AE Industrial Partners (AEI) has entered into an agreement to acquire publicly-traded CDI Corp. for approximately $154 million. The agreement has been unanimously approved by the company’s Board of Directors following a review of strategic alternatives that the company announced in March 2017.
CDI (NYSE: CDI) is a provider of engineering, information technology, and staffing services to customers in multiple industries, including aerospace, chemicals, energy, industrial equipment, infrastructure, and technology, as well as municipal and state governments and the US Department of Defense. According to the most recent financial information available, the company has TTM revenues of $818 million and a negative TTM EBITDA of $8 million. CDI is headquartered in Philadelphia (www.cdicorp.com).
“After a review of strategic alternatives by our Board of Directors, we are pleased to reach this agreement with AEI, which provides our shareholders with immediate liquidity and substantial certainty of value,” said Michael Castleman, President, Interim CEO and Chief Financial Officer of CDI. “AEI has a proven track record of partnering with company management, is a strategic-minded and growth-oriented investor that has substantial experience in many of our core end markets, and has a strong understanding of the company’s capabilities and business model.”
“We are excited to partner with CDI’s leadership team and market-leading brand,” said Michael Greene, Managing Partner of AEI. “We believe that the company’s capabilities and reputation, combined with AEI’s deep operating expertise in engineering, IT solutions, and human capital management, will allow the company to expand and strengthen its relationships and its value proposition to key customers.”
AEI 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).
Houlihan Lokey is the financial advisor to CDI and Lincoln International is serving as the financial advisor to AEI.
The transaction is expected to close in the third quarter of 2017.
© 2017 Private Equity Professional | August 1, 2017
