Kbr, Inc. · NYSE:KBR
Kbr — Merger or Acquisition (May 2008)
11 slides from Kbr's merger presentation, May 7, 2008
Slide 1: BE&K, Inc. Acquisition
BE&K, Inc. Acquisition Bill Utt – Chairman, President, and CEO Chip Schneider – Vice President, Treasurer and Interim CFO May 7, 2008
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements.” All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements include statements about the benefits of the split-off, the discussions of K
Slide 3: KBR Strategic Objectives
KBR Strategic Objectives Strategic Objectives ¾ Pursue targeted M&A activity to complement organic growth and accelerate implementation of individual business units ¾ Expand Service’s existing operations and capitalize on brand reputation and legacy core competencies: ¾ North American Construction ¾
Slide 4: Transaction Summary
Transaction Summary f KBR entered into a definitive agreement on May 6, 2008 to acquire BE&K for $550 million in cash, subject to any post-closing adjustments f Close of transaction is targeted for July 2008, subject to regulatory approval f Year ended March 30, 2008 revenue approximately $2.0 billi
Slide 5: According to Engineering News-Record....
According to Engineering News-Record…. Ranks in the Top Ten for: ¾ Pulp and Paper contracting ¾ Operations and Maintenance design ¾ Pulp and Paper design ¾ Industrial Process contracting ¾ Chemical plant contracting ¾ Aerospace contracting ¾ Chemical plant design ¾ Food Processing plant contracting
Slide 6: BE&K Principal Locations
BE&K Principal Locations Headquartered in Birmingham Alabama Offices concentrated in the Southeastern US 6
Slide 7: BE&K Engineering and Construction
BE&K Engineering and Construction Engineering Construction f Full service design and engineering firm: f Industrial Services feasibility studies, capital cost estimates, detailed design, staffing solutions, Provides maintenance and reliability technical consulting services, project services worldw
Slide 8: BE&K Buildings Group and Government
BE&K Buildings Group and Government Buildings Group Government f Leading construction services firm f Delivers premier construction and facility focused on Southeast and Mid-Atlantic life-cycle services domestically to the regions U.S. government f Primary Services: project management, f Offers in-h
Slide 9: KBR Plus BE&K Values and Synergies
KBR Plus BE&K Values and Synergies ¾ Dramatically expands KBR’s direct hire construction size, skills, and capabilities with greater than 5,000 employees ¾ Doubles size of Industrial Services with approximately 25 more sites ¾ Provides attractive Southeast US footprint, complementing KBR’s existing
Slide 10: Financial Summary
Financial Summary f Expected 2009 KBR revenue breakdown with 3 business units with greater than 25% of revenue mix f Transaction is anticipated to be GAAP EPS neutral in 2008 and accretive in 2009 and beyond f Transaction is anticipated to be Cash Flow accretive in 2008 and beyond f Revenue and cost
Slide 11: Slide 11