May 11, 2017 -
Private-equity firm Graduate Cos. is teaming up with former U.S executives of defense contractor Supreme Group BV to launch Valiant Integrated Services LLC.
The management team and the private-equity firm acquired certain assets of Supreme Group’s defense – and government- services business for an undisclosed sum and formed Valiant. Company management and founders of Supreme Group won’t have a stake in the new venture, which will be based in Tysons Corner, VA.
With Graduate Cos.’s backing, Valiant Integrated Services will focus on capturing expansion opportunities in the defense-contracting market, said Mac LaFollette, founder of New York firm.
“If you think about what we do, we’re effectively providing food to troops overseas. I think that over time, there will be a lot of adjacencies to what we do”- Mr. LaFollette said.
Supreme Group, which is based in the Netherlands but has its main operating in Dubai, provides fuel, food, transportation and storage supplies to defense, government and commercial clients.
Following a penalty it paid in 2014 for fraud charges after admitting to overcharging the Pentagon for food and bottled water, the owners of Supreme Group decided the following year to divest their interest in the defense and government services division, said Jim Jaska, former president of Supreme Group’s U.S. business and Valiant’s co-founder and chief executive.
The company initially looked at selling the entire defense and government service business, but ultimately decided to unload assets primarily tied to the U.S., the U.K and few other European governments, said Mr. Jaska, who joined Supreme Group in 2015to lead the U.S. division.
“Mac [LaFollette] and I laid out a plan for investors in Valiant that is a platform for growth,” Mr. Jaska said. “There is a growing trend towards further use of contractors and contracting entities.”
Valiant will focus on pursuing organic growth and evaluating potential tuck-in acquisition opportunities when they make sense, Mr. Jaska added.
Graduate Cos., also known as GC Cos., consists of a broad group of investors, including endowments, foundations, large family offices, fund of funds and state pension funds that support a deal-by-deal model.
Elsewhere in the defense contracting services sector, New Mountain Capital sold government services provider Camber Corp. to Huntington Ingalls Industries for $380 million in December. Arlington Capital Partners acquired EOIR Technologies Inc., a provider of technological and engineering services for the U.S. intelligence community, for an undisclosed sum in June 2016.
Write to Jaewon Kang at jaewon.kang@dowjones.com
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