KBR (Houston; www.kbr.com) has agreed to enter into two new partnerships with Bernhard Capital Partners (BCP). The first agreement will establish a new, equally owned and managed company, Brown & Root Industrial Services.
KBR’s Industrial Services Americas, part of the Engineering & Construction Business Group, will become part of the company and will continue to offer maintenance services, turnarounds and small capital expenditure projects. The company will also comprise of WINK Engineering, a BCP portfolio company specializing in maintenance engineering design services to the refining, chemical/petrochemical, and bulk storage terminal industries. Brown & Root Industrial Services will be headquartered in Baton Rouge, Louisiana.
In addition to this partnership, EPIC Piping, a BCP portfolio company, plans to acquire KBR’s Canadian pipe fabrication facility. KBR will become a minority limited partner in EPIC Piping and will enter into an alliance agreement that will give KBR access to EPIC’s world class pipe fabrication facilities in Louisiana & Texas.
KBR expects to receive approximately $32 million in net cash proceeds from the two transactions which are expected to close prior to year end.