Washington Group approve URS buyout

Source: Exec Digital USA

Date :16/11/2007 08:41:37

Washington Group International shareholders approved a $3.1 billion buyout Thursday by rival URS Corp. to create the nation's biggest engineering and construction company.

The closing of the acquisition follows approvals by URS and Washington Group stockholders, allowing the San Francisco-based company to take control late Thursday.

The cash-and-stock deal was approved by 53 percent of Washington Group's outstanding shareholders after speculation that many shareholders believed the offer was too low.

Under the deal, Washington Group will operate as the Washington Division of URS.

Steven Hanks, former Chief Executive Officer of Washington Group, has been named President of the Washington Division and appointed to the URS Corporation Board of Directors.

Unrivaled potential

WGI Chief Executive Officer Steve Hanks said the takeover by URS would create a company of 55,000 employees with more than $8 billion in annual revenue and unrivaled potential to win government and private contracts globally.

URS said the acquisition cost $3.1 billion, down from a $3.2 billion estimate made last week after raising its offer to gain support from Washington’s shareholders.

The acquisition will allow URS to offer a broad range of engineering and construction services to clients in markets such as transportation, facilities, environmental, homeland security, installations and logistics, and defense systems.

The combined company will also be a major contractor to the federal government.

November 16, 2007