Friday 19 April 2024

KBR acquires Honeywell Technology Solutions

HOUSTON, Texas, September 19, 2016

KBR, a global technology, engineering, procurement and construction company, announced today that it has completed the acquisition of Honeywell Technology Solutions (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, a statement said.

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 organisation that spans the spectrum of the life-cycle of aerospace and defence programmes from research and development, through test and evaluation, to operations, maintenance, and field logistics, it said.

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, the company said.

"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 organisation providing full service capabilities and drawing on the best in class capabilities of all organisations," continued Bradie.

The transaction was funded through KBR's existing line of credit facility. - TradeArabia News Service

Tags: KBR | Honeywell |

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