JULY 2008: THE STATE WE'RE IN
FLIR wins
record-setting defense contract
WILSONVILLE-BASED FLIR Systems in late May inked the largest
single defense contract in Oregon’s history — a
$358.4 million deal with the U.S. Army for optical and infrared
sensors.
To put that dollar figure in perspective, the total amount of
defense spending in the state in 2006 barely topped $560
million. This new contract is an extension of an existing
agreement with the Army, says Craig Stoehr, FLIR’s
director of corporate development. The work will be performed
in the company’s Portland facility.
Oregon is anything but a defense-contract powerhouse. In 2006
(the latest year numbers are available) it dropped from 40th to
43rd place — its lowest ranking in 10 years — when
compared to federal spending in other states. That’s not
to say there’s been no growth — contract dollars
have increased 28% since the start of the Iraq War — it
just hasn’t matched increases around the nation.
Stoehr says FLIR has been able to buck the trend by
approaching military contracts with a commercial business
model. The most important element of that approach is that the
company funds its own research and development so that it can
repurpose designs and products for other markets or defense
contracts. For instance, the technology purchased by the Army
in this latest contract is the same that FLIR sells to law
enforcement.
In 2005, about 20 defense companies formed the Pacific
Northwest Defense Coalition, of which FLIR is a member. Since
then it’s grown to 110 members. Executive director Brice
Barrett says other companies in the region are also learning to
diversify their base as a way to grow contracts. FLIR, however,
is probably unique.
“I would say this [contract] is indicative of a strong
effort by FLIR to grow,” he says. “I’m not
sure that it’s a sign of a trend, but it does show a
company that’s getting sharper by the
day.”
ABRAHAM HYATT
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MERGERS AND ACQUISITIONS
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PRICE
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EXP. CLOSE
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BUYER / PARENT (HQ)
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SELLER / PARENT (HQ)
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ANNOUNCED
|
|
$69M
|
Q2 ‘08
|
International Forest Products (BC)
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mills (BC, SD)/ Pope and Talbot (Portland)
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5/2
|
|
$63M
|
Q2’08
|
Blount International (Portland)
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Carlton Holdings (WI)
|
5/2
|
|
$37.5M
|
Q2’08
|
Waytronx (CA)
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CUI (Tualatin)
|
5/19
|
|
$8.5M
|
Q2’08
|
Hydro International (ME)
|
Eutek Systems (Portland)
|
5/9
|
|
ND
|
Q2’08
|
The Cadmus Group (MA)
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Quantec (Portland)
|
5/2
|
|
ND
|
Q2’08
|
LTC Global (Medford)
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Insurance Producers Alliance of America; Insurance
Producers Alliance (FL)
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5/5
|
|
ND
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Q2’08
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Mentor Graphics (Wilsonville)
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Ponte Solutions (CA)
|
5/15
|
|
ND
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Q2’08
|
Strands (Corvallis)
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NetworthIQ (Portland)
|
5/15
|
|
ND
|
Q2’08
|
Pacific Truck Center/ Pacific Power Products Co. (WA)
|
truck dealership (Coburg)
|
5/21
|
|
|
REAL ESTATE TRANSACTIONS
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|
PRICE
|
BUYER / PARENT (HQ)
|
REAL ESTATE (LOCATION) / SELLER (HQ)
|
ANNOUNCED
|
|
$24.25M
|
Birch Point/Prometheus Real Estate (CA)
|
Birch Pointe Apartments (Beaverton)/ Bayridge
Associates (WA)
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5/23
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|
$19.15M
|
Metro-Real Properties IV (CA)
|
Menlo Park Plaza (Portland)/ Kimco Realty (NY)
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5/23
|
|
$4.77M
|
Neil Sechan and Matthew Messner
|
Bel Aire Court Apartments (Beaverton)/ investor group
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5/5
|
|
$3.5M
|
Alter (Portland)
|
industrial property (Portland)/ Inland Acquisitions
Co.
|
5/16
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|
$3M
|
Farouk Al-Hadi
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two industrial buildings (Sherwood)/ REG Investments
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5/6
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$1.48M
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Bank of America
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5.1-acre (Portland)/ Catellus Land and Development
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5/28
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$1.1M
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Goodwill Industries of Columbia Willamette
(Beaverton)
|
retail building (Beaverton)/ Susan Covington Arkoff
Living Trust
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5/28
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$1M
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DKG&S Equity
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retail building (Beaverton)/ Pauwels Properties
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5/28
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|
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CAPITAL RAISING
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PRICE (TYPE)
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COMPANY (HQ) / LEADERSHIP
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INVESTOR (HQ)
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ANNOUNCED
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$358.4M (contract)
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FLIR Systems (Portland)/ Earl R. Lewis, president and
CEO
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U.S. Army Space and Missile Defense Command (AL)
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5/21
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$140M (senior secured credit facility)
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Mentor Graphics (Wilsonville)/ Walden C. Rhines,
chairman & CEO
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Bank of America Securities; KeyBank National
Association
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5/2
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$24.5M (equity)
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Learning.com (Portland)/William J. Kelly, CEO
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Educomp Solutions (India)
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5/20
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List researched by Mark
Druskoff
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