Monday, 26 February 2018 07:20 AM
LONDON, UK / ACCESSWIRE / February 26, 2018 / Active-Investors.com has just released a free research report on KBR, Inc. (NYSE: KBR). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=KBR as the Company's latest news hit the wire. On February 23, 2018, the Company announced the signing of a purchase agreement to acquire Stinger Ghaffarian Technologies, Inc. ("SGT"). SGT is a privately-held Company and a leading provider of technology solutions, engineering services, mission operations, scientific, and IT software solutions in the Government Services market. The acquisition will allow KBR to strengthen its presence in this industry. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, KBR, Inc. most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Commenting on the acquisition, Stuart Bradie, President and Chief Executive Officer (CEO) of KBR, stated:
"SGT is a great Company with very talented people and is the right fit for us as we continue to grow our Government Services portfolio and position ourselves to expand into new areas in-line with our strategy."
Dr. Kam Ghaffarian, President and CEO of SGT, added:
"As a combined entity, we will be able to bring powerful capabilities and solutions to the marketplace and broaden our service offerings for our existing customers. The alignment of the strong employee focused cultures and the combined business synergies makes this an ideal situation."
Transaction Details
KBR will acquire SGT through its wholly-owned subsidiary, KBRwyle Technology Solutions, LLC ("KBRwyle"). KBRwyle will acquire SGT from Kamco Holdings, Inc. by paying $355 million, subject to adjustments at the time of closing of the agreement. The deal has been approved by the Board of Managers of KBRwyle, the Board of Directors at Kamco Holdings, and the shareholders of SGT. The deal is expected to close at the end of Q1 2018 and is subject to clearance under the Hart-Scott-Rodino Act, regulatory approvals, and other closing conditions. KBRwyle plans to fund the acquisition using a mix of cash in hand and fresh debt in the form of Senior Credit Facilities.
Once the transaction is complete, SGT will become a business unit within KBRwyle. KBR plans to retain SGT's current team to ensure continuity of services to customers during the transition.
Advantages for KBR
KBR expects the deal to be accretive to the adjusted earnings per share (EPS) within the first full year after closing, excluding one-time transaction costs.
The deal allows KBR to expand its high-tech professional services to NASA and other Government entities, given that SGT is a government contractor that specializes in NASA contracts.
SGT has a history of delivering technology solutions and services to the US government for space programs, national security, and civilian operations. The deal will allow KBRwyle to strengthen its position as a leader in the human space explorations arena and take advantage of new opportunities in both civil and military space. KBR will be able to help its clients and improve its participation in opportunities in the national security and commercial space markets. The deal gains major significance given NASA's recent budget requests prioritizing growth in deep space exploration, science, low earth orbit, and spaceflight operations. President Donald Trump has also suggested that government agencies work with private entities to run the International Space Station. The deal is a great strategic move for KBR under these compelling new business opportunities in both civil and military space.
KBR had previously acquired Wyle Inc. and Honeywell Technology Solutions Inc. ("HTSI") to build its technology and mission capabilities. KBR completed the acquisition of Wyle, a leading provider of specialized engineering, professional, scientific, and technical services primarily to the US federal government, in July 2016 for $570 million. KBR had announced the acquisition of HTSI, a leading global provider of professional space, security, logistics, and manpower services in the Government Services market for approximately $300 million. SGT is the second Company in the US and the 22nd in the world to hold the CMMI Institute's Capability Maturity Model Integration (CMMI)® Level 5 for Development and Services. The acquisition of SGT will act as an accelerator of KBR's strategy of expanding its capabilities in the area of providing Government Services.
About Stinger Ghaffarian Technologies, Inc.
Greenbelt, Maryland-based SGT was founded in 1994 by Harold Stinger and Dr. Kam Ghaffarian. The privately-owned Company provides award-winning, high-value engineering, mission operations, scientific, and IT service solutions to the US government for space programs, national security, and civilian operations. After 20 years of operations, the Company has offices across US and is supported by a team of over 2,500 employees.
About KBR Inc.
Houston, Texas-based KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Hydrocarbons sectors. The Company has three main business units, namely: (i) Government Services, (ii) Technology & Consulting, (iii) and Engineering & Construction. The Company has customers in over 80 countries and operations in 40 countries across the globe. The Company employs over 34,000 people worldwide.
Stock Performance Snapshot
February 23, 2018 - At Friday's closing bell, KBR, Inc.'s stock tumbled 15.58%, ending the trading session at $15.01.
Volume traded for the day: 10.29 million shares, which was above the 3-month average volume of 1.59 million shares.
Stock performance in the previous six-month period – up 1.01%
After last Friday's close, KBR, Inc.'s market cap was at $2.49 billion.
Price to Earnings (P/E) ratio was at 29.20.
The stock has a dividend yield 2.13%.
The stock is part of the Services sector, categorized under the Technical Services industry. This sector was up 1.4% at the end of the session.
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