It looks as if the barbarians won't be teaming up with the mercenaries as private equity firm Cerberus Capital Management LP has pulled out of discussions to invest in security services firm Blackwater Worldwide.
According to an ABC News report, the distressed investing specialist was in talks to take a $200 million stake in privately held Blackwater. However, once news of a possible deal came out, the publicity-shy Cerberus soon broke off talks with the controversial private security group, which has drawn heavy criticism over its involvement in Iraq.
Of course, with a recently renewed $1.2 billion private security contract with the State Department, Blackwater probably is not hurting for money, but was instead likely looking for means to speed its growth even faster. - George White
See ABC News story
See profile of Cerberus on TheDeal.com
Comments
Talk about a deal with major customer concentration issues.