Carlyle to Buy Annapolis Communications Firm

The Carlyle Group, a private-equity firm based in the District, said yesterday it had agreed to acquire ARINC, a major provider of communications technology to the military and commercial aviation companies.

The transaction is the latest in a string of high-profile buyouts by Carlyle and other giant private-equity firms. This week, the Blackstone Group announced it was buying the Hilton hotel chain for $26 billion. On Monday, Carlyle said it would buy nursing home provider Manor Care, formerly of Gaithersburg, for $6.3 billion.

Carlyle has nearly $60 billion under management, making it one of the biggest players in the private-equity field. Neither side provided financial details of the transaction. ARINC, a privately held company based in Annapolis, has annual revenues of more than $900 million. The deal is expected to close in the third quarter, pending regulatory approval.

"We have long admired ARINC's leadership position and impressive track record of growth," Peter Clare, a Carlyle managing director and head of the firm's global aerospace and defense group, said in a statement. "We believe that ARINC is well positioned to capitalize on several favorable macro trends in both its commercial and government market segments."

ARINC was founded in 1929 to coordinate radio communications for the nascent commercial airline industry. Airlines own 90 percent of the company. AMR, the parent of American Airlines, said in a Securities and Exchange Commission filing yesterday that it would earn a profit of about $140 million on the sale. UAL, the parent of United Airlines, said in a filing that its gain would be $40 million.

ARINC is a global provider of transportation communications and systems engineering, according to a company news release. The company "develops and operates communications and information processing systems and provides systems engineering and integration solutions to five key industries: airports, aviation, defense, government, and surface transportation," according to the release.

Two-thirds of ARINC's revenues come from the military. It makes wireless communications networks for the military and air-to-ground communications systems for the aviation industry.

ARINC has 3,300 employees in 100 offices worldwide, with regional headquarters in London and Singapore. "This is an important step in the evolution of ARINC," John M. Belcher, chairman and chief executive, said in a statement.