KBR to Acquire Honeywell Technology Solutions Inc.

KBR Inc. announced that it has agreed to acquire Honeywell Technology Solutions Inc. (HTSI) from Honeywell International Inc. for $300 million, or $266 million after adjusting for approximately $34 million in acquired tax benefits.  With annual revenues of approximately $600 million and EBITDA of approximately $42 million, HTSI provides technical and mission support services including logistics, cyber security, and physical security to government clients such as NASA, the DoD, and the US Intelligence Community.  

40 percent of HTSI’s 3,550 employees hold security clearances.  75 percent of HTSI’s contracts are cost reimbursable and the business has current backlog of approximately $900 million ($536 million funded and $364 million unfunded).  HTSI will be integrated into KBRwyle, a subsidiary of KBR that was formed earlier this year with the acquisition of Wyle Inc.  KBR projects $85 million of annual revenue synergies by 2021.

The deal is projected to close during the late third quarter or early fourth quarter of 2016.