KBR Finalizes Share Acquisition in M.W. Kellogg
KBR has completed the acquisition of the 44.94 percent share interest in M.W. Kellogg (MWKL) previously held by JGC Corporation. With the completion of the transaction, MWKL, which was previously an affiliate of both companies since 1992, is again a wholly-owned KBR subsidiary. The Agreement to enter into the transaction was previously announced on December 20, 2010. The purchase price was £106.6 million (approximately US $165 million), subject to certain post-closing adjustments.
MWKL, which has operated for over 60 years in the UK, will continue its operations in Greenford, UK. The organization will complement KBR's existing Leatherhead operations, which jointly will serve as the company's London Center of Operations, creating one of the largest engineering and construction organizations in the UK.
"We are pleased today to fully integrate MWKL back into the KBR family. The organization has played a key role in defining KBR's rich legacy in the LNG and other hydrocarbons markets," said William P. Utt, KBR Chairman, President and CEO. "The opportunity to consolidate our ownership of MWKL fits KBR's long-term strategy to enhance the range, flexibility and efficiency of KBR's LNG and hydrocarbons offerings to our customers."