Tuesday, July 1, 2008

KBR makes a big acquisition

KBR announced this morning that it has completed the $550 million acquisition of BE&K, a privately held, Birmingham, Alabama engineering, construction and maintenance services firm.

The transaction is as big as the $550 million figure would indicate, given that BE&K was the 47th largest design firm in 2007 as well as the 39th largest contractor, according to Engineering News-Record. BE&K also maintains Top 10 ENR positions in the areas of: pulp and paper contracting, pulp and paper design, chemical plant design, operations and maintenance design, chemical plant contracting, industrial process contracting, aerospace contracting and food processing plant contracting. According to The Birmingham (Alabama) News, BE&K has annual revenue of $2 billion and 9,000 employees.

"Acquiring BE&K is a significant step in re-establishing KBR as a leading North American contractor and maintenance services provider," said William P. Utt, KBR chairman, president, and CEO. Utt added that the acquisition gives KBR the opportunity to expand its engineering, construction, and maintenance activities not only in North America, but internationally as well.

Mike Goodrich, BE&K president and CEO, and Ted Kennedy, one of BE&K's founders, have agreed to stay on board to help transition and integrate BE&K into the Houston, Texas-based global engineering, construction and services firm.

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