San Francisco-based engineering and construction company URS Corp. is buying rival Washington Group International for $2.6 billion.
In the transaction, Washington Group shareholders will get $43.80 in cash and 0.772 shares of URS stock for each Washington Group share, which valued at $69.97 per share or a 14 percent premium over Washington Group’s closing stock price on Friday. The board of directors of the Washington Group has approved the deal and need shareholders’ support and regulators’ approval.
The deal will expand UBR’s presence in the world, and convert it to the nation’s largest engineering and construction firms. URS has 29,500 employees in 20 countries, while Washington Group has 25,000 employees worldwide.
The deal will allow URS to expand its business managing nuclear power and infrastructure projects.
The combined company would operate under the name URS Corp and URS Chief Executive Koffel will head it.
Combined firm will have one of the largest teams of nuclear scientists and engineers in the industry and merging of projects exceeding $11 billion in more than 50 countries. After successful merger, which aims to complete in mid of the year, expecting to reduce its costs by $55 million.
URS has a history of acquiring other companies. In 1995, it acquires fellow design engineering firm Greiner Engineering Inc. URS chief executive Martin Koffel said
URS has a history of anticipating change in the industry, and this transaction is the next logical step in building for future growth
Image: itsmn
Via: washingtonpost
