Dive Brief:
- Houston engineering and construction firm KBR has announced plans to sell its transportation, water/wastewater and aviation division, Infrastructure Americas, to design firm Stantec for $19 million, MarketWatch reported.
- The sale is part of KBR’s restructuring plan to narrow the company’s focus to hydrocarbons and international government services.
- KBR has already sold its building division, is exiting work with power plants, and created a jointly owned subsidiary with Bernhard Capital Partners for its construction division.
Dive Insight:
The KBR restructuring effort began when CEO Stuart Bradie, who came on board in June 2014, announced his plan to reduce the number of divisions in the company from 16 to five. "We are pleased to continue the business transformation we set out to accomplish last year and selling the Infrastructure Americas division is an important part of that strategy," Bradie said in a statement. "This represents another step in our efforts to make KBR more streamlined, customer-focused, and cost effective."
The company's positive third-quarter earnings, announced this week, offer a sign the restructuring effort is working. So far, according to the Houston Chronicle, KBR has slashed $150 million of its $200 million goal, which it hopes to reach by the end of 2016.
Infrastructure Americas' business is focused in the Gulf Coast regions of Texas and Alabama, and, according to Stantec CEO Bob Gomes, will supplement Stantec's presence in those areas with a significant inventory of ongoing and upcoming projects. Projects include design-build highway projects in Texas, engineering and design projects in Alabama, program management services for the Houston Airport System and construction services for the San Jacinto Water Authority.
"One of the strongest opportunities for growth in North America is within the transportation and infrastructure markets, particularly in Texas," Gomes said.
