Engility sees DRC acquisition significantly accretive to FY15 earnings


Engility Holdings (EGL) announced it has completed the acquisition of Dynamics Research Corporation (DRCO). Under the terms of the agreement, which was structured as a tender offer followed by a back-end merger, Engility acquired all outstanding shares of DRC’s common stock for cash at a price of $11.50 per share and paid approximately $89M to pay off existing debt, transactions fees and expenses. The transaction, which was financed through the $150M accordion feature on Engility’s existing credit facility, cash on hand and Engility’s existing revolving credit facility, is expected to be accretive to Engility’s 2014 earnings and significantly accretive to 2015 earnings and beyond.

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