CPI International launches sale process, say sources: Reuters

CPI International Holding Corp, a manufacturer of circuits used in radars and satellites, is exploring a sale that could value it at more than $1 billion, including debt, people familiar with the situation said.

CPI’s private equity owner, private equity firm Veritas Capital Management LLC, has hired investment bank Moelis & Co to run an auction for the company, the people said this week.

The sources asked not to be identified because the sale process is confidential. Representatives for CPI and Veritas did not immediately respond to requests for comment. Moelis declined to comment.

Based in Palo Alto, California, CPI makes radio frequency, microwave, power and control products for defense, communications, medical and scientific purposes.

Founded in 1948 as Varian Associates, a division of the company won an Emmy Award in 1989 for technological achievement by the Academy of Television Arts and Sciences because of a television tube it manufactured.

CPI’s adjusted earnings before net interest, income taxes, depreciation and amortization in 2014 was $89.9 million.

CPI was taken private by Veritas for $525 million in 2010. Last month, CPI bought small competitor ASC Signal Corporation based in Plano, Texas-based, from Cleveland-based private equity firm Resilience Capital Partners for $50 million.