Jacobs Buys MARMAC, Wins QGC Deal - Analyst Blog

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Engineering and construction company, Jacobs Engineering Group Inc. ( JEC ), recently announced the acquisition of Costa Mesa, CA-based, privately-owned MARMAC Field Services, Inc. The purchase price was not disclosed.

MARMAC is a women-owned corporation that has been serving the oil and gas industry since the 1970s, mainly in the Western U.S. Over the years, the company has gained expertise in projects including Process & Related Systems, Environmental Engineering, Pipelines - Liquid and Natural Gas, Measuring Stations, Terminals, Pipeline & Integrity Analysis, Land and Right-of-Way Services, to name a few.

Like Jacobs, MARMAC too believes in maintaining strong relationship with its clients. The company generates over 85% of the revenues through long-term relationship with its customers. Such high percentage of repeat business signifies MARMAC's client satisfaction rate.

The acquisition will not only let the company leverage on MARMAC's geographical reach but also enhance Jacobs' capabilities to serve the utility and gas industry better.

Additionally, on the same day, Jacobs won a contract from QGC, part of the United Kingdom based BG Group plc. The value of the contract remained undisclosed. QGC has been promoting the conversion of coal seam gas (CSG) to liquefied natural gas (LNG) in Australia.

Per the contract, Jacobs will provide concept study and pre-front-end engineering and design services to QGC. Also, the company will offer its services to enhance the transport system carrying produced gas to the LNG production facilities. The contract will enable QGC to utilize Jacobs' global experience on CSG projects in the Australian region.

Jacobs currently carries a Zacks Rank #3 (Hold). Other better-ranked stocks in the industry include VSE Corp. ( VSEC ), KB Home ( KBH ) and M/I Homes, Inc. ( MHO ). While VSE Corp. carries a Zacks Rank #1 (Strong Buy), KB Home and M/I Homes hold a Zacks Rank #2 (Buy).



JACOBS ENGIN GR (JEC): Free Stock Analysis Report

KB HOME (KBH): Free Stock Analysis Report

M/I HOMES INC (MHO): Free Stock Analysis Report

VSE CORP (VSEC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CSG , JEC , KBH , LNG , MHO

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