A Note From Our President & Founder Jim Garrettson
KBRâs expansion move into the U.S. and global government services markets became official on Monday when the Houston-based engineering company closed its $300 million purchase of the business known as Honeywell Technology Solutions Inc.
This dealâs closure took place nearly two months after KBR completed the $570 million acquisition of Wyle and these two transactions add up to what the buying party believes is now a $2.5 billion player in government services across the world with 7, 000 employees.
For KBR, this almost $900 million investment in the public sector market represents a move to diversify beyond its traditional engineering and construction work as the company expects 41 percent of its total annual sales to come from government services.
KBR CEO Stuart Bradie said in the HTSI deal closureâs announcement that his company views its bolstered government services business base as a provider of âhigh-value, low-risk, more predictable and long-term earnings capabilities” to help balance against the cyclical hydrocarbons business.
This statement reiterates Bradieâs message to investors in May after KBR first announced the Wyle deal, when he endorsed the federal marketâs stability.
âThereâs good visibility in the government side because of lengths in procurement cycles and we can see whatâs down the tunnel 12-to-24 months out.â
To reflect its increased market presence and emphasis, KBR officially joined Executive Mosaicâs GovCon Index of 30 publicly-traded government contractors before markets opened Thursday for readers to follow and compare its stock to other GovCon services identities Leidos, SAIC, Engility, CACI and many others.
KBR entered the GovCon Index in a week that has seen a vast majority of equities rise after the Federal Reserveâs decision Wednesday to leave interest rates unchanged.
One additional full week of trading remains before the third quarterâs end and then itâs onto earnings season for many GovCon primes.
OFPP Administrator Anne Rung to Join Amazon Business
Rung will leave her post as the U.S.â chief acquisition officer later this month and oversee a government-focused supplier initiative at the global sales giant.
Larry Barfield, former director of capture management at KBR‘s (NYSE: KBR) government services subsidiary KBRwyle, has been named vice president and capture management leader for the federal business group of Parsons. He brings more than 30 years of security and government services market experience to his new position, Carey Smith, Parsons federal group president and an
December 12 – December 16, 2016 Click here to see Real-Time GovCon Sector Quotes A Note From Our President & Founder Jim Garrettson This week reminded us that change is always a constant in the government contracting arena as we learned of an impending relocation by a large defense contractor and the return of a veteran GovCon
Mark Sopp, former executive vice president and chief financial officer at Leidos Holdings (NYSE: LDOS), will join KBR (NYSE: KBR) as CFO in the first quarter of 2017 and succeed Brian Ferraioli who will retire. Houston-based KBR said Tuesday Ferraioli and Sopp will work together to achieve a smooth transition for the company’s financial organization. Sopp held the CFO