By Kevin McCauley
Brunswick Group is handling the sale of the former Blackwater – now XE Services – training and security operation to USTC Holdings, which is led by private equity firms Forte Capital and Manhattan Partners.
Blackwater lost its status as America's go-to security contractor in Iraq and Afghanistan after its guards were accused in 2007 of slaughtering 17 Iraqi civilians in Baghdad, an event that triggered a raft of probes and lawsuits.
With the takeover, XE Services CEO and former Navy Seal Erik Prince is divesting his entire stake in the company and will neither be involved in management nor its operation, according to the agreement.
Jason DeYonker, managing partner of Forte, advised Blackwater on expansion of its world-class Moyock, N.C., training facility that was used by 50,000 U.S. government personnel and members of allied forces. He also co-managed Prince's family office and investments.
DeYonker believes the future of the security business "belongs to those companies with the highest standards of governance, transparency and performance," according to his statement.
The new XE will remain subject to a consent agreement that was signed with the State Dept. to settle violations of U.S. export control regulations.
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