Foster Wheeler AG
) recently announced that it has acquired Mexican engineering
company NorthAm Engineering S.A. DE CV for an undisclosed
The acquisition of NorthAm is a strategic move by Foster
Wheeler to expand its operations in the growing Mexican market.
Foster Wheeler intends to include the business into its Global
Engineering and Construction segment. This segment recently has
been receiving a lot of contracts in the areas of front-end
engineering and development. Now with NorthAm on board, Foster
Wheeler intends to widen its geographic presence.
NorthAm is one of the leading Mexican engineering and project
management companies. The company has its main operations in
Mexico and has a strong track record in upstream, offshore and
onshore, downstream and power projects.
Foster Wheeler has more than 60 years of experience in
designing steam generator product range. Foster's Global
Engineering & Construction Group provides engineering,
project management and construction management services, and
purchases equipment, materials and services from third-party
suppliers and contractors.
In the last reported quarter, Global Engineering and
Construction group's operating revenue was $587.9 million. The
orders mainly consist of many small and medium-sized contracts.
The segment ended the quarter with a backlog in future revenues
of $2.7 billion. Recently, this segment received several
contracts such as process design package for Moscow refinery's
crude and vacuum distillation units and the gas plant.
Foster Wheeler currently has a Zacks Rank #3 (Hold). Some
other stocks which are worth a look at the moment are
Orion Marine Group Inc
Primoris Services Corporation
Quanta Services Corporation
). All three carry a Zacks Rank #2 (Buy).
FOSTER WHELR AG (FWLT): Free Stock Analysis
ORION MARINE GP (ORN): Free Stock Analysis
PRIMORIS SERVCS (PRIM): Free Stock Analysis
QUANTA SERVICES (PWR): Free Stock Analysis
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