Lone Star Americas Acquisitions, Inc. has held buyout talks with the owners of Titan Acquisition Holdings L.P. that could value the military contractor at about $2 billion, according to people with knowledge of the matter. Lone Star has held talks with lenders about financing for an acquisition, said the people, who asked not to be identified because the information was private. While Lone Star is among the groups circling Titan, a final agreement hasn't been reached and the owners could elect to keep the business or sell to another party, the people added.

Titan's owners, The Carlyle Group Inc. (NasdaqGS:CG) and Stellex Capital Management LLC, have been working with an adviser to examine strategic options for the company, including a sale, they said. Representatives for Lone Star and Carlyle declined to comment, while representatives for Stellex and Titan didn't immediately respond to request seeking comment.