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KBR Closes $300M Purchase of Honeywell Govt Services Business; Stuart Bradie Comments

acquisitionHouston-based engineering and construction firm KBR (NYSE: KBR) has wrapped up its $300 million purchase of the U.S. government services business of Honeywell (NYSE: HON).

KBR said Monday it will integrate Honeywell Technology Solutions Inc. into the KBRWyle government services organization, which KBR expects to generate $2.5 billion in annual revenue across defense and aerospace programs.

KBR agreed to acquire HTSI in August and closed the $570 million acquisition of Wyle in July to form the government services business as part of a push to expand into the federal market and diversify revenue sources outside of the engineering and construction sector.

KBR CEO Stuart Bradie said he expects the HSTI purchase to help expand KBR’s geographic footprint and government service offerings that include cybersecurity, technical engineering, logistics, mission support and equipment maintenance services.

KBR used its existing credit facility to fund the transaction and expects the acquisition to be accretive to the company’s earnings per share in 2017.

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