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22 June 2010 By Robert Cyran Follow @rob_cyran

The $300 mln IPO of defense services contractor Booz Allen looks like a home run for the private equity firm, as Uncle Sam’s outsourcing has bolstered its business. If valued in line with what Carlyle paid, it will make almost 2.5 times its investment in just two years.

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Booz Allen Hamilton plans to sell $300 million of stock in an initial public offering. The government defense contractor is owned by private equity group Carlyle, which bought it in 2008 for $2.5 billion, including $956 million in equity. The private equity group owns a 79 percent stake in the company with its partners holding the remainder. It has not estimated what percentage of the company it will sell.

The company plans to use proceeds to pay down borrowings. It had net debt of $1.3 billion at the end of March.

Booz Allen Hamilton paid a $497.5 million dividend to investors in 2009, of which $444 million went to Carlyle.

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