DLH Holdings Corp. (NasdaqCM:DLHC) acquired Grove Resource Solutions, Inc. for approximately $190 million on December 8, 2022. The purchase price of $185 million is comprised of $178 million in cash and 526,898 shares of DLH Holdings' common stock, which were valued at $7 million in the aggregate, based on the 20-day VWAP of its common stock. The purchase price is subject to post-closing adjustments based on Grove?s final debt, cash, transaction costs, net working capital, and other adjustments. Current GRSi key operations leaders are expected to remain with DLH in leadership roles. DLH financed the acquisition through an amendment to its existing secured credit facility and cash on hand. First National Bank of Pennsylvania acted as agent, and F.N.B. Capital Markets, M&T Bank, and Atlantic Union Bank acted as joint lead arrangers. The credit facility was comprised of a syndicated term loan of $190 million and a revolving credit facility of $70 million. KippsDeSanto & Company acted as financial advisor to DLH Holdings Corp. Adam August and Lauren Benny of Holland & Knight LLP and Becker & Poliakoff LLP acted as legal advisors to DLH Holdings Corp. Robert W. Baird & Co. Incorporated acted as financial advisor to Grove Resource Solutions, Inc. Baker Tilly, Lockton Companies, and Wolf Den Associates provided consulting services to DLH in connection with the acquisition. Pillsbury Winthrop Shaw Pittman, Miles & Stockbridge and Morrison & Foerster acted as legal advisors to Grove Resource Solutions in the transaction.

DLH Holdings Corp. (NasdaqCM:DLHC) completed the acquisition of Grove Resource Solutions, Inc. on December 8, 2022. As reported, acquisition was financed through a combination of borrowings of $181.5 million under DLH Holdings' amended and restated credit facility; and common stock issued of approximately 0.5 million shares, which were valued at $6.5 million in the aggregate.