Construction services company URS Corp. has completed the acquisition of Washington Group International Inc. for a total purchase price of $3.1 billion, following approvals of both companies’ stockholders.
Under terms of the deal, which was first announced in June, Washington Group shareholders are receiving $43.80 in cash and 0.900 shares of URS common stock for each Washington Group share they own. URS stockholders are retaining the shares they held prior to the transaction. (HNN 6/6/07)
ï¿½With the addition of Washington Group’s complementary engineering and construction services, URS becomes one of the few fully integrated engineering, construction, and technical services firms capable of serving every phase of a project, from initial planning, engineering, and construction of a project, to operations and maintenance,ï¿½ URS Chairman Martin Koffel said.
Both companies have dam and power construction work in their pedigrees. Most notably, Washington Group’s founding company, Morrison-Knudsen, was a key member of the consortium that built 2,078.8-MW Hoover Dam on the Colorado River.
In addition to overseeing massive construction projects such as the development of transportation, water and wastewater systems around the world, the combined company also will offer engineering, construction, and maintenance services for fossil fuel and nuclear power plants.
The combined company is to be called URS Corp., and be headed by Koffel. Together, the companies would have 2007 revenues of about $8.6 billion, projects in more than 50 countries, and more than 54,000 employees.
The San Francisco-based URS said it had commitments from Wells Fargo and Morgan Stanley to provide debt financing for the deal. Morgan Stanley and UBS AG advised URS on the deal, while Goldman Sachs Group Inc. advised the Boise, Idaho-based Washington Group.