Inc., the government contractor announced today.

As a result of the merger, DynCorp International becomes a wholly owned subsidiary of Cerberus and its common stock will no longer be listed for trading on the New York Stock Exchange, effective at the close of business July 7.

Pursuant to the terms of the merger agreement, DynCorp International’s stockholders are entitled to receive $17.55 in cash, without interest, less any applicable withholding taxes, for each share of DynCorp International Class A common stock they own.

The merger, which was first announced in April, is expected to cost Cerberus $1.5 billion.

Stockholders of record will receive a letter of transmittal and instructions on how to surrender their shares of DynCorp International common stock in exchange for the merger consideration.

“With this announcement, DynCorp International enters an exciting new chapter,” said Bill Ballhaus, DynCorp International’s president and CEO, in the announcement.

“Built on six decades of trusted performance for the U.S. government, this solid foundation will only be strengthened by the operational and financial expertise that Cerberus brings,” he said.

Announcing the planned acquisition, Ballhaus said the move would allow the company to continue to achieve its growth objectives.

DynCorp has more than 14,000 employees in the Middle East — and growing quickly — to assist the State Department in police training and counternarcotics operations, provide translators to the Army, and support logistics and base camps, among other services, Bill Loomis, managing director at Stifel Nicolaus, noted in his Washington Technology column.

DynCorp International, of Falls Church, Va., ranks No. 23 on Washington Technology’s 2010 Top 100 list of the largest federal government prime contractors.

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.

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