KBR has released a statement claiming that it has completed the acquisition of Wyle Inc. for US$570 million, after adjustments for approximately US$30 million of acquired tax benefits, and subject to other customary adjustments, including for net working capital, net cash and indebtedness of Wyle. KBR’s existing line of credit facility and approximately US$200 million in cash were used to fund the acquisition.
Wyle will now operate under the new name, ‘KBRwyle’, and will become a KBR business unit within KBR’s Government Services business segment. It will maintain a significant portion of its current structure in order to ensure continuity.
The President and CEO of KBR, Stuart Bradie, said: “Today we are proud to welcome Wyle to KBR.
"KBRwyle fits perfectly with our strategy to expand KBR's global Government Services offerings, moving the business towards the high growth, more specialised, technology and science driven sources of long-term annuity type revenues with greater differentiation and higher margins. As our Government Services markets expand we are seeing increasing synergy with our hydrocarbons business, with people and services moving between divisions, further enhancing the value proposition of the acquisition.
"KBR and Wyle share a proud legacy of innovation and performance for which all of our now combined 25 800 employees can be proud. It is with great pleasure that we unite these two companies to create the equivalent of a global US$2 billion Government Services organisation with full service capabilities drawing on the best in class capabilities of both organisations.”
Edited from press release by David Rowlands
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/05072016/kbr-completes-acquisition-of-wyle-2699/