ALST

The Company

Advanced Laser Systems Technology, Inc. (ALST) is a leading designer, manufacturer, and marketer of lasers and laser rangefinding systems that are used in both military and civilian applications to measure the distance to fixed or mobile targets of interest. Founded in 1987, ALST has more than 40 customers, most of whom are major U.S. and overseas defense contractors.

The Situation

ALST’s shareholders were seeking liquidity at a valuation that reflected the Company’s significant growth potential and niche positioning as a component supplier of custom manufactured, high-end laser rangefinders. They also needed to address severe manufacturing capacity constraints caused by an upsurge in new customer orders. Accordingly, ALST’s shareholders were interested in finding a partner that could assist them in securing additional capacity to allow for further growth of the business.

The Transaction

KPMG Corporate Finance conducted a competitive process to identify the partner that offered the greatest combination of value and strategic fit. By leveraging its deep understanding of the industry and extensive relationships with strategic buyers, KPMG Corporate Finance presented a targeted group of potential counterparties to the company that resulted in a successful sale at a 60 percent increase in value over initial offers. The ultimate acquirer, L-3 Communications Corporation (NYSE:LLL), which makes secure and specialized systems for satellite, avionics, and marine communications, paid a premium to establish a position in the growing laser designator sector and to obtain a technology source for its own products and systems. With this acquisition, L-3 Communications Corporation was prepared to assist ALST in bringing its new laser designator to market.