JEC Jacobs Engineering Group Inc

Jacobs Engineering Group Inc. (JEC) recently reported buying of KlingStubbins, a Philadelphia based architectural firm, which was originally formed by renowned architect Vincent Kling. The terms of the transaction were not disclosed as yet

KlingStubbins, with approximately 500 employees in the United States and Asia, provides professional services in planning, architecture, engineering and interiors with a market focus and specialization in Corporate/Commercial, Government, Science and Technology, Higher Education, Mission Critical and Interiors works.

Such specialization is thus expected to enhance Jacob’s capabilities in design, architecture and engineering practice; reinforcing greater foothold in high growth markets, particularly Science and Technology (including higher education, research and development and laboratory research and development) and Mission Critical (intelligence/cyber security and corporate data centers) services.

Moreover, Jacobs will be able to provide KlingStubbins' clients with access to significantly increased capabilities and support while strengthening its overall service offerings to its clients globally. This acquisition is anticipated to allow both parties to further diversify their services and drive greater growth in business

Of late, Jacobs announced a pair of new contracts -- one with Germany-based OXEA GmbH and one with the Department of Justice, Office of Justice Programs (OJP).

The deal with OXEA involves procurement support and support services during construction for a new ester production plant in Germany; whereas that with the Justice Department is a subcontract for IT help desk operations and maintenance service.

The contract value of OXEA deal, which is expected to come on stream in 2012, has not yet been disclosed; while the subcontract with the Department of Justiceis valued at over $9 million over a period of five years.

Jacobs Engineering Group Inc. provides services to a variety of industrial, commercial and government clients across a global network. The company directly competes with its peers, such as Fluor Corporation (FLR) and Foster Wheeler AG (FWLT).

We currently hold a Neutral recommendation on the stock. Jacobs has a Zacks #3 Rank, implying a short-term (1-3 months) Hold rating.

 
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