| URS acquires Washington
Group International Deal involves $2.6 billion in cash and stock By the East Oregonian HERMISTON - Washington Group International has agreed to be acquired by URS Corp., another large engineering, construction and management company. Hal McCune, protocol manager at WGI, said the change would have little impact on workers at the Umatilla Chemical Agent Disposal Facility. "The mission and timelines for safely destroying all the chemical agent stored at the Depot will continue," he said. Company officials in San Francisco and Boise announced they had signed an agreement for the acquisition of Washington Group by URS in a cash and stock transaction valued at approximately $2.6 billion. The transaction will combine two large engineering and construction companies, expand the capabilities of both firms and capitalize on their positions in important high growth sectors, including power, infrastructure and environmental management. The combined company will be called URS Corp. The combined 2006 revenues of the two companies totaled $7.6 billion, fourth highest among U.S. publicly-traded engineering and construction companies. The combined companies have more than 54,000 employees and projects in more than 50 countries. The combined firm will offer engineering, construction, operations and maintenance services for fossil fuel and nuclear power plants globally. Washington Group built and operates the weapons disposal facility near Hermiston and similar plants in Arkansas and Alabama. The combined company will continue in the demilitarization business, but also will have one of the largest teams of nuclear scientists and engineers in the industry, plus a leading nuclear decommissioning and remediation business, enabling it to meet the anticipated resurgence in the nuclear energy market. The combined entity expects to meet growing demand for services on large, complex transportation and water-wastewater projects around the world. URS also expects to be a major contractor to the federal government, including a top five provider of technical services to the U.S. Department of Defense and a top provider of engineering, management and environmental services to the U.S. Department of Energy. "URS has a history of anticipating change in the industry, and this transaction is the next logical step in building for future growth," said Martin M. Koffel, chairman and chief executive officer of URS. Directors of both company unanimously approved the acquisition agreement. The transaction is subject to the approval of Washington Group and URS stockholders, plus regulatory approval. It is expected to be final this fall. |
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