HOUSTON, Texas — April 19, 2018 — KBR, Inc. (NYSE: KBR) announced today, following Carillion's recent insolvency, it has completed the acquisition of Carillion's interests in Aspire Defence.
Through the Aspire Defence joint venture KBR has supported the UK Ministry of Defence (MOD) on Project Allenby Connaught since 2006, under one of the largest infrastructure Private Finance Initiatives in the UK. Aspire provides high quality design, construction and base support services to the British Army for living and working accommodations.
KBR assumed operational control of the Aspire Defence joint ventures following Carillion's insolvency announcement in January – including the hiring of affected Carillion staff – and has maintained normal business operations without disruption to the delivery of services or performance.
"This acquisition and our commitment to maintain the stability of the project strengthens KBR's long-standing relationship with the UK MOD as a core client," said Stuart Bradie, KBR President and CEO. "KBR has spent more than 12 years delivering this program to re-house soldiers into fit for purpose accommodation and working facilities."
"We look forward to continuing to provide market-leading construction and long-term maintenance services in support of the Army Basing Programme within the Project Allenby Connaught footprint and to provide base support services across Salisbury Plain and Aldershot garrisons," Bradie continued. "This project underpins our long term relationship with the MOD whether at the home base, providing deployed operational support or acting as an integrator of complex defense equipment and systems."
With more than 22 years remaining on the Aspire contract this acquisition provides KBR with enduring, stable and profitable backlog. The impact to KBR's earnings and cash flows has already been included in 2018 Guidance issued on February 23, 2018.
About KBR, Inc.
KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Hydrocarbons sectors. KBR employs approximately 34,000 people worldwide (including our joint ventures), with customers in more than 75 countries, and operations in 40 countries, across three synergistic global businesses:
- Government Services, serving government customers globally, including capabilities that cover the full life-cycle of defense, space, aviation and other government programs and missions from research and development, through systems engineering, test and evaluation, program management, to operations, maintenance, and field logistics
- Technology & Consulting, including proprietary technology focused on the monetization of hydrocarbons (especially natural gas and natural gas liquids) in ethylene and petrochemicals; ammonia, nitric acid and fertilizers; oil refining; gasification; oil and gas consulting; integrity management; naval architecture and proprietary hulls; and downstream consulting
- Engineering & Construction, including onshore oil and gas; LNG (liquefaction and regasification)/GTL; oil refining; petrochemicals; chemicals; fertilizers; differentiated EPC; maintenance services (Brown & Root Industrial Services); offshore oil and gas (shallow-water, deep-water, subsea); floating solutions (FPU, FPSO, FLNG & FSRU) and program management
KBR is proud to work with its customers across the globe to provide technology, value-added services, integrated EPC delivery and long term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.
Forward Looking Statement
The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.
BR's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
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