KBR To Acquire Government Services Company Wyle For $570 Mln - Quick Facts

(RTTNews) - KBR, Inc. (KBR), an engineering, procurement, construction and services company, announced Monday that it has entered into a definitive agreement to acquire Wyle, Inc., a provider of specialized engineering, and professional, scientific and technical services primarily to the U.S. federal government.

The transaction price is $570 million, after adjustments for approximately $30 million of acquired tax benefits.

The transaction is expected to be immediately accretive to KBR's earnings per share and will initially be funded by utilizing KBR's existing line of credit facility and approximately $200 million in cash.

The transaction has been unanimously approved by the KBR Board of Directors and is subject to certain regulatory approvals and customary closing conditions. The closing is expected to occur in the third quarter of 2016.

Wyle will become a KBR business unit within KBR's Government Services segment and will maintain much of its current structure to ensure business continuity.

The company said the deal would create a full service, global Government Services organization executing $2 billion worth of contracts annually in a growing market.

Wyle, which employs 3,800 professionals, delivers an array of cutting edge, custom solutions that drive mission success for customers in the U.S. Department of Defense, NASA and other federal agencies.

As of year-end 2015, Wyle's funded backlog was $440 million with an additional $1.1 billion of orders not yet funded, but expected.