Gichner Acquires Charleston Marine Containers, Inc.
Dallastown, Pennsylvania - October 6, 2008 - Gichner Systems Group, Inc. ("Gichner"), the leading supplier of tactical military shelters to the US Armed Forces, announced today that it has acquired Charleston Marine Containers, Inc. ("CMCI"), located in Charleston, South Carolina. CMCI is the leading domestic manufacturer of intermodal, modular intermodal, and specialty container systems for the US Armed Forces.
CMCI's products are in use worldwide and include numerous patented containers and container systems including the Quadcon, Tricon, Bicon, Tricold® and Quadcold(TM) containers. The operations of CMCI are to remain based in Charleston, and the company will continue to operate and trade using the CMCI name.
Altus Capital Partners LLC and Dunrath Capital, Inc., along with Gichner management and other investors, provided the equity for the acquisition. Altus Capital and Dunrath Capital, as co-equity investors with Gichner management, acquired Gichner in August 2007.
Commenting on the acquisition, Thomas E. Mills IV, Gichner President and CEO, stated, "The acquisition of CMCI is a key element of Gichner's growth plan. The employees and operations in Charleston are impressive. CMCI provides new products and new markets for Gichner, in addition to over 240,000 square feet of additional manufacturing capacity, bringing Gichner's total manufacturing capacity to over 600,000 square feet. With the addition of CMCI, Gichner's total annual revenues are approaching $100 million with funded contract backlog of approximately $70 million. Together with the additional talent of the CMCI employees, Gichner and CMCI should continue to increase sales in both businesses."
Mr. Mills continued, "The vast majority of the acquisition is being funded with equity, which should provide Gichner and CMCI with the financing required to generate increased sales. CMCI's customers will continue to enjoy high-quality products delivered in a timely manner and on schedule by CMCI's highly-skilled and dedicated Charleston-based production and management teams. Customers should continue to contact their appropriate CMCI representative."
Elizabeth Burgess, a senior partner of Altus Capital Partners, Inc., said, "This acquisition demonstrates Altus Capital's commitment to helping Gichner and our other portfolio companies make strategic acquisitions that expand market share and create operating efficiencies, even during difficult financing periods. Altus Capital helped both to initiate this important transaction as well as to provide the majority of the capital required."
Steve Beitler, senior managing director of Dunrath Capital and a retired Army officer, said, "The combination of Gichner and CMCI provides significant potential for innovation in the field of military containerization. We expect many new products to evolve as a result of the combined research and engineering talent of the newly merged companies."
About Gichner Systems Group
Gichner Systems Group is a leader in the development of solutions for the transport and protection of mobile electronic systems. Gichner products protect military personnel and electronic and other systems from the environment during transport and operation in some of the world's harshest environments. Gichner Shelter Systems provides turn-key systems that are "rack ready" for the installation of its customers' electronic systems and service, maintenance, reset and repair of existing shelter systems. The Commercial and Emergency Mobile Systems division designs and manufactures specialized commercial products including high end truck bodies, fire safety trainers, mobile command posts and first responder systems for use by commercial, municipal and homeland security customers.
For more information about Gichner Systems Group, call us at 717-246-5453 or visit us at www.gichner.us.
About Altus Capital Partners LLC
Based in Westport, CT, Altus Capital Partners is a private equity firm that creates value by purchasing and growing profitable small to middle market manufacturing businesses with unrealized potential. Altus is led by a proven, seasoned deal-making team of high integrity that invests alongside management to help seize current growth opportunities through due diligence and leadership in long-term strategic thinking.
With over 50 years of investment experience, the Altus team utilizes its extensive knowledge of the private equity cycle to optimize company value through structured buyouts, recapitalizations, consolidations and divestitures. Altus' investment strategy builds businesses, fosters company loyalty and provides jobs.
Website: www.altuscapitalpartners.com.
About Dunrath Capital, Inc.
Based in Chicago, Dunrath Capital is a private equity firm that leverages the partnership's collective experiences in private equity investing, operations, government and entrepreneurship in combination with a pro-active, research-based investment strategy to create value for its portfolio companies and investors. While the Dunrath partnership has investment experience and a portfolio ranging from commercializations to leveraged buyouts, the firm has a focus on growth stage or earlier companies. The firm's current targeted investment sectors include safety, security, and defense. Website: www.dunrath.com.
For Gichner Systems Group:
Scott D. Sarine
Vice President of Marketing and Sales
717-246-5479
ssarine@gichnerss.com
For News Media:
Deborah Lewis
717-246-5453
dlewis@gichnerss.com
For Altus Capital Partners:
Rosalia Scampoli
212-537-5177
rscampoli@marketcompr.com
Marketcom Public Relations, Two Sound View Drive, Greenwich, CT 06830 United States
