Acquisition Expands Growth Opportunities in the Oil & Gas Market Nationally
LOWELL, MA–(Marketwired – Oct 5, 2015) – TRC Companies, Inc. (NYSE: TRR), a recognized leader in engineering, consulting and construction management services to theenergy, environmental and infrastructure markets, announced today that it has entered into an agreement to acquire the Professional Services business segment of Willbros Group (NYSE: WG) for $130 million in an all-cash transaction. The transaction is subject to customary closing conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and is expected to close during the second quarter of TRC’s fiscal 2016. The transaction does not require a vote of the stockholders of Willbros Group or TRC.
Headquartered in Tulsa, Oklahoma, Professional Services has approximately 850 employees in nine offices nationwide. It has a premier reputation for providing a wide array of innovative engineering, EPC/EPCM, field solutions and integrity services to the oil and gas transmission and midstream market, as well as at government facilities. The segment’s 2014 gross revenue was approximately $209 million, and TRC expects the acquisition to be accretive to earnings (excluding transaction fees and integration expenses) during fiscal 2017.
“TRC is a national leader in environmental permitting of pipelines,” said TRC Chairman and Chief Executive Officer Chris Vincze. “The addition of Professional Services to our robust platform will allow us to provide enhanced integrated services to our combined client base. We believe the long-term outlook for the pipeline industry is strong, especially with respect to midstream activities. Furthermore, the transition of power generation to natural gas; potential exportation of domestically produced oil and gas; and the need to assess, upgrade and repair U.S. pipeline assets will provide new opportunities to the combined organization. With this acquisition, TRC will be uniquely positioned to deliver end-to-end solutions in both the Power and Oil and Gas markets.”
“We are excited to be joining a dynamic company like TRC,” said Edward Wiegele, President of Professional Services. “TRC’s national reputation, established presence in the pipeline industry and strong financial position, combined with our technical capabilities, talented employees and client base, will create a company that can address all phases of the pipeline and facility project life cycle.”
Upon closing, Professional Services will become a fourth TRC operating segment known as “Pipeline Services,” led by Mr. Wiegele.
A pioneer in groundbreaking scientific and engineering developments since the 1960s, TRC is a national engineering, environmental consulting and construction management firm that provides integrated services to the energy, environmental and infrastructure markets. TRC serves a broad range of clients in government and industry, implementing complex projects from initial concept to delivery and operation. TRC delivers results that enable clients to achieve success in a complex and changing world. For more information and updates from the Company, visit TRC’s website at www.TRCsolutions.com and follow TRC on Twitter and StockTwits at @TRC_Companies and on LinkedIn.