Engility Corp. (NYSE: EGL) has sold its international development services business to North Carolina-based nonprofit organization Research Triangle Institute International for $24 million as part of the former’s efforts to pay down debt and reshape its portfolio.Chantilly, Virginia-headquartered Engility said in a Monday regulatory filing it expects to record a $20 million-$30 million pre-tax charge on fourth quarter earnings scheduled for release on March 7 as a result of the divestiture.
Engility expects International Resources Group Ltd. to generate $70 million in revenue for 2017, the Securities and Exchange Commission filing says.
IRG provides training, systems engineering, program management and operational support services to the U.S. Agency for International Development.
Engility said it decided to sell IRG as the business did not fit the government services contractor’s strategic direction to focus on technical services that include high-performance computing, enterprise modernization and solutions provisioning.
Engility carried approximately $1.05 billion in long-term debt on its balance sheet as of Sept. 30 with much of that assumed after its February 2015 acquisition of TASC.
Shares in Engility traded down 1.63 percent to $32.82 as of 10:47 a.m. Eastern time.
The McLean Group advised Engility on the transaction.
