KBR Acquires Honeywell Government Services Provider, HTSI
19 Sep 2016
HOUSTON, Texas - (September 19, 2016) - KBR, Inc. (NYSE: KBR) announced today it has completed the acquisition of Honeywell Technology Solutions, Inc. (HTSI).
The acquisition of HTSI continues KBR's strategy of expanding its global Government Services offerings into higher end technical services that offer increased margins and a lower risk profile. The addition of HTSI builds on KBR's July acquisition of KBRwyle and HTSI will be integrated into KBRwyle to create a total capability Government Services organization that spans the spectrum of the life-cycle of aerospace and defense programs from research and development, through test and evaluation, to operations, maintenance, and field logistics.
The acquisition is expected to be accretive to KBR's earnings per share in 2017. The acquisition will provide balance as well as synergistic opportunities for collaboration and skills and resources sharing between KBR's business segments, especially project and program management skills.
"We are proud to add HTSI and its outstanding record of past performance to KBR's Government Services portfolio which further diversifies KBR's capabilities, and provides high-value, low-risk, more predictable and long-term earnings capabilities to provide balance to the more cyclical nature of the hydrocarbons business. This acquisition also provides synergistic opportunities across our business and expands our government service offerings while growing our geographic footprint and providing us access to new funding streams," said Stuart Bradie, President and CEO of KBR.
"The addition of HTSI will position KBR at the forefront of the government services industry as a leader in high end technical engineering and mission support, cyber security, logistics and equipment maintenance creating a global $2.5 billion Government Services organization providing full service capabilities and drawing on the best in class capabilities of all organizations," continued Bradie.
The transaction was funded through KBR's existing line of credit facility.
About KBR, Inc.
KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries, employing approximately 25,800 people worldwide with customers in more than 80 countries and operations in 40 countries across three distinct global businesses:Technology & Consulting, including proprietary technology in refining, ethylene, ammonia and fertilizers, and gasification; and niche consulting and know-how through subsidiaries Granherne, Energo and GVAEngineering & Construction, including Offshore Oil & Gas; Onshore Oil & Gas; LNG/GTL; Refining; Petrochemicals; Chemicals; differentiated EPC, and Industrial ServicesGovernment Services, incorporating KBRwyle, includes capabilities that span the full spectrum of government mission requirements including research and development, testing, engineering, logistics, deployed operations, and life-cycle sustainment.
KBR is proud to work with its customers across the globe to provide technology, value-added consulting services, integrated EPC delivery and Long Term Industrial Services to ensure consistent project delivery with predictable results. At KBR, we deliver.
Forward Looking Statement
The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.
KBR's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
For further information, please contact:
Vice President, Investor Relations
Marit Babin Stout
Director, Global Communications & Government Relations