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.

Check Also

US Navy

Navy Seeks to Advance Maritime Sustainment Tech Prototype Projects Through Consortium

The Naval Surface Warfare Center, Philadelphia Division has asked industry for proposals to organize and run a consortium that will carry out individual and collaborative prototype projects related to maritime sustainment technology concepts through its members.

Marine Corps Taps BAE for Wargame Hub Design Project; Peder Jungck Quoted

BAE Systems has received a $19M contract from the U.S. Marine Corps to design a wargaming center prototype that will incorporate artificial intelligence, machine learning, data analytics, modeling and simulation processes.