Consulting and technical services
On January 12, 2016, KBR (KBR) acquired three of Chematur Technologies’ engineering subsidiaries—Weatherly, Plinke, and Chematur Ecoplanning Oy—for $24.5 million. Chematur is a Swedish chemical engineering company specializing in bioethylene technologies. It is owned by China-based aniline trader and producer Connell Chemical Industry.
Through subsidiary Brown & Root Industrial Services, KBR acquired MEI Group, a turnaround service provider in the hydrocarbon industry, for an undisclosed amount on November 15, 2016.
Brown & Root Industrial Services is a 50-50 joint venture between KBR and private equity company Bernhard Capital Partners. It was formed in September 2015. KBR’s US industrial service business was transferred to the Brown & Root joint venture.
Since 3Q15, KBR has held a minority stake in EPIC Piping, a pipe fabricator in the oil and gas industry. The majority of KBR’s Canadian piping business was transferred to EPIC. Bernhard Capital Partners owns a controlling stake in EPIC.
Peer (XLI) Chicago Bridge & Iron (CBI) is planning to divest its technology business. CBI and KBR now compete in the engineering and construction space, along with Fluor (FLR) and Jacobs Engineering (JEC). Continue to the next part of this series to learn more about the specialties of each of KBR’s subsidiaries.