Buyout of BE&K Gives KBR New Presence

KBR is acquiring BE&K for $550 million in cash, ending 35 years of private ownership for BE&K, one of the most prominent open-shop employers in the industry, and giving KBR a big presence in industrial construction again.

KBR, also an open-shop employer, is a much bigger company with 50,000 employees and 2007 revenue of $8.7 billion. It was spun off from Halliburton, the oil and gas services giant, in April, 2007 and KBR shares are traded on the New York Stock Exchange. The company has had about $900 million in cash.

The planned deal is expected to boost KBR’s revenue significantly. Based in Birmingham, Ala., BE&K had revenue and backlog for the year ending March 30, 2008 of about $2 billion each. During the past decade BE&K has greatly expanded its market reach and services.

Chip Schneider, KBR’s vice president and interim chief financial officer, told analysts May 7 that the deal fits the company’s strategy of targeted acquisitions and returns KBR to prominence in industrial construction after the company had been fading in that area. “After seeing our presence wane,” Schneider says clients asked, “‘Are you serious’” about construction.

In announcing the acquisition, KBR’s chief executive, Bill Utt, notes BE&K’s prominence in both design and contracting in pulp and paper, chemicals, industrial process, aerospace and food processing. He points out that BE&K’s offices concentrated along the Southeastern U.S. fit nicely with KBR’s Texas and Gulf of Mexico locations. The acquisition also gives KBR BE&K’s Poland and Russia operations and a foothold in health care and education buildings.

Michael Goodrich, BE&K’s chief executive, is one of five major shareholders. At 63, Goodrich, a 34-year company veteran, says he is remaining with BE&K for the foreseeable future but would not be more specific. He says that Ted Kennedy, one of BE&K’s founders, remains active in the company.

The KBR acquisition will provide financial resources to allow BE&K to better compete on the world stage with Fluor and Bechtel, says Goodrich. A spokesman for BE&K says the company was beginning to hit a wall beyond which it couldn’t expand without new financial resources.

In addition to Birmingham, BE&K has operations in Charlotte, Atlanta, Greenville, S.C., Orlando, Raleigh, N.C., Nashville and Washington, D.C.

Turner Honors 92 Graduates from Turner School

The Miami office Turner Construction Co. Miami office, together with Miami Dade County Public Schools, Miami Dade County Government Small Business Development, Miami Dade College and Florida Regional Minority Business Council, recently awarded certificates of completion to 92 individuals representing 62 construction firms that successfully completed its Turner School of Construction Management Program in the Miami Dade County area.

Turner partnered with the Miami Dade County agencies to offer this 12-week program.

The Turner School of Construction Management is designed to provide these contractors with the tools necessary to pursue work in the private and public sectors.

Upon graduation each of the students receive continuing education units which meet the required contact hours for renewal and can be utilized towards the renewal of their state contractors license.

Moss Golf Tourney Raises $21,000 for Kids

Fort Lauderdale, Fla.-based construction manager Moss & Associates recently hosted 144 golfers for its “First Annual Moss Charity Golf Tournament,” helping to raise more than $21,000 for Kids in Distress.

Funds from the event will help support Kids in Distress emergency shelters and counseling services, which are offered to children and families in crisis at four campuses in Broward County.

McKim & Creed Acquires Brock Design Group

McKim & Creed, a Raleigh, N.C.-based engineering firm, announced it has acquired Brock Design Group, a consulting firm specializing in civil engineering, surveying, land planning and landscape architecture located in Suwanee, Ga.

Beck Group Moves to New Offices

The Beck Group announced it has moved its Eastern division headquarters and Atlanta offices to Buckhead at One Alliance Center.

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