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Washington Group bought by URS Corporation

Tuesday, 29 May 2007

The boards of both companies have unanimously agreed to URS Corporation's purchase of Washington Group, resulting in a new infrastructure, energy and environment company boasting an order book worth over $11 billion.

The cash and stock transaction, valued at approximately $2.6 billion, would create an engineering giant with combined revenues of $8.6 billion in 2007. A URS statement said the new company - still called URS Corporation - would "offer a full range of engineering, construction, operations and maintenance services for both fossil fuel and nuclear power plants globally."

In addition, it would be well placed to win major contracts from the US government: URS has existing ties with the Department of Defense, while Washington Group has held many environmental management contracts with the Department of Energy.

Martin Koffel, URS' CEO, said the purchase of Washington Group was "the next logical step in building for future growth." He will remain as CEO of the new URS. The URS statement said both companies would be better positioned to benefit from "favourable trends" such as a "focus on emissions reductions and energy indepenedence in the power market."

URS expects to achieve pre-tax savings of $50-55 million in 2008 from synergies created by the purchase.

Further information

URS Corporation
Washington Group