KBR to acquire Honeywell's HTSI

KBR, Inc. (NYSE: KBR) has entered into a definitive agreement to acquire Honeywell Technology Solutions, Inc. (HTSI), a technical and mission support services organization providing mission-critical services and customized solutions to US government agencies, the company said.

The company said the acquisition provides further expansion into complementary market segments for US government agencies and increases KBR´s government services.

Through its three business lines: space, mission support, and security solutions, HTSI offers services throughout the satellite mission lifecycle, military equipment prepositioning and logistics services, and cyber security capabilities to protect customers´ digital information and physical security. HTSI´s primary customers include NASA, the US Department of Defense, and the US intelligence community.

HTSI will be integrated into KBRwyle, a wholly owned subsidiary of KBR, to create a total capability government services organization that spans the spectrum of the life-cycle of aerospace and defense programs from research and development, through test and evaluation, to operations, maintenance and field logistics.

The transaction price to KBR is USD266 million, after adjustments for approximately USD34 million of acquired tax benefits,including net working capital of HTSI. The transaction will initially be funded through KBR´s existing line of credit facility.

KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries, employing approximately 25,800 people worldwide with customers in more than 80 countries and operations in 40 countries.