Lone Star Said to Hold Talks for $2 Billion Defense Firm Titan

Lone Star Funds has held buyout talks with the owners of Titan Acquisition Holdings that could value the military contractor at about $2 billion, according to people with knowledge of the matter.

(Bloomberg) — Lone Star Funds has held buyout talks with the owners of Titan Acquisition Holdings that could value the military contractor at about $2 billion, according to people with knowledge of the matter.

Lone Star has held talks with lenders about financing for an acquisition, said the people, who asked not to be identified because the information was private. While Lone Star is among the groups circling Titan, a final agreement hasn’t been reached and the owners could elect to keep the business or sell to another party, the people added.

Titan’s owners, Carlyle Group Inc. and Stellex Capital Management, have been working with an adviser to examine strategic options for the company, including a sale, they said.

Representatives for Lone Star and Carlyle declined to comment, while representatives for Stellex and Titan didn’t immediately respond to request seeking comment.

A deal would extend the past year’s run of private equity acquisitions of defense companies. Maxar Technologies Inc. agreed to be purchased by Advent International in December while Carlyle agreed to buy ManTech International last May, according to data compiled by Bloomberg.

Portland, Oregon-based Titan, led by Chief Executive Officer Jim Marcotuli, was created in 2019 through the merger of infrastructure, defense and maritime services provider Vigor Industrial with MHI Holdings LLC, a ship repair and maintenance services company.

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