CM Equity Gives Nod To ICF Kaiser Orphan –

ICF Kaiser finalized in June the sale of its consulting group, ICF Consulting, to CM Equity Partners, L.P.. ICF Kaiser sold 90% of the consulting group for $64 million in cash plus $6.6 million of interest-bearing notes. This makes ICF Consulting the third professional service company to be purchased by the New York-based firm. Both ICF Kaiser and ICF Consulting are headquartered in Fairfax, Va.

CM Equity Partners’ Managing Partner Peter Schulte said ICF Consulting’s seasoned management team and stable market position attracted his firm to the consulting group. Mr. Schulte would not disclose the breakdown of debt in the deal.

According to ICF Kaiser’s Chief Financial Officer Tim O’Connor, CM Equity Partners was one of many bidders for the company and was chosen because it offered the best price.

ICF Kaiser sold its consulting group because of the parent company’s liquidity constraints, according to Mr. O’Connor.

The management structure of ICF Consulting will not change, but a number of senior managers will become shareholders in the new entity. ICF Consulting provides advisory services regarding energy, the environment, information management, economic and community development and transportation. The company reported revenues of $105 million in 1998 and employs more than 700 people.

According to Mr. Schulte, CM Equity Partners plans to grow ICF Consulting by adding or acquiring practices that are complimentary to the group.