Engineering and planning firm URS Corporation agreed to acquire Washington Group International, Inc., an engineering and construction company, in a cash and stock transaction worth approximately $2.6 billion. The companies’ combined 2006 revenues would have been $7.6 billion, the fourth highest among U.S. publicly traded engineering and construction companies. Based on previously issued guidance, the companies estimate combined 2007 revenues of approximately $8.6 billion and a total backlog exceeding $11 billion, as of March 31, 2007. The combined company, called URS Corporation, has projects in more than 50 countries and more than 54,000 employees.
"URS has a history of anticipating change in the industry, and this transaction is the next logical step in building for future growth," says Martin M. Koffel, chairman and CEO of URS. "Through this combination, both companies will be better positioned to capture growth from favorable trends across the engineering and construction sectors, including the increased investment in infrastructure projects, the focus on emissions reduction and energy independence in the power market, and the increased use of outsourcing by federal agencies. Together, we will have the resources to meet increasing client demand for a single firm that can provide the full range of engineering and construction services required for large, complex projects in these high-growth markets, both in the United States and abroad."
According to Stephen G. Hanks, CEO of Washington Group, employees of both companies will benefit by being part of a global organization with a diverse portfolio of businesses and services and broad career opportunities.
Additional information about the deal is available online at www.urs-wng.com.