Houston-based engineering and construction firm KBRÂ (NYSE: KBR) has wrapped up its $300 million purchase of the U.S. government services business of HoneywellÂ (NYSE: HON).
KBRÂ said MondayÂ it will integrate Honeywell Technology Solutions Inc. into the KBRWyleÂ government services organization, which KBR expectsÂ to generate $2.5 billion in annual revenue acrossÂ defense and aerospace programs.
KBR agreed to acquire HTSI in August and closed the $570 million acquisition of WyleÂ in July to form the government services business as part of a push toÂ 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 KBRâs 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 companyâs earnings per share in 2017.