NEW YORK, NY — August 22, 2007— Behrman Capital, a private equity investment firm based in New York and San Francisco, and Metalmark Capital, a New York-based private equity firm, announced today that Metalmark Capital has completed the acquisition of Hunter Defense Technologies, Inc., a manufacturer of military and homeland defense products, from Behrman Capital in a transaction valued at $335 million.
Headquartered in Solon, Ohio, Hunter is a leading supplier of mobile military and emergency response solutions including rapidly deployable shelters, highly engineered environmental control and power equipment, and nuclear, biological and chemical protection systems.
“Since our acquisition of Hunter in 2003, the business has realized substantial organic growth as well as growth through acquisitions,” said Grant G. Behrman, Managing Partner of Behrman Capital. “Our strategy was to leverage this growth to transform the company from a niche product manufacturer into a leading provider of mobile military systems. The Hunter team has firmly established the company as a valued partner for its customers, providing innovation, technical advancement and the highest quality in its product areas.” Behrman Capital generated a return on its investment in Hunter of over 2.5x and an IRR of 31% for its limited partners. Since May of 2005 the firm has generated gross proceeds of $1.4 billion across its three funds.
“In the space of a few years, the Hunter team has done an excellent job of managing the complexities of rapid growth,” said Howard I. Hoffen, Chairman and Chief Executive Officer of Metalmark Capital. “We are very excited to begin our partnership with Hunter and look forward to working with the company to build on its past success by enhancing current product lines and expanding into adjacent areas.”
Behrman Capital acquired Hunter in December 2003 in a transaction valued at approximately $90 million. In March of 2005, Hunter expanded its product offering with 2 the acquisition of Base-X, Inc., a leading manufacturer of rapidly deployable tactical shelters for military, medical, and homeland defense uses, in an $80 million transaction. In October of 2005, Hunter acquired PowerSystems International, a developer of power generation systems, and environmental control units for military applications.
Vince Nardy, Chief Executive Officer of Hunter, said, “In 2004, we committed to grow Hunter’s business, leveraging our strong intellectual property base and advanced technology to provide comprehensive product offerings for the benefit of our customers. We have made substantial strides over the last few years, and we look forward to beginning a new phase of growth in partnership with Metalmark.”
Bear Stearns acted as financial advisor to Behrman Capital in connection with the transaction. Goodwin Procter LLP provided legal counsel to Behrman Capital. Houlihan Lokey acted as financial advisor to Metalmark Capital in connection with the transaction. Kirkland & Ellis LLP provided legal counsel to Metalmark Capital.
About Metalmark Capital
Metalmark Capital is an independent private equity firm whose principals have a long track record of successful investing in a wide range of industries, including their core areas of expertise – industrials, healthcare, financial services, energy and other natural resources. The firm was founded to manage the Metalmark Capital private equity funds and the Morgan Stanley Capital Partners private equity funds, on a subadvisory basis. For more information, please visit www.metalmarkcapital.com.
About Behrman Capital
Based in New York City and San Francisco, Behrman Capital was founded in 1991 by Grant G. and Darryl G. Behrman. The firm invests in management buyouts, leveraged buildups and recapitalizations of established growth businesses. The company’s investments are primarily focused in five industries: defense, specialty manufacturing, health care, outsourcing and information technology. The firm currently has a combined capital base in excess of $1.8 billion. For more information, please visit www.behrmancap.com.
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For Behrman Capital:
David Lilly or Michael Freitag
Kekst and Company