AE Industrial Partners is acquiring CDI Corp. (NYSE: CDI), a provider of engineering technology and managed staffing services, in a premium transaction valued at approximately $155 million. The target will become privately-held at the close of the deal.
Headquartered in Philadelphia, Pennsylvania, CDI provides engineering services to businesses in the energy, chemicals, industrial and aerospace, education, and infrastructure sectors. The target provides its clients with a variety of services, including: outsourced and up-front project planning, infrastructure and ship design, naval and aviation engineering, and construction management. CDI touts municipal and state government agencies among its list of clients, including the U.S. Department of Defense. The target operates from four business segments: enterprise talent, specialty talent and technology solutions, engineering solutions, and MRI. The deal, which comes after the target’s board of directors began seeking sale opportunities in March, is expected to close in the third quarter of 2017.
Boca Raton, Florida-based AE Industrial is a private investment firm backing companies in the aerospace, power generation and specialty industrial space. The firm takes a particular focus on technical manufacturing, distribution and supply chain management; maintenance, repair and overhaul; and industrial services.
AE Industrial, recognized as one of 10 Young and Thriving PE Firms worth watching, has remained active since raising more than $600 million to invest in aerospace companies. In June, the firm bought airplane engine repair service provider Vortex Aviation Inc. through its portfolio company Kellstrom Vertex. In 2016, the AE Industrial also acquired aerospace parts manufacturer AC&A and bought Moeller Mfg.
Houlihan Lokey (NYSE: HLI) is serving as financial adviser to CDI, while Dechert LLP is acting as legal counsel. Lincoln International is serving as financial adviser to AE Industrial, while Kirkland & Ellis LLP is acting as legal counsel.