Belcan, a portfolio company of AE Industrial Partners (AEI), has agreed to Schafer Corporation from Metalmark Capital Partners. The transaction is expected to close in the second quarter of 2017. Belcan was acquired by AEI in July 2015 and Schafer has been a portfolio company of Metalmark since December 2008.

Schafer is a provider of scientific, engineering, and technical services and products to the military and intelligence community; Department of Homeland Security; NASA; and companies operating in the private sector. The company’s government services include technology development; analysis and planning; information technology management; intelligence and cyber security; laboratory and scientific support; operational support; and communications. Its aerospace services include space superiority; directed energy; counter-space analysis; missile defense; and test and evaluation. Schafer has more than 400 employees and was founded in 1972. The company is headquartered in Arlington, VA (www.schafercorp.com).

“Belcan is building an unrivaled array of engineering and IT capabilities, and Schafer is the latest acquisition to support this global initiative,” said Belcan CEO Lance Kwasniewski. “Schafer represents a tremendous addition to our Government Services business, which helps governments and institutions worldwide support mission-critical tasks.”

Belcan is a provider of engineering services and technical staffing to the aerospace, industrial and government sectors. The company has more than 6,000 employees in 49 locations, including 26 engineering design centers and 23 TechServices locations. Belcan is headquartered in Cincinnati (www.belcancorporation.com).

The buy of Schafer is the second add-on acquisition for Belcan in 2017. In January the company acquired The Kemtah Group, an Albuquerque-based provider of outsourced IT services (www.kemtah.com). “With five acquisitions in less than 18 months, Belcan has demonstrated an unrelenting commitment to expanding its capabilities and footprint,” said David Rowe, Managing Partner of AEI. “We are proud to have helped Belcan grow to become an undisputed leader in the markets it serves.”

AE Industrial Partners invests in the aerospace, power generation and specialty industrial sectors with a specific focus on technical manufacturing, distribution and supply chain management, MRO (maintenance, repair and overhaul) and industrial service-based businesses.  Typical company targets will have from $50 million to $500 million of revenue. The firm is headquartered in Boca Raton (www.aeroequity.com).

Metalmark Capital, the seller of Schafer, was established by the principals of Morgan Stanley Capital Partners (MSCP) to manage the Metalmark Capital and MSCP funds. Since 1986, the Metalmark Capital and MSCP funds have invested $7 billion of equity capital in over 100 companies. Sectors of interest include healthcare, natural resources, agribusiness, and growth industrials. Metalmark is based in New York (www.metalmarkcapital.com).

PricewaterhouseCoopers was the financial advisor to Belcan and AEI. Raymond James & Associates was the financial advisor to Schafer and Metalmark Capital.

© 2017 Private Equity Professional | April 18, 2017

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