Houston-based energy services giant KBR Inc. (NYSE: KBR) announced Wednesday two deals with Bernhard Capital Partners, a Louisiana-based investment firm.
KBR is expected to receive $32 million in net cash from the combined deals that are projected to close later this year.
In the first deal, a new company will be created from KBR’s Industrial Services Americas Group and Wink Engineering, which will be called Brown & Root Industrial Services. The name re-establishes an old powerhouse brand that was once a US leading industrial services provider. Brown & Root headquarters will be in Baton Rouge, with a key corporate office in Houston.
Andy Dupuy, CEO of Brown & Root states, “KBR had this piece of business that BCP invested in purchasing and we rolled the Wink organization into it to create this new entity,” he goes on to add, “We were happy to bring back the Brown & Root name. It has a very strong legacy and a very good reputation.”
The second deal includes Bernhard acquiring KBR’s Canadian pipe fabrication facility, Epic piping.
According to KBR President and CEO Stuart Bradie, “The partnership provides an opportunity for sustainable growth and marks yet another step in reshaping KBR to be a more market-responsive and efficient company, focused on our customers and shareholders.”
Back in December, Bradie announced plans for restructuring KBR, which included a deal to sell off assets as part of those plans.
Although KBR will spend between $800 million to $1 billion implementing the restructure, Bradie stated it will save at least $200 million in annual operating cost starting in 2016.