Capital has sold military and security products maker
Hunter Defence Technologies to a private equity (PE) group
led by Metalmark Capital.
deal, closed on 22 August, is valued at $335 million.
While Metalmark, a New York buyout shop, is acquiring
a controlling stake, it was not clear who the other investors
were. Bear, Stearns & Co, and the Bank of America
provided the financing.
Defence, which is based at Solon, Ohio, makes mobile housing
products, environmental control and power equipment, as
well as nuclear, biological and chemical protection systems,
mainly to the military.
Capital, which has offices in New York and San Francisco,
acquired Hunter Defence in late 2003 for $90 million.
It invested $50 million for an 80 per cent convertible
preferred stake. In March 2005, Hunter bought Base-X,
which sells tents and shelters for medical, chemical and
decontamination purposes, for $80 million. At the same
time, it undertook a $110 million recapitalisation of
Later that same year, Hunter bought specialty power generation
equipment maker PowerSystems International, which also
makes environmental controls, in a deal valued at roughly
$40 million. This means Behrman has generated a return
on its investment in Hunter of more than 2.5 times and
an internal rate of return of 31 per cent.
Capital is an independent private equity firm with a long
track record of successful investing in a wide range of
industries, especially healthcare, financial services,
energy and natural resources.
firm was founded to manage the Metalmark Capital private
equity funds and the Morgan Stanley Capital Partners private
equity funds, on a subadvisory basis.