Recently, URS Corporation (URS) acquired Flint Energy Services Ltd. for C$25.00 per share in cash and approximately C$1.24 billion (US$1.24 billion) in total. The company entered into the agreement in February 2012.
The acquisition expands URS’ presence in the oil and gas sector. The North American unconventional oil and gas segments have been growing and with this acquisition URS will derive significant benefits in these segments. The company will now be able to provide a comprehensive set of engineering, procurement and construction services to its energy sector clients.
Above 10,000 employees from Flint have been added to URS and a network of approximately 80 locations in North America. The network supports oil, oil sands and gas producing companies in regions of Western Canada and in the Southwest, Appalachian and Rocky Mountain regions of the United States.
Flint has been added as the new Oil & Gas division of URS and this new division of URS will be based in Calgary, Alberta. Flint's former President and CEO, W.J. (Bill) Lingard, will be the division's president. URS' 2012 earnings will include the positive effect of the acquisition.
URS Corp. provides engineering, construction and technical services. The company offers a broad range of program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to public agencies and private sector clients globally.
It is also a major U.S. federal government contractor in the areas of systems engineering and technical assistance, and operations and maintenance. Major competitors of URS are AECOM Technology Corporation (ACM), Fluor Corporation (FLR) and KBR Inc. (KBR).
We currently maintain our Neutral rating on URS Corp. with a Zacks #3 Rank (short-term Neutral recommendation) over the next one-to-three months.
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