Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

Cerberus to take defense contractor DynCorp private in $1 billion deal

From The Associated Press, April 12, 2010 – 10:43 AM

FALLS CHURCH, Va. (AP) – DynCorp International, which has helped train the national police in Afghanistan, said Monday that it is being bought out by private equity firm Cerberus Capital Management for $1 billion.

A recent decision to shift control of the training program from the State Department to the military may end a contract that DynCorp has held since 2003.

The company is challenging the decision.

DynCorp shareholders will receive $17.55 in cash for each share, a premium of 49 percent from Friday’s closing price of $11.75. The deal also includes debt that pushes its total value to $1.5 billion.

Under the terms of the deal announced Monday, DynCorp has 28 days to solicit proposals from other companies.

Shares of DynCorp International Inc. soared $5.72, or 49 percent, to $17.47.

DynCorp provides services such as aviation support in Iraq to helping flood victims in the U.S. It has contracts in Kuwait and Afghanistan.

Two possible drug-related deaths in Afghanistan by two contractors has raised concerns about how well the company selects and manages employees assigned to a police training contract that is considered key as the U.S. looks to hand over more of the security burden to the Afghans.

April 12, 2010 - Posted by | Civilian Contractors, Civilian Police, DynCorp, Private Security Contractor, State Department, Wartime Contracting | , , , , , ,

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: