Blackwater woes delay CdA firm’s acquisition

The pending sale of a Coeur d’Alene-based police training-video company to Blackwater USA, under fire for its militaristic actions in Iraq, has hit a snag as the Iraqi government pursues the military contractor’s ouster.

Rick Gallia, chief executive officer of Backup Training Corp., said he hopes the maelstrom of news and controversy about Blackwater subsides so he can complete the sale.

Several months ago the companies signed a letter of understanding. Final terms have not been hammered out, said Gallia. He declined to discuss a sale price, but held out hopes a deal could be done by December.

Gallia owns 89 percent of Backup Training with his wife, company founder and president Yvonne Ellis. The business has 17 employees and annual sales of less than $5 million.

The business has been performing contract work for Blackwater, mostly offering computer training materials and extended learning classes.

The business relationship has grown and Gallia said a Blackwater takeover of The Backup would add jobs and much needed investment money to expand the training offerings.

Blackwater performs security service contracts in Iraq and has been under fire for high-profile killings and gunbattles that have led some members of Congress to accuse the firm of employing mercenary killers.

Blackwater was founded by a 38-year-old former U.S. Navy Seal. It is now a multibillion-dollar company and at the center of questions about the appropriateness of military contracting and excessive use of force.

Among the actions scrutinized include last month’s killing of 17 people when Blackwater guards unleashed heavy gunfire into traffic. The fallout has included the Congressional probe and the Iraqi government’s insistence that Blackwater be booted from the country and be forced to pay $8 million to each victim’s family.

Gallia said he has been asked to refrain from commenting on Blackwater’s problems in Iraq.

“I will say that sometimes things aren’t always reported the right way,” Gallia said, “What we know of the company is that they are a bunch of outstanding Americans who are working hard to train other Americans and are doing a good job.”

Backup Training finds experts in law enforcement training, taps their experience to produce specialty videos and computer classes that are also recognized by some colleges for credit, and sells the packages to colleges and police.

The company also provides some video training products for the military, including National Guardsmen.

“We’re not the experts, we just assemble, market and deliver the product,” he said.