Alvarez & Marsal Capital has agreed to sell Centerra Group LLC to Constellis, which is backed by Apollo Global Management. No financial terms were disclosed. The deal is expected to close in the second quarter of this year. Credit Suisse, Barclays, Citi and Goldman Sachs provided financing for the transaction. Based in Palm Beach Gardens, Florida, Centerra is a government and critical infrastructure services company.
RESTON, Va. & PALM BEACH GARDENS, Fla., March 13, 2017 /PRNewswire/ — Constellis, a leading provider of operational support and risk management services, announced today that it has entered into a definitive agreement to acquire Centerra Group, LLC (“Centerra”) and its subsidiaries from an affiliate of Alvarez & Marsal Capital. The acquisition of Centerra, a leading global government and critical infrastructure services company, will significantly enhance Constellis’ U.S. domestic presence and strengthen its relationships with key customers, including the U.S. Department of Energy and the United Nations.
The transaction is conditioned on customary regulatory reviews and approvals, and is expected to close within the second quarter of 2017. Terms of the deal were not disclosed.
The transaction brings together the industry’s two premier safety and risk management providers serving a broad range of customers, including U.S. government agencies (notably the U.S. Department of State, the U.S. Department of Defense, and the U.S. Department of Energy), foreign governments, NGOs and a diverse mix of blue-chip commercial entities. The transaction furthers Constellis’ ongoing strategy of expanding its domestic presence serving well-funded customers with enduring requirements. Constellis will be able to leverage the combined entity’s scale, vertical integration, training facilities, shared best practices and financial resources to strengthen its best-in-class risk mitigation service offering, utilizing the industry’s most revered compliance programs.
Headquartered in Palm Beach Gardens, Florida, Centerra has approximately 9,000 employees operating across the U.S., Africa, the Middle East and other international locations. Centerra has an established track record of more than five decades operating domestically for the U.S. Department of Energy and currently provides operational support and risk management services at 15 U.S. Department of Energy sites across the U.S. In addition, Centerra provides security, fire suppression and base operations support to other U.S. Government customers, as well as humanitarian-focused services and training, such as munitions clearance and related consulting services, to the United Nations and foreign governments abroad.
“The acquisition of Centerra represents a critical step in our continued evolution as an essential service provider, enabling enduring missions for our customers,” said Jason DeYonker, Chief Executive Officer of Constellis. “Centerra greatly enhances our domestic footprint and accelerates our ongoing efforts to further penetrate the U.S. risk management market with such highly regarded customers as the U.S. Department of Energy. Centerra’s well respected brand, exceptional performance and strong leadership bring tremendous value to our combined offering.”
Paul Donahue, President and Chief Executive Officer of Centerra, commented: “We are excited by the combination of Centerra and Constellis, yielding the leading global provider of the most creative, compliant and comprehensive risk management services in the world. Constellis’ award winning compliance programs, exceptional training capabilities and commitment to invest in operational best practices will add value at less overall cost to our customers and partners.”
Constellis has secured financing commitments from Credit Suisse, Barclays, Citi and Goldman Sachs to fund the acquisition of Centerra and to refinance the combined company’s existing debt.
Akin Gump Strauss Hauer & Feld LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are serving as legal advisors to affiliates of Apollo Global Management (together with its subsidiaries “Apollo”) and Constellis.