Lockheed Martin to sell PAE unit to PE firm Lindsay Goldberg
23 Feb 2011
Lockheed Martin Corp, the world's biggest defence contractor today said that it will sell its Pacific Architects and Engineers (PAE) business to private equity group Lindsay Goldberg, for an undisclosed sum.
Maryland-based Lockheed had announced on 2 June 2010 that it plans to divest its risk and resource management business Enterprise Integration Group (EIG) and PAE since the US Government had raised concerns about perceived organisational conflicts of interest between EIG's military and intelligence consulting work and Lockheed, which is a supplier of defense equipments.
In October 2010, Lockheed sold Pennsylvania-based EIG to Veritas Capital Inc for $815 million in cash. (See: Lockheed Martin to sell resource management unit to Veritas Capital for $815 mln)
PAE, which was acquired by Lockheed in 2006 for around $700 million offers operations and maintenance, and facilities / logistics support services to the US government, the United Nations, foreign governments, and commercial enterprises, as well as maintains the US government facilities and operation of the country's military bases.
Los Angles-based PAE also deals in mission readiness, peacekeeping, global infrastructure support and disaster relief activities as well as providing services to embassies.
"Our decision to divest PAE followed a comprehensive review of our portfolio to find ways to continuously provide the best, most affordable solutions for our customers, a secure future for our employees and value for our shareholders," said Lockheed Martin chairman & CEO Robert Stevens.
Lockheed expects the transaction to close in the second quarter of 2011.
Headquartered in Bethesda, Maryland, Lockheed Martin, with 2010 revenue of $45.8 billion, is a global security company that employs about 132,000 people worldwide and is engaged in the research, design, development, manufacture and integration of advanced technology systems, products and services.