PHILADELPHIA--(BUSINESS WIRE)--Versa Capital Management, LLC (Versa) announced today that portfolio company and defense contractor Allen-Vanguard has sold two of its operating units to Safariland Group (Safariland), a global provider of law enforcement and security products. Allen-Vanguard, acquired by affiliates of Versa in December 2009, is a global leader in providing customized solutions for defeating terrorist and extremist threats. Purchase terms for the all-cash divestiture were not disclosed. The sale retired 100% of Allen-Vanguard’s outstanding bank debt and funded significant payments to Versa affiliates.
The sale included Allen-Vanguard’s “Med-Eng” bomb disposal suit and related equipment units (EOD), and its Crew Survivability group (CS), which provides products for blast attenuation and thermal management. Allen-Vanguard will focus on its two retained strategic high-growth businesses: Electronic Systems and Countermeasures (ES/ECM) and Counter-Threat Solutions (CTS), both of which will continue to operate under the Allen-Vanguard name.
Allen-Vanguard’s ES business is a world leader in sophisticated jamming and electronic sensing solutions that protect soldiers, law enforcement personnel and dignitaries. The company’s CTS business provides specialized intelligence services, tools and training in the fight against extremist network operations. Both areas feature prominently in the evolving defense and security landscape globally.
"We are pleased that Allen-Vanguard has completed this successful sale, enabling the company to deleverage and generate an attractive distribution for our fund investors while advancing Allen-Vanguard’s strategy to deleverage and focus on its remaining high-growth business units,” stated Gregory L. Segall, CEO of Allen-Vanguard controlling shareholder Versa Capital.
“In the past few years, and in the face of dramatic changes in the U.S. and global defense landscape, much has been accomplished in repositioning Allen-Vanguard from the inside out,” Segall noted. “As part of the company’s strategic review of its portfolio of businesses, it was determined that the mature EOD and CS businesses would be attractive to the marketplace, resulting in today’s successful divestiture.
“Going forward, Allen-Vanguard will pursue its mission of providing high value-add solutions in support of global counter-terrorism efforts through its ES/ECM and CTS business units.”
Versa Capital and Allen-Vanguard were represented by Houlihan Lokey as financial advisor, while Dechert LLP served as lead counsel in the transaction.
About Versa Capital Management, LLC
Based in Philadelphia, PA, Versa Capital is a private equity investment firm with over $1.3 billion of assets under management focused on control investments in special situations involving middle market companies where value and performance growth can be achieved through enhanced operational and financial management. More information can be found at www.Versa.com.
About Allen-Vanguard
Based in Arlington, VA, and with key facilities in Canada and the United Kingdom, Allen-Vanguard is a global technology leader in providing customized solutions and services to military and civilian agencies in more than 100 countries for defeating terrorist and extremist threats. Additional information is available online at www.AllenVanguard.com.
