A new force has joined the top tier of the construction and engineering industry in the United States with Morrison Knudsen Corporation’s purchase of the Raytheon Engineers & Constructors (RE&C) business of Raytheon Company. The combined company will be named Washington Group International, Inc., a firm with more than $5 billion in annual revenues and a backlog of some $6.6 billion.
The acquisition, marking one of the largest in the engineering and construction industry, “combines the engineering and project execution skills of two world-class organizations,” says Dennis R. Washington, chairman and chief executive officer of the new company. He adds, “Not only does our combined company rank among the overall industry leaders in the United States, but we have leading market-share positions in fast-growing specific markets such as infrastructure, power, industrial-process and government services.”
The new company is composed of five full-service operating units: Power, Infrastructure & Mining, Government, Industrial/Process, and Petroleum & Chemicals. With more than 38,000 employees at work in more than 40 countries, the company serves the energy, environmental, government, heavy-civil, industrial, mining, nuclear-services, operations and maintenance, petroleum and chemicals, process, pulp and paper, transportation, and water-resources markets as an engineer, constructor, and program manager.
Under the terms of the transaction, the company paid approximately $53 million in cash and assumed liabilities of approximately $450 million. In addition, Raytheon Company will keep financial responsibility for four nearly completed projects and partially indemnify MK on the completion of another existing project.
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