Cerberus agrees $1.5bn deal for defense contractor

Cerberus Capital Management has agreed to acquire defense contractor DynCorp International for $1.5 billion, including the assumption of debt.

DynCorp’s board approved the deal, and the company’s shareholders will vote on the transaction. The deal, if fully approved, is expected to close in the third or fourth quarter.

Cerberus will pay DynCorp’s shareholders $17.55 per share, representing a 49 percent premium based on the closing price of $11.75 on 9 April.

Cerberus, run by Stephen Feinberg, has obtained financing for the deal from Bank of America Merrill Lynch, Citi, Barclays and Deutsche Bank.

In March, Cerberus agreed to buy Caritas Christi Health Care, an operator of hospitals, for $830 million.