HOUSTON, Feb. 23, 2018 -- KBR, Inc. (NYSE: KBR) announced today it has entered into a definitive agreement to purchase Stinger Ghaffarian Technologies, Inc. (SGT) a leading provider of technology solutions, engineering services, mission operations, scientific and IT software solutions in the Government Services market.
SGT has a distinguished heritage delivering technology solutions and services to the U.S. government for space programs, national security and civilian operations. The addition of SGT solidifies KBRwyle's position as an established leader in human space exploration and opens up significant new opportunities in both civil and military space. The acquisition will also strengthen KBR's support for strategic clients and enhance our position for opportunities in the national security and commercial space markets.
NASA's recent budget requests prioritizing growth in deep space exploration, science, low earth orbit and spaceflight operations and its emerging strategy to potentially utilize public-private partnerships or other commercialization to support the International Space Station (ISS), provides validation for KBR's strategy across NASA which is directly supported by the acquisition of SGT.
This strategic acquisition of SGT builds on previous acquisitions of Wyle and HTSI and will be an important accelerator to KBR's strategy to increase technology and mission capabilities. SGT is only the 2nd company in the United States and the 22nd in the world to hold the CMMI Institute's Capability Maturity Model Integration (CMMI)® Level 5 for Development and Services.
"SGT is a great company with very talented people and is the right fit for us as we continue to grow our Government Services portfolio and position ourselves to expand into new areas in line with our strategy," said Stuart Bradie, KBR President and CEO. "With our combined best in class capabilities and shared position for innovation and performance, we can capitalize on revenue synergies in a market with strong fundamentals.
"We are excited to bring SGT into the KBRwyle family," Bradie said. "This is a strong cultural fit. Like KBR, SGT is a people company that operates with integrity and delivers strong results by putting customers and employees at the forefront of everything they do."
KBR expects SGT to become a business unit within KBRwyle and will maintain SGT's current management structure in order to preserve a continuity of services to customer during transition.
"This transaction creates an exciting future," said Dr. Kam Ghaffarian, President and CEO of SGT. "As a combined entity, we will be able to bring powerful capabilities and solutions to the marketplace and broaden our service offerings for our existing customers. The alignment of the strong employee focused cultures and the combined business synergies makes this an ideal situation."
The transaction is expected to be accretive to adjusted earnings per share in the first full year after closing, excluding non-recurring transaction costs. The transaction has been unanimously approved by the KBR Board of Directors and is subject to certain regulatory approvals and customary closing conditions.
About KBR, Inc.
KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Hydrocarbons sectors. KBR employs approximately 34,000 people worldwide (including our joint ventures), with customers in more than 75 countries, and operations in 40 countries, across three synergistic global businesses:
- Government Services, serving government customers globally, including capabilities that cover the full life-cycle of defense, space, aviation and other government programs and missions from research and development, through systems engineering, test and evaluation, program management, to operations, maintenance, and field logistics
- Technology & Consulting, including proprietary technology focused on the monetization of hydrocarbons (especially natural gas and natural gas liquids) in ethylene and petrochemicals; ammonia, nitric acid and fertilizers; oil refining; gasification; oil and gas consulting; integrity management; naval architecture and proprietary hulls; and downstream consulting
- Engineering & Construction, including onshore oil and gas; LNG (liquefaction and regasification)/GTL; oil refining; petrochemicals; chemicals; fertilizers; differentiated EPC; maintenance services (Brown & Root Industrial Services); offshore oil and gas (shallow-water, deep-water, subsea); floating solutions (FPU, FPSO, FLNG & FSRU) and program management
KBR is proud to work with its customers across the globe to provide technology, value-added services, integrated EPC delivery and long term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.
Forward Looking Statement
The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.
KBR's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
SOURCE KBR, Inc.