By Rich Laden [email protected]
Colorado Springs defense contractor Vectrus is expanding again, agreeing to pay $112 million to acquire a Virginia-based company that specializes in providing management and technology services for federal and defense industry clients.
Vectrus is buying Zenetex of Herndon, Va., near Washington D.C. It’s the third acquisition for Vectrus since it was spun off in 2014 from Exelis, a defense and aerospace company.
Vectrus, a publicly held company that helps manage Department of Defense facilities and operations around the world, expects to finalize the acquisition this week, according to a Vectrus news release.
Its purchase expands the company’s “integrated capabilities in logistics and supply chain, security, advanced engineering, IT (information technology) and international readiness solutions,” the release says.
The deal also allows Vectrus to expand its content at client installations, facilities and bases via the addition of “mission-critical support services for vital defense aviation programs.”
The privately held Zenetex has a long history of serving the U.S. Navy, intelligence community and foreign militaries, which account for over 80% of the company’s revenue, the news release says.
“Zenetex broadens our reach into the intelligence community and expands our engineering and digital technology offerings, which is critical as we expand our capabilities to help our clients’ transition to a more instrumented and converged approach to supply chain and facility management,” Chuck Prow, Vectrus’ president and CEO, said in the release.
Vectrus officials couldn’t be reached for additional comment.
Tuesday, December 29, 2020
By Carten Cordell, Staff Writer
Vectrus Inc. (NYSE: VEC) made a bid to expand its footprint in both the federal and international government markets Tuesday, acquiring Herndon’s Zenetex LLC in a $112 million deal.
The local contractor — among the largest privately-owned companies in the D.C. area with $208 million in revenue in 2019, according to Washington Business Journal research — provides a range of information technology, logistics, engineering, communications and other services, including to allied countries through the U.S. government’s Foreign Military Sales (FMS) process.
For Vectrus, of Colorado Springs, Colorado, the move adds to its holdings in the defense, intelligence and IT infrastructure offerings, while expanding its operations overseas to the more than 40 countries that procure Zenetex’s services.
“Zenetex broadens our reach into the Intelligence Community and expands our engineering and digital technology offerings, which is critical as we expand our capabilities to help our clients’ transition to a more instrumented and converged approach to supply chain and facility management,” Vectrus president and CEO Chuck Prow said in a statement.
It’s not the first time that Vectrus, which spun off in 2014 from Exelis Inc., has sought to augment its government services offerings with a D.C.-area business. It purchased Alexandria-based Sentel Corp. for $36 million in 2018.
The Zenetex acquisition includes an anticipated $11 million transaction-related tax benefit and is expected to close in 2020. Vectrus executives said in a statement that they expect Zenetex to generate more than $200 million in revenue this year.
Zenetex was one of Greater Washington’s fastest-growing companies in 2013 and 2014, and again in 2019, according to Washington Business Journal research.
Tuesday, December 29, 2020
By Amanda Ziadeh
Vice President and Chief Information Officer, Vectrus
Chip Lohmeyer is charged with providing the IT infrastructure and applications that support Vectrus’ global workforce operating in 26 countries and territories with its Defense Department and intelligence community clients. He leads the company’s cloud migration and the deployment of new technologies to enable agility, collaboration and data-driven decision-making.
Vectrus’ investments in a cloud-based architecture allow it to rapidly stand up and effectively manage new program sites worldwide in some of the most austere locations and under various operating conditions, he said.
“Our new collaboration platform has helped our teams adapt quickly to remote work and manage dynamic and challenging situations on the front lines in support of our clients,” Lohmeyer added.
Vectrus is also replacing its business systems with cloud-based solutions for finance, supply chain and HR functions. With several sites live, Lohmeyer’s team is on the home stretch to complete the global rollout this year.
“With our modern application platform, we’re simplifying business operations and providing the data and tools to help our employees drive better client outcomes,” he said.
Lohmeyer and his enterprise IT organization play a critical role in enabling Vectrus to be adaptive, responsive and efficient as the company grows organically and integrates new business and capability through strategic M&A.
With its installation of the future and through the convergence of IT and operational technologies such as the Internet of Things, Vectrus is transforming mission operations into smart, integrated military bases that reduce costs, improve threat visibility and drive smart decisions.
Sunday, November 29, 2020
By Wayne Heilman
Although the COVID-19 pandemic cut revenue by nearly $13 million for Colorado Springs-based defense contractor Vectrus, profits still jumped 32.5% in the third quarter, the company reported Tuesday.
Earnings rose $2.5 million from a year earlier to $10.4 million, or 88 cents a share, during the July-to-September period and would have increased another $2.1 million without pandemic-triggered contract work delays, the company said. The earnings surge came despite a 2.1% drop in third-quarter revenue to $352.4 million, compared with the third quarter of last year. Vectrus CEO Chuck Prow credited the improved earnings to $2 billion in contract wins during the quarter.
Revenue for the first nine months of the year was up 2.3% from a year earlier to $1.04 billion, but earnings were off 10.5% to $20.2 million, or $1.72 a share. That included a pandemic-related hit totaling $4.2 million due to work delayed because the company’s employees couldn’t get on military bases to complete contract work as a result of COVID-19 restrictions.
By Sarah Sybert
Vectrus has begun testing procured biodegradable materials with food waste from base dining facilities in a live composting demonstration at Camp Arifjan, Kuwait, in support of the U.S. Army’s environmental sustainability goals, the company reported on Monday.
“We are excited to help lead this compost testing phase at Camp Arifjan that represents significant progress in meeting the Army’s environmental sustainability goals in Kuwait, while supporting the local economy and improving base resiliency,” said Chuck Prow, president and CEO of Vectrus and 2020 Wash100 Award recipient.
Vectrus has led the U.S. Army testing team of U.S. Army Central environmental contractors. The project will research new biodegradable materials and identify processes best suited for building base resiliency. The outcome of the tests will reduce waste sent to landfills and establish a legacy of environmental sustainability efforts on U.S. Army installations in Kuwait.
During testing, biodegradable bags filled with shreddings of the polylactic acid (PLA), including corn starch materials dining utensils, vegetable discards, eggshells, coffee grounds and base shrubbery, were emptied into a compost bin to determine how long it takes PLA materials to decompose in the specific environment.
Vectrus’ testing is part of the U.S. Army’s effort to adopt environmental initiatives that help achieve base resiliency and enhance environmental stability. The process identified and demonstrated by Vectrus has decreased the time required for items in plastic bags and utensils to fully decompose from 80 years to three months or less.
All the compost materials used in the test were procured from Kuwaiti vendors to support the local economy.