| | Booz Allen Hamilton is to
separate its US
government and global
commercial businesses,
selling a majority stake
in the US government
business to The Carlyle
Group for $2.54bn.
The company said the
strategic realignment
will enable Booz Allen's
two businesses to refocus
on their distinct end
markets. At the same time
as Carlyle's investment,
Booz Allen's commercial
business will form a
stand-alone company,
which will be owned and
operated by the
commercial officers. The
transaction is expected
to close in mid-late
2008, subject to
shareholder and
regulatory approvals and
other customary closing
conditions.
Booz Allen provides
management consulting,
engineering, information
technology, and systems
development and
integration services | |
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| | supporting
mission-critical
programmes for the US
government. Headquartered
in McLean, Virginia, Booz
Allen's US government
business has more than
18,000 employees in 80
offices worldwide,
generating annual net
revenues in excess of
$2.7bn.
Carlyle, based in the
District, has $81.1bn
under management and is
one of the largest
private-equity firms in
the world.
"This separation of
our core businesses marks
a dynamic new chapter in
our history," stated Dr
Ralph W. Shrader,
chairman & chief
executive officer of Booz
Allen Hamilton. "For 94
years, Booz Allen has
adapted and evolved as
market realities have
changed and our areas of
expertise have grown. We
continually evaluate
whether we have in place
the best strategy and | |
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| | structure to succeed and
deliver the highest
quality service to our
government and commercial
clients, which is our top
priority."
Upon completion of the
strategic realignment,
Booz Allen, led by
Shrader, will focus on
serving its US government
clients. "Booz Allen is
proud of the important
work we do to help
government clients meet
their critical missions
in national defence,
health care,
telecommunications, and
other vital areas. We
bring specialised
expertise to solve tough
problems, and have a
track record of
delivering results that
are practical, effective,
and of significant
value," said Shrader.
Peter Clare, Carlyle
managing director and
head of the Global
Aerospace, Defence and
Government Services
sector team, said: "The | |
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| | partners of Booz Allen
have built a world-class
business and brand
focused on providing
critical services to
government clients. We
are excited about
partnering with the firm
and supporting the
continued growth of the
business and will
maintain the unique
culture that has made
Booz Allen so
successful."
Ian Fujiyama, the
Carlyle managing director
who led the transaction,
added: "Booz Allen
provides its clients with
an unparalleled breadth
of domain expertise and
technical capabilities.
With a strong, diverse
portfolio of customer
relationships, we believe
that Booz Allen is well
positioned to continue
its market leadership."
Through the
realignment, the
commercial and
international business
will become an | |
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| | independent company
focused on global
management consulting.
"Booz Allen is already
a clear leader in the
management consulting
industry, with a powerful
reputation, enviable
client base, strong
financial position, and
unwavering commitment to
serving the senior agenda
of the world's leading
institutions. As a
stand-alone company, the
new commercial and
international business
will have greater agility
to meet the needs of its
client base, maximize its
potential, and realize
significant growth across
the globe," said Shrader.
The realignment has
been unanimously
recommended by Booz
Allen's Board of
Directors.
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