News in Defense Private Equity

Finding it hard to keep up lately, but here is some recent news in defense-related PE activity:

Ranger Aerospace is in the news after being involved in a recent capital markets conference. From the press release, Steve Townes is quoted:

"Key leaders in the capital markets and aerospace services industry recognize the strong niche brand we have built with Ranger over the years. We are middle market operators and business-builders, specialists in positive transformations. This newest Ranger platform is developing excellent velocity for 2011 and beyond."

Xe Services (formerly Blackwater) has been acquired by USTC Holdings, fully divesting founder Erik Prince's equity stake. USTC is an investor consortium led by Forté Capital Advisors and Manhattan Partners. More from the press release here.

ExecutiveBiz's list of the Top 20 People to Watch in 2011 includes the former CEO of DynCorp, Bill Ballhaus, as well as his successor, Steve Gaffney. Ballhaus remains on the board of DynCorp and serves as strategic advisor to parent Cerberus Capital Management.

Admiralty Partners will sell Trident Space & Defense to TeleCommunication Systems (TCS). Admiralty founder Jon Kutler will join the board at TCS. More here.

Follow Up From Ranger Aerospace

Following our post about recent acquisitions by Ranger Aerospace, CEO & founder Steve Townes sent me the following note:

Many thanks for your astute commentaries about Ranger Aerospace. We now have total capital in our Boardroom group of over $800 Million "available" for deals, so we are actively looking for more acquisitions and joint ventures.

Very best wishes for the New Year!

Steve Townes

Subsequent emails with Steve indicated that Ranger is interested in extending their diversification into Government Services, targeting acquisitions that complement Aviation Services and Heavy Vehicle MRO/RESET.

Ranger International Buys US Logistics

Actually, it's a Ranger Aerospace led merger, combining Ranger Aerospace, CAV International, and US Logistics into a diversified technical services platform called Ranger International Services Group. This looks like a damn smart acquisition for Ranger, a Greenville, SC based private equity partnership specializing in aerospace and defense. Previously focused on aerospace tech services deals, Ranger had already acquired Keystone Helicopter and Aircraft Service International Group. But the US Logistics deal substantially broadens their operations, giving them US's growing business in maintenance services for wheeled tactical vehicles, including an FSR contract for the MRAP.

Clearly a favorite sector at Defense Ventures, wheeled tactical vehicles (from HMMWV to GCV) will be a growth sector worldwide as the U.S. expands its successful Stryker and MRAP fieldings and fills the gap left by killing FCS. Not to say this acquisition makes Ranger a major player there, but it does show impressive foresight to expand from one emerging sector (rotary wing maintenance & tech services) into another.