- In a move to expand its federal work, URS Corp. has agreed
to acquire EG&G Technical Services, in a deal that URS values at $500
million. Under terms of the transaction, announced July 17, EG&G's
owner, the Carlyle Group, a Washington, D.C., investment company, will
receive $165 million in cash, about $130 million in URS common stock and
$40 million in a new series of convertible preferred stock.
- If the deal is completed, URS says EG&G stockholders
will have about 23% of URS's common stock. URS also will retire about $165
million in EG&G debt.
- EG&G would be a wholly owned subsidiary of San Francisco-based
URS. George R. Melton, EG&G's president and CEO, would continue as
president of the EG&G unit.
- The combined companies would have about $3.2 billion
in revenue and $90 million in net income, on a pro forma basis. About 40%
of the revenue would come from the federal government.
- Martin M. Koffel, URS's chairman and CEO, says the acquisition
"enhances our presence as a key federal contractor and positions us
especially well in the rapidly expanding market for homeland defense services
including emergency preparedness, force protection and anti-terrorism projects."
- URS says it has financing commitments for $900 million
to carry out the deal.
- Carlyle's chairman is former Defense Secretary Frank
Carlucci; James Baker, former Secretary of State and of the Treasury, is