So why were so many media outlets, editorialists and bloggers clamoring to say that the purchase was a “hoax”?
That’s a good question. The more cynical among us might suspect a financial incentive from Monsanto itself to such “journalists.” Monsanto indeed has hired a public relations team to seek out critical blogs and websites reporting on their crimes against both Nature and humankind. We have seen this first hand in comments on PoliticalBlindSpot.com articles on Monsanto. It is not beyond the realm of possibilities that they have created blogs where seemingly legitimate authors write organic thoughts, observations and rebuttals. The public presumes these are real-world people, when in fact they are working PR for the company.
But the core argument of those who claim that the Monsanto purchase of Blackwater is not true lies in the fact that we can only officially document Blackwater being hired by Monsanto for years. Immediately following this extensive work that Blackwater did for Monsanto, they sold the company. Because of the nature of how the sale transpired, it is impossible to document who the sale was to. The obvious and logical conclusion to insiders (particularly in the private security industry), however, is that the sale was in fact to Monsanto who had been employing the group.
Xe (now Academi) has, indeed, been purchased, and while there’s no way of DOCUMENTING who the new owners really are, the logical conclusion would be that Monsanto, who had been employing them prior to the sale are the new owners. This, of course, would also make sense of the secrecy surrounding the deal and the identity of the new owners. The company was bought out by private investors via private equity companies that don’t have to divulge any of their dealings, with Bank of America providing much of the $200 million in financing for the deal.
New York-based USTC Holdings said it will acquire Xe and its core operating subsidiaries, but did not disclose the price or terms of the agreement in a statement.
USTC Holdings is an investor consortium led by private equity firms Forte Capital Advisors and Manhattan Partners.
Various researchers have been trying to document the buy via a paper trail, but so far without much luck. That, of course, is the point…
Keeping it private
One thing that is known: Forte Capital Advisors is the baby of long-time Blackwater ally Jason De Yonker:
DeYonker has unique experience with the Company that dates back to its founding in the late 1990s. He advised the Company through development of its early business plan and expansion of the Moyock training facility as well as supporting negotiations of its first training contracts with U.S. government agencies. Between 1998 and 2002, Mr. DeYonker co-managed Xe founder, Erik Prince’s family office which included management of Mr. Prince’s portfolio companies.
What does that mean? The guy is a glorified accountant.
Prior to joining Forté, Jason co-managed a +$100 million family office. In addition to actively managing various platform companies, Jason was a part of the executive team responsible for family wealth management.
Jason has spent the last 18 years advising on various mergers, acquistions and divestitures with an aggregate transaction value greater than $1 billion. Jason’s experience include: transaction advisory, portfolio management, real estate development, venture capital and cross border dealings. Jason began his career with Arthur Andersen Corporate Finance Group, and was a Director in Deloitte & Touche’s Corporate Finance Group. He also was the Finance Director for the West Family Trust, a venture capital group focused on cross-border transactons.
Jason recieved a Bachelor of Business Administration, with a concentration in finance and accounting, from the Univeristy of Michigan.
The other investor? It looks like the very junior partner will be Manhattan Partners, a private equity company – a shop that gathers money from anonymous rich investors and uses the pool of cash to leverage buyouts of big companies they wouldn’t have been able to take over on their own.
Manhattan Partners invests in “compelling growth and special situation transactions,” but this will be their first known foray into defense industries – WarIsBusiness.com reports (via Spencer Ackerman):
Manhattan Growth Partners is led by Dean Bosacki and Patrick McBride. Bosacki serves on the board of “the world’s largest commencement photography business,” among other companies. Manhattan Growth Partners, which describes itself as “a progressive thinking private equity firm,” also holds a majority interest in Hugo Naturals, a line of organic, vegan-friendly soaps, lotions, scents and soy candles sold at Whole Foods and other greenwashed retailers.
At the end of the day, it would seem the logical conclusion is that in spite of arguments to the contrary, Monsanto in fact did by the Blackwater mercenary group… or at least the renamed Blackwater Xe (now Academi) Services group. The big question now is why?
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