Will Become Minority Investor Through New Fund
Sixth Investment For Behrman Capital’s $518 Million Buyout Fund
April 15, 1999
Behrman Capital, a private investment firm focusing on emerging growth companies, today announced that it has sold its majority stake in Condor Systems, Inc., for an enterprise value of $134 million to an investor group led by Global Technology Partners, LLC, and DLJ Merchant Banking Partners II, L.P. Behrman will become a minority investor in Condor through its $518 million buyout fund Behrman Capital II L.P.
Condor Systems, a privately held defense electronics firm, is a world leader in the areas of signals intelligence, electronic support measures, and specialized electronic countermeasures systems for the electronic warfare industry.
Behrman Capital acquired its majority stake in Condor Systems in November 1996 in a leveraged recapitalization through its first buyout fund, Behrman Capital L.P. Since then, the Company has pursued an aggressive expansion strategy through the acquisition and integration of defense electronic companies in related niches. Condor is currently in the process of purchasing the ARGOSystems EW product line from Boeing.
“We are very pleased with our investment in Condor Systems, which exemplifies our leveraged buildup strategy where growth of a portfolio company is generated primarily externally,” said Darryl G. Behrman, a Managing Partner of Behrman Capital.
“Through this transaction,” Mr. Behrman said, “we are providing a liquidity event for the participants in our first buyout fund. However, by maintaining a minority stake in Condor, we will enable investors in our new buyout fund, Behrman Capital II L.P., to benefit from Condor’s continued growth. We are confident that our new partners in this investment, with their considerable defense industry experience and financial resources, will provide the support for Condor to achieve its full potential. This transaction is part of a recapitalization that will strengthen Condor’s ability to pursue its acquisition-based growth strategy.”
Global Technology Partners, LLC is a specialized group of investment professionals who have formed a strategic relationship with DLJ Merchant Banking Partners to acquire and invest in technology, defense, aerospace and related businesses worldwide. The senior partners consist of Dr. William J. Perry, former U.S. Secretary of Defense; Dr. John M Deutsh, former Director of Central Intelligence for the U.S. and former U.S. Secretary of Defense; Dr. John P. White, former U.S. Deputy Secretary of Defense; Dr. Paul G. Kiminski, former U.S. Undersecretary of Defense for Acquisition and Technology; Dr. Ashton B. Carter, former U.S. Assistant Secretary of Defense for International Security Policy; Dr. Robert J. Hermann, former Director of the National Reconnaissance Office; and Irving B. Yoskowitz, former Executive Vice President and General Councel for the United Technologies Corporation. DLJ Merchant Banking Partners is one of the largest private equity firms in the world, with committed capital of over $8 billion.
Behrman Capital invests in management buyouts of growth companies focused on the information technology, health care services and outsourced manufacturing industries, as well as special situations. The firm also provides expansion capital to emerging growth companies, principally in the high technology and health care services industries.
Based in New York City and San Francisco, Behrman Capital was founded in 1991 by Darryl G. and Grant G. Behrman. The firm currently has a combined capital base exceeding $640 million.