Gichner Systems Group, Inc. (Gichner), the leading supplier of tactical military shelters to the US Armed Forces, announced today that it has acquired Charleston Marine Containers, Inc. (CMCI), located in Charleston, South Carolina. CMCI is the leading domestic manufacturer of intermodal, modular intermodal, and specialty container systems for the US Armed Forces.
CMCI’s products are in use worldwide and include numerous patented containers and container systems including the Quadcon, Tricon, Bicon, Tricold® and Quadcold TM containers. The operations of CMCI are to remain based in Charleston, and the company will continue to operate and trade using the CMCI name.
Altus Capital Partners LLC and Dunrath Capital, Inc., along with Gichner management and other investors, provided the equity for the acquisition. Altus Capital and Dunrath Capital, as co-equity investors with Gichner management, acquired Gichner in August 2007.
Commenting on the acquisition, Thomas E. Mills IV, Gichner president and CEO, stated, “The acquisition of CMCI is a key element of Gichner’s growth plan. The employees and operations in Charleston are impressive. CMCI provides new products and new markets for Gichner, in addition to over 240,000ft² of additional manufacturing capacity, bringing Gichner’s total manufacturing capacity to over 600,000ft². With the addition of CMCI, Gichner’s total annual revenues are approaching $100 million with funded contract backlog of approximately $70 million. Together with the additional talent of the CMCI employees, Gichner and CMCI should continue to increase sales in both businesses.”
Mr. Mills continued, “The vast majority of the acquisition is being funded with equity, which should provide Gichner and CMCI with the financing required to generate increased sales. CMCI’s customers will continue to enjoy high-quality products delivered in a timely manner and on schedule by CMCI’s highly-skilled and dedicated Charleston-based production and management teams. Customers should continue to contact their appropriate CMCI representative.”
Elizabeth Burgess, a senior partner of Altus Capital Partners said, “This acquisition demonstrates Altus Capital’s commitment to helping Gichner and our other portfolio companies make strategic acquisitions that expand market share and create operating efficiencies, even during difficult financing periods. Altus Capital helped both to initiate this important transaction as well as to provide the majority of the capital required.”
Steve Beitler, senior managing director of Dunrath Capital and a retired Army officer, said, “The combination of Gichner and CMCI provides significant potential for innovation in the field of military containerisation. We expect many new products to evolve as a result of the combined research and engineering talent of the newly merged companies.”