Lockheed filing offers no further details on PAE sale

Lockheed Martin's 10Q filed yesterday failed to inform us any further about the terms of the PAE sale. They reported a loss of $18M from discontinued operations, but this is lumped with the EIG sale as well, and not much else but the following note in terms of details:

Earnings (Loss) from Discontinued Operations

Discontinued operations included the operating results for Pacific Architects and Engineers, Inc. (PAE) for all periods presented and those of Enterprise Integration Group (EIG) for the first quarter of 2010. The Corporation closed on its sale of PAE in the second quarter on April 4, 2011 and that of EIG on November 22, 2010. Earnings from discontinued operations resulted in a loss of $18 million ($.05 per share) for the first quarter of 2011 compared to income of $14 million ($.03 per share) reported in the first quarter of 2010.

Has anyone dug deeper into this? 

In general, here is a more detailed overview of the LMT results from Zack's.

Lockheed completes sale of PAE

Lockheed Martin announced this week that it has completed the sale of Pacific Architects & Engineers (PAE) to private equity firm Lindsay Goldberg LLC. Unfortunately for this and other interested observers, no details of the transaction have been disclosed. Still no obvious sign or even the remotest scuttlebutt about how LG will run this investment. No star chamber additions to the LG team... no sign of defense expertise in the list of affiliated partners.

Mr. Lindsay, Mr. Goldberg: what will you do with PAE?

Lockheed Sells PAE to Lindsay Goldberg

Lockheed Martin announced last week that it would sell it's Pacific Architects and Engineers (PAE), business unit toprivate equity firm Lindsay Goldberg. Lockheed's press release says PAE was "inconsistent with the corporation’s long-term strategy" and that "Their mission... never aligned with our core competencies.” For those who know both firms, it was always difficult to imagine how Lockheed might have ever integrated a construction and infrastructure support company with such a clearly different culture, not to mention the divergent risk tolerance that enabled PAE to build a billion dollar business in Africa.

No matter, now it's with the team at LindsayGoldberg to invest and expand PAE's strong position in contingency construction, logistics, and other services. So far there isn't much info out there (comments, anyone?) to say how they plan to do that, but of course it's very early. On the LG website they have listed the same press release from Lockheed rather than expanding on it themselves, so there's no info about who is leading the deal and post-deal for them, or what their strategy may be. I also don't see any defense related deals in their published transaction history, and no sign of any specific defense experience on their management team or with advisors & affiliates. Of course, in contrast Lockheed obviously had that in spades so perhaps LG should take a fresh approach. We'll see.