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Eagle Support Services, an Alabama-based logistics provider to the US military, has retained the Windsor Group to sell the company, an industry banker told mergermarket. Eagle, headquartered in Huntsville, did not return calls for comment. The Windsor Group declined to comment on the matter.
According to a source familiar with the company, Eagle Support has been rumored to be for sale for some time. The banker said it was the second or third time the business had been shopped. According to the source, Eagle’s founder, retired general Joseph William ’Buck’ Camp, sold the company several years ago to its current management. The company was founded in 1996. In 2005, it sold its German subsidiary, Eagle-D, to MTC Technologies.
An industry executive said that, although sales of logistics companies selling to the federal government have declined, they were still selling in the 10x - 11x EBITDA range. A second industry source said public companies comparable to Eagle sell in the 10x - 12x EBITDA range. The source went on to cite Stanley and Mantech as recent acquirers in the space. Mantech bought McDonald Bradley, a USD 50m federal contractor, for USD 76.5m last month. Stanley and Eagle are partners on Stanley’s USD 267m contract with the US Army to operate the Army’s Field Logistics Readiness Center and Bluegrass Army Maintenance Activity in Kentucky.
A source at Reston, Virginia-based SI International said that while he was not familiar with Eagle, based on the areas it is involved in it could be a fit for SI, particularly since Eagle’s contracts are directly with the federal government rather than other small contractors. The listed government IT provider is involved with equipment maintenance and modification, the source noted. He also said Huntsville is a hot area for M&A right now.
A source at Arlington, Virginia-based Stanley said Eagle could be a good fit with it as well, since Eagle does actual hands-on work to repair army equipment. He noted that while Stanley is not a major player in repairing equipment, it is an area in which it could look to make acquisitions in order to get more of a presence. The source declined to say whether Stanley and Eagle have discussed a merger.
According to a recent profile, Eagle has revenues of around USD 70m.
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