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Berkshire Partners Recaps Engineering Solutions & Products

Boston-based buyout shop Berkshire Partners has recapitalized government service provider Engineering Solutions & Products. Terms of the deal were not released. Eatontown, NJ-based Engineering Solutions provides acquisition, logistics and technology support services to the U.S. Department of Defense. The Chertoff Group and Avascent Group served as strategic advisors to Berkshire.

PRESS RELEASE:
Berkshire Partners LLC, the Boston-based private equity firm, today announced it has partnered with the management of Engineering Solutions & Products LLC (ESP), a leading government services provider, to recapitalize the company. Terms of the transactions were not disclosed.

Headquartered in Eatontown, New Jersey, ESP is a premier provider of acquisition, logistics and technology support services to the U.S. Department of Defense, particularly in the Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) area. Founded in 2000, the company has enjoyed steady growth and strong financial performance driven by high success rates on bids for new opportunities and recompetes. ESP employs over 1,200 engineers, technicians and consultants with experience in IT services, military acquisition, logistics and program management; nearly all ESP employees have security clearances.

ESP’s founder James E. Hoffman, Jr. will retain a significant ownership position in the company and will remain Chief Executive Officer.

Berkshire Managing Director Lawrence S. Hamelsky commented, “We are impressed by ESP’s exceptional track record of performance, deep customer relationships and strong culture. ESP is well-positioned to continue providing critical services to the C4ISR community while expanding its service offering and customer base. Berkshire is proud to partner with and support Jim and his team in this exciting chapter of growth.”

ESP Founder and Chief Executive Officer James E. Hoffman, Jr. said, “Berkshire’s history of working with founder-led management teams and cultural fit with ESP make it the ideal partner to help take ESP to its full potential.”

Berkshire Partners has a successful track record of investing in services companies and companies with an exposure to government customers. Prior transactions include TransDigm, a designer, producer and supplier of commercial and military aircraft components; AmSafe, a leading manufacturer of safety and securement equipment for the aviation, military and specialty vehicle markets; and Bartlett Nuclear, a provider of radiation protection support personnel and decontamination services to the Department of Energy and broader U.S. nuclear industry.

The Chertoff Group and the Avascent Group served as strategic advisors to Berkshire in support of this transaction.

About Engineering Solutions & Products LLC

Engineering Solutions & Products (ESP) is a leading provider of acquisition, logistics and technology support services to the U.S. Department of Defense. ESP specializes in supporting U.S. Army Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) requirements in both a prime contractor and subcontractor capacity. Founded in 2000 and based in Eatontown, New Jersey, ESP has enjoyed steady growth and strong financial performance driven by high success rates on bids for new opportunities and on recompetes. All bids have been submitted on a full and open competitive basis. In excess of 50% of ESP’s work is performed in a prime contractor capacity. With its long track record of performance and deep customer relationships, the company is well-positioned to continue to successfully compete for additional C4ISR business and to market its capabilities to other government customers. For additional information, visit www.espcorp.org.

About Berkshire Partners LLC

Berkshire Partners, the Boston-based private equity firm, has invested in leading mid-sized companies for over twenty-five years through seven investment funds with aggregate capital of $6.5 billion. Berkshire has developed specific industry experience in several areas including retailing, consumer products, manufacturing, transportation, energy, business services and communications. Representative investments include Amscan/Party City, Bare Escentuals, Carter’s, Crown Castle International, NEW Asurion and TransDigm. Since the mid-1980s, Berkshire has invested in over 100 companies with more than $20 billion of acquisition value and combined revenues in excess of $22 billion. Berkshire seeks to invest $50 million to $500 million of equity capital in each portfolio company. For additional information, visit www.berkshirepartners.com.