KBR Acquires Chematur Engineering Subsidiaries Ecoplanning, Plinke and Weatherly
HOUSTON, Jan. 13, 2016 (GLOBE NEWSWIRE) -- KBR, Inc. (NYSE:KBR) announced today it has acquired Weatherly Inc. (Weatherly), Plinke GmbH (Plinke), and Chematur Ecoplanning Oy (Ecoplanning) from Chematur Technologies AB, owned by Connell Chemical.
Weatherly is a North American-based company with extensive experience providing nitric acid and ammonium nitrate proprietary technologies and services to the fertilizer market. For more than five decades, Weatherly has designed, engineered and constructed these integral processes in fertilizer complexes worldwide. With the acquisition of Weatherly, KBR is uniquely positioned as a top global provider of fertilizer technologies and life cycle services offerings combined with market-leading ammonia solutions. Weatherly has an installed base of 80 nitric acid plants worldwide with approximately 30% market share of installed plants.
Plinke is a German-based company specializing in proprietary technology and specialist equipment for the purification and concentration of inorganic acids used or produced in hydrocarbon processing facilities worldwide. Ecoplanning, based in Finland, offers proprietary evaporation and crystallization technologies and specialist equipment for weak acid and base solutions. Plinke and Ecoplanning's plants and solutions expand KBR's technology portfolio and can be delivered across KBR's Refining, Petrochemical and Fertilizer platforms and provide opportunities for KBR to complement key value-added services to an expanded base of clients globally.
"Through these acquisitions, KBR can more fully serve our clients' fertilizer complex solution requirements, as well as expanding our consulting and technical services to improve plant performance throughout the plant's lifecycle. KBR's ammonia and Weatherly's fertilizer capabilities result in a powerful combination of industry-leading technologies and Plinke and Ecoplanning enhance the scope pf KBR's technology solutions across expanded platforms. KBR sees great opportunity to extend these technologies outside North America to new customers and in revamping units of the existing customer base globally, leveraging KBR's global sales team and EPC capabilities," said Stuart Bradie, President and CEO of KBR.
"We chose these companies, all with over 50 years of experience and hundreds of plants worldwide, based on their track record of superior performance, market reputation, unique technologies, and proven delivery capability to augment KBR's existing technologies and extend our scope in markets we now serve and beyond. We are pleased to add these technologies and capabilities, as well as the talented staff who will manage them for us within our global portfolio," continued Bradie.
The transaction price is $24.5M, subject to working capital adjustments.
About KBR, Inc.
KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries, employing approximately 25,000 people worldwide with customers in more than 70 countries and operations in 40 countries across three distinct global businesses:
Technology & Consulting, including proprietary technology in refining, ethylene, ammonia and fertilizers, and gasification; and niche consulting and know-how through subsidiaries Granherne, Energo and GVA
Government Services, including program management and long term annuity contracts
KBR is proud to work with its customers across the globe to provide technology, value-added consulting services, integrated EPC delivery and Long Term Industrial Services to ensure consistent project delivery with predictable results. At KBR, we deliver.
Chematur Technoloiges AB is a Chemical Engineering company that possesses polyurethane, hydrogen peroxide and bioethanol/bioethylene technologies. Chematur is based in Karlskoga, Sweden.
About Connell Chemical
Connell Chemical Industry Limited Liability Company is the ultimate parent of Chematur Technologies AB. Connell is a world-leading aniline trader and producer based in Jilin, P.R. of China.
Forward Looking Statement
The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.
KBR's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
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