URS Corp. to buy Washington Group for $2.6 billion

29 May 2007

San Francisco-based URS Corp is acquiring Washington Group International for $2.6 billion, valuing the transaction at $80 per share, a 14 per cent premium over Washington Group''s closing stock price on Friday.

The deal combines two of the nation''s largest engineering and construction firms..

The boards of directors of both companies unanimously approved the deal, which will fetch Washington Group stockholders to $43.80 in cash and .772 shares of URS stock for each Washington Group share.

"URS has a history of anticipating change in the industry, and this transaction is the next logical step in building for future growth," URS chief executive Martin Koffel said in a statement.

URS has 29,500 employees in 20 countries, while Washington Group has 25,000 employees worldwide. The combined company would operate under the name URS Corp., and would have one of the largest teams of nuclear scientists and engineers in the industry and a backlog of projects exceeding $11 billion in more than 50 countries, company officials said.

Koffel will remain CEO of the combined company, and one member of the Washington Group board of directors will serve on the combined company''s board.