URS to buy Washington Group
20 March 2008
URS, a San Francisco, US-based engineering and design company has announced plans to acquire Washington Group International, a designer and contractor based in Idaho, US. The deal will create a company with annual revenues of about US$ 8.6 billion, a backlog worth US$ 11 billion and 54000 employees, making it the fourth largest construction and engineering company in the US after Bechtel, Fluor and KBR.
The acquisition, which has been recommended to shareholders by both companies' Boards, will be structured as a cash and share acquisition. URS will offier US$ 43.80 in cash and 0.722 shares in URS for each Washington Group share. Based on the closing prices of the two companies' shares on May 25, when the deal was announced, this values Washington group at US$ 80 per share, or US$ 2.6 billion in total, a +14% premium.
URS is one of the world's largest engineering design companies, and is active in defence market as well as construction. It is active in 20 countries around the world, with offices in Europe and the Asia Pacific region, as well as its home of the US. The company employs 29500 people and generated revenues of US$ 4.24 billion. Washington Group is active in 40 states across the US and 30 countries worldwide.