Booz Allen Hamilton divests government business to The Carlyle Group

05 August 2008

Leading strategy and technology consulting firm Booz Allen Hamilton Inc has announced the completion of the previously-announced separation of its US government and global commercial businesses, as well as the sale of a majority stake in the US government consulting business, to The Carlyle Group for $2.54 billion.

On 16 May Booz Allen Hamilton had announced that it would separate its US government and global commercial businesses, selling a majority stake in the US government business to The Carlyle Group, to enable the consulting firm's two businesses to refocus on their distinct end markets through this strategic realignment.

With the completion of the strategic realignment, Booz Allen, led by current chairman and CEO Dr Ralph Shrader, will focus on serving its US government clients.

''Completing this separation of our two core businesses is an important milestone in our history," said Shrader. "The success of these businesses over many decades and the significant opportunities that lie ahead for both are a tribute to generations of Booz Allen people and clients. Looking ahead, we are excited about Carlyle's investment and the ability to leverage their experience in our growing US government consulting business, and we look forward to continuing to collaborate with our Booz & Company colleagues on assignments where our joint capabilities benefit clients."

With Carlyle's investment, Booz Allen's commercial business will form a stand-alone company, which will be owned and operated by the commercial officers and will stay focused on global management consulting.

 ''Booz Allen is already a clear leader in the management consulting industry, with a powerful reputation, enviable client base, strong financial position, and unwavering commitment to serving the senior agenda of the world's leading institutions," said Dr. Shrader. "As a stand-alone company, the new commercial and international business will have greater agility to meet the needs of its client base, maximise its potential, and realize significant growth across the globe,'' he added.