ITT wraps up sale of systems engineering unit to Wyle
CAS Inc. purchased for $235 million
- By David Hubler
- Sep 09, 2010
ITT Corp. has completed the sale of its systems engineering and technical assistance services business, CAS Inc., to Wyle for $235 million.
CAS, of Huntsville, Ala., employs more than 1,100 people and provides systems engineering and technical assistance for a wide range of military applications, principally to the Defense Department and similar or related agencies, an ITT statement released today said.
“As ITT continues our portfolio alignment strategy, this divestiture will also allow us to focus on growth in other parts of our business,” Dave Melcher, ITT senior vice president and president of its Defense and Information Solutions business, said in the announcement.
In August, Wyle said the acquisition would become a strategic business unit of the company and that 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.
Earlier this year, ITT reorganized its $6.3 billion defense business by consolidating seven product-oriented business units into three integrated units to focus on electronic systems, geospatial systems and information systems.
ITT, of White Plains, N.Y., ranks No. 14 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors. Wyle, of El Segundo, Calif., ranks No. 45.
David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.