Investment helped establish Platinum’s playbook in government services sector where firm seeks new opportunities to put capital to work
LOS ANGELES (February 15, 2022) — Platinum Equity confirmed today that following the approximately $1.9 billion sale of PAE Incorporated to an affiliate of Amentum Government Services Holdings LLC that closed this morning, the firm has fully exited its investment in the government services provider that it acquired in 2016 and took public in 2020.
PAE is a global leader in delivering mission-critical smart solutions to the U.S. government and its allies on all seven continents.
“PAE was a milestone investment for Platinum that firmly established how our playbook can create value in the government services sector,” said Platinum Equity Partner Louis Samson. “We deployed the full range of our toolkit and helped the company serve as a catalyst for the ongoing consolidation taking place in that space. We know the sector well and will continue looking for new opportunities to put our capital, M&A resources and operational capabilities to work.”
After Platinum Equity acquired PAE in 2016, it worked with the management team on a multifaceted transformation program that expanded the company’s capabilities and drove a broad range of operational improvements throughout the business. PAE emphasized both organic and acquisitive growth. Add-on acquisitions of FCi Federal, Macfadden & Associates, CENTRA Technology, and Metis Solutions helped diversify its customer base, contract portfolio and geographic reach.
PAE became publicly traded in 2020 via a transaction with a special purpose acquisition company, after which certain affiliates of Platinum Equity retained ownership of approximately 23.6% of the company’s shares. Those shares were sold in connection with the Amentum transaction that closed today.
“We are proud of everything we accomplished working with PAE and its leadership team over the years,” said Platinum Equity Managing Director Delara Zarrabi. “We believe PAE and Amentum are a great fit and are well positioned for continued success.”
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $25 billion of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 25 years Platinum Equity has completed more than 300 acquisitions.