Friday, August 27, 2010

ARINC Lands New Foreign Military Sales Work

The Carlyle Group's ARINC landed GSA contracts to handle foreign military sales for two aircraft, the C-27J Spartan and C-130J Super Hercules Transport. Given Carlyle's intent to flip ARINC, Uncle Sam's $43 million in orders could help boost any purchase price.

ARINC has a history with foreign military purchases. They procured Russian helicopters for Iraq, at twice the list price. The Russian manufacturer sold gear to America's enemies, requiring a waiver from Uncle Sam to keep ARINC out of trouble.

Kenneth Wainstein oversaw the Justice Department’s role in regulatory mechanisms, such as the Committee on Foreign Investment in the U.S. (CFIUS). In that role Wainstein approved Carlyle's sale of Landmark Aviation and Standard Aero to Dubai Aerospace. While President Bush publicly declared concerns about United Arab Emirates trading practices, privately he approved the Carlyle sale.

Wainstein remained silent after reviewing the Carlyle-UAE deal. However, he spoke nobly regarding penalties over the Russian incident:

"There is a price to be paid for illegally trading with outlaw regimes," Assistant Attorney General Kenneth Wainstein said in a statement.

Wainstein now does "White Collar Defense and Corporate Investigations" work for O'Melveny & Myers LLP. The Carlyle Group could use Wainstein's skills. My guess is they already know one another.