Saturday, March 2, 2013

Carlyle's Long Road to Monetizing ARINC

The Carlyle Group planned to monetize affiliate ARINC in 2010.  First it was an outright sale, then an IPO.  Neither occured.  Carlyle sold ARINC's defense division to affiliate Booz Allen Hamilton in 2012 for $154 million.  Rest assured Uncle Sam will pay.

The outright sale option is back.  JP Morgan and Evercore will shop ARINC for Carlyle.  A private auction will be held this spring.  

ARINC kicked off 2013 with news of World Bank procurement violations.  Those netted a 33 month ban.  Will those kicking ARINC's tires find this perforation?  It's not Carlyle's first bribe, not will it be their last.  Greed and mendacity drive a wide range of behaviors, many unethical.