Shares of KBR Inc. (KBR) are rising over 7% Wednesday morning, after the company agreed to buy Centauri LLC from Arlington Capital Partners for about $800 million in cash.
The deal will significantly expand KBR’s military space, defense modernization and cyber solutions portfolio. It builds on KBR’s previous strategic acquisitions and successful integrations of Wyle, Honeywell Technology Solutions and Stinger Ghaffarian Technologies, and creates a combined platform with extensive expertise in civil, military, intelligence and commercial space solutions.
KBR said it expects to fund the purchase price of about $800 million with about $300 million in cash on hand and $500 million of debt. Centauri is expected to be immediately accretive to earnings after transaction costs.
KBR has been trading in the range of $12.00 – $31.92 for the past one year, and is currently trading at $24.35, up $1.77 or 7.86% in regular trading session.
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