Booz splits up

Booz Allen Hamilton announced Friday that it will separate its US government and global commercial businesses, while in the process selling a majority stake in the US government business to Carlyle for US$2.54bn.

“This separation of our core businesses marks a dynamic new chapter in our history,” stated Ralph Shrader, chairman & chief executive officer of Booz Allen Hamilton.

“For 94 years, Booz Allen has adapted and evolved as market realities have changed and our areas of expertise have grown. We continually evaluate whether we have in place the best strategy and structure to succeed and deliver the highest quality service to our government and commercial clients, which is our top priority.”

Through the strategic realignment, unanimously recommended by Booz Allen’s board of directors, the commercial and international business will become an independent company focused on global management consulting.

The transaction is expected to close in mid-late 2008, subject to shareholder and regulatory approvals.