Kbr, Inc. · NYSE:KBR
Kbr — Merger or Acquisition (August 2016)
11 slides from Kbr's merger presentation, Aug 12, 2016
Slide 1: Acquisition of HTSI
Acquisition of HTSI August 12, 2016
Slide 2: Forward-Looking Statements
Forward‐Looking Statements This presentation contains “forward‐looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward‐looking statements include statements regarding our plans, objectives, goals, strat
Slide 3: Transaction Overview
Transaction Overview • KBR signed a definitive agreement to acquire 100% of Honeywell Technology Solutions, Inc. (HTSI) for $266 million (after adjusting for ~$34 million of acquired tax benefits) • Strategic and complementary company that fits well with KBRwyle’s specialized technical services and
Slide 4: KBR Executing on Strategy
KBR Executing on Strategy Ongoing Ongoing Ongoing Reduce Expand Broaden Continue Re‐focus Restructure Expand Costs & B&R Industrial Technology Balanced Growth & Streamline Government Achieve Services Portfolio / Capital Strategy Operating Services Margin Model EPC Pull‐ Allocation Segments Offering
Slide 5: More Balanced Portfolio: GS and Hydrocarbons
More Balanced Portfolio: GS and Hydrocarbons Share of 2016 Pro Forma Revenue Govt Services E&C, Govt Other Services E&C, Other KBR Excl KBR Incl Wyle, HTSI Wyle, HTSI T&C (annualized) T&C High proportion of earnings driven by smaller, recurring and annuity‐type contracts across GS, T&C and E&C. Cons
Slide 6: HTSI Overview
HTSI Overview A leading professional, technical and mission support services organization providing an array of mission‐ critical services and customized solutions globally primarily to U.S. government agencies Space Mission Support Security Solutions Satellite mission lifecycle services including p
Slide 7: Compelling Complement to KBR's Platform
Compelling Complement to KBR’s Platform • Grows U.S. Federal CONUS (Contiguous U.S.) footprint and capabilities: – Longer‐term, high‐value contracts provide a base of recurring, annuity‐type revenue – Value‐added services can provide KBR with stronger, broader relationships within NASA, Army, Navy,
Slide 8: Expands Program Life-Cycle Services Offering
Expands Program Life‐Cycle Services Offering • Provides sustaining, life‐ cycle services that are value‐added for clients and enable long‐term, continual engagement with clients • Expands offering across the Armed Forces, classified work and other Government agencies • Leverages and grows GS’s globa
Slide 9: Meaningful Synergy Opportunities
Meaningful Synergy Opportunities Cost Synergies Revenue Synergies • Significantly improve HTSI’s • NASA expansion competitive cost position through • Asset Management and reduced corporate cost allocations Prepositioned Stock business ‒ Historical pension to remain with growth ‐ Growth in broader Se
Slide 10: Transaction Summary
Transaction Summary Summary • Purchase price of $266M (after adjusting for ~$34M in acquired tax benefits) • 6.3x adjusted TTM EBITDA • Funding under existing credit facility • Expected to be accretive in 2017 ~$0.06 EPS (inclusive of transition costs) and ~$0.15‐$0.20 EPS in 2018 Leadership and • K
Slide 11: Conclusion
Conclusion • Strategic and complementary acquisition that fits well with KBRwyle and KBR’s traditional government services franchise to create GS segment executing ~$2.5B worth of contracts annually in a growing market • Expands offering across the Armed Forces, classified work and other government