Greenland Technologies Holding (NASDAQ:GTEC)

LONDON, March 3, 2011 /PRNewswire/ -- Global Strategies Group (GLOBAL), the former owner and now largest shareholder in GLOBAL Defense Technology and Systems (GTEC), and the GTEC board have accepted an offer to sell the GTEC business to a US based investment firm, Ares Management LLC (Ares).

GLOBAL acquired GTEC (then SFA) in February 2007. Over the following two and a half years, GLOBAL transformed the business, doubling revenue, trebling earnings and adding strategic focus and direction before completing a highly successful IPO of the company in November 2009.

Ares has made a cash tender offer of USD24.25 per share, representing a premium of approximately 51% over GTEC's closing stock price as of March 2, 2011, and 56% over its 90-day average closing stock price. For GLOBAL, the sale will add significant funds to an already strong balance sheet and dynamic organic growth performance, allowing for the development of investment opportunities that will keep GLOBAL at the forefront of the defence and national security sector.

• Revenue for the fourth quarter 2010 was $82.2 million, which reflects 47% growth compared to $55.8 million in the fourth quarter of 2009.
• Total segment operating income for the fourth quarter was $8.8 million, or 10.7%.
• Operating income for 2010 of $6.7 million, or 8.1% operating margin
• Diluted earnings per share (EPS) of $0.39 for the fourth quarter.

“Our fourth quarter results demonstrate the momentum that GTEC built in the second half of 2010 with sizable new contract awards and the completion of two significant acquisitions, which provide heightened visibility to our 2011 outlook,” said John Hillen, President & CEO of GTEC. “GTEC’s strategic positioning in priority funding areas – counterterrorism, Cyber Security, C4ISR and force mobility – provides resistance to potential market headwinds, a fact that is demonstrated by our 2011 growth outlook.”

Forward Guidance – Solid Organic Growth Outlook

GTEC’s first quarter 2011 and full year 2011 guidance is summarized in the table below. GTEC’s guidance does not include the assumption of any future acquisitions.

“We are poised for an exceptional growth year in both revenue and earnings as demonstrated by our 2011 outlook, which anticipates strong organic revenue growth and expanding operating margins,” said Joseph Cormier, Executive Vice President & Chief Financial Officer of GTEC. “We are already seeing the benefit from shifting our business mix towards our TIS segment, which is positioned in the fastest growing segments of the marketplace. Our expanding business development pipeline is a result of a broader suite of capabilities across GTEC that we are able to deliver to our mission-focused customer base.”