About

Defense Ventures is about the business of the defense industry. Corporate strategy, M&A, VC, PE, technology, and the stories & people shaping the defense, government services, homeland security, and aerospace markets.

Search
Powered by Squarespace
Login
ISSUE LIST: WE WANT YOUR OPINION
Tags, Archive
The FULL Defense Technologies Report Series
« FedCap Update | Main | Veritas and DC Capital content on new Defense Ventures Wiki »
Wednesday
Jul062011

DC Capital to Add Sallyport through Kaseman

DC Capital has announed that through its portfolio company Kaseman, it will purchase Sallyport Global Holdings. From the press release:

"Kaseman, which operates in three primary areas: (i) engineering and professional services, (ii) specialized construction, and (iii) training, will combine its capabilities with Sallyport. Sallyport provides engineering and professional services, which includes fire protection, environmental remediation, power generation, and other support services such as base construction, base operations, and logistics. The combination of the two companies will significantly expand their market position internationally."

While this particular acquisition may offer a good fit for Kaseman, overall it's hardly a very differentiated strategy in the increasingly crowded Defense Logistics & Services sector. This will get them to the same table as ITT, KBR, Fluor, PAE, URS, DI, AECOM, IAP... and a sea of experienced foreign first-tier subs. Similar to the difficulty had by Cerberus (with IAP, now DynCorp) and Lockheed (with PAE), this is going to be a tall challenge to build the "all-encompassing solution" that Kaseman CEO Tony Grimes envisions in the press release. I wonder if there is a more innovative strategy. Sallyport has been very successful as a specialist, actually.

 

PrintView Printer Friendly Version

EmailEmail Article to Friend