May 8 2008
KBR today announced that it has signed a definitive agreement that allows the company to proceed with plans to acquire 100% ownership of BE&K, Inc., a privately held, Birmingham, Alabama-based engineering, construction and maintenance services company. The transaction, which is subject to regulatory approval, is valued at $550 million, subject to a post-closing adjustment.
With revenues for the year ended March 30, 2008, of approximately $2 billion, BE&K serves both domestic and international customers, and employs roughly 9,000 people. BE&K’s international operations are located in Poland and Russia. According to Engineering News Record (ENR), in 2007, BE&K was the 39th largest design firm as well as the 48th largest contractor. 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. In addition to these offerings, BE&K also provides services to commercial and industrial clients, including healthcare and education markets, through its Buildings Group, and provides premier construction and facility life-cycle services to the United States Government.
“Growing our Services business unit remains a key strategic objective for KBR. 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.
“BE&K brings new people, skills and access to new markets to KBR, giving us the opportunity to dramatically strengthen KBR’s engineering, construction and maintenance activities, not only in North America, but internationally as well. We look forward to welcoming BE&K’s employees to KBR and anticipate building a strong and successful future together.”
“This sale is the logical next step in the company’s growth,” said Mike Goodrich, BE&K Chairman and CEO. “This will bring both companies into new markets while growing those which BE&K already serves. Equally important, our cultures, values and the way we treat our employees, clients and communities are very similar. We look forward to building on our common excellence in these foundation qualities.”
“KBR was built on a rich legacy of construction, fabrication and maintenance that dates back over 100 years,” added David Zimmerman, President, KBR Services. “That legacy has provided us the foundation on which we can continue to build our domestic engineering, construction and industrial services business. With a similar legacy, the added service offerings, geographic position and key client relationships that BE&K will bring to KBR positions the company for growth and future success in these markets.”