Construction and engineering services provider,
Jacobs Engineering Group Inc.
), failed to cheer markets despite the acquisitions made by its
joint venture (JV) with the South African company, Matasis
Investment Holdings (Proprietary) Limited. The JV - Jacobs
Matasis (Proprietary) Limited - acquired Cape Town, SA-based,
Ilitha Projects and Ilitha Staffing. However, no visible movement
was noticed in the stock price subsequent to the
Ilitha Projects engages in providing project management and
engineering, procurement and construction management services to
its clients in the nuclear, oil and gas, marine mining and
metals, chemicals and power markets. Ilitha Staffing, on the
other hand, deals with providing technical contract staff
sourcing and management services to its clients.
The acquisition is a strategic fit for the JV as it
facilitates the company's growth in South Africa and more
specifically in its targeted Sub-Saharan African market.
Additionally, on the same day, Jacobs won a contract from
England's Environment Agency. The value of the Water and
Environmental Management framework contract has not been
disclosed. The four-year contract has an extendable option of two
Per the contract, Jacobs will be responsible for mapping and
data management, strategic flood modeling, optioneering, economic
appraisal and design.
Jacobs has been working with the Environment Agency for over
10 years, in the Agency's flood and coastal risk management
program. In Sep 2009, the company received a two-year extension
on the National Engineering and Environmental Consultancy
Agreement framework from the Agency.
Jacobs currently carries a Zacks Rank #2 (Buy). Other stocks
worth a look in the industry are
Michael Baker Corp.
Foster Wheeler AG
). While Michael Baker carries a Zacks Rank #1 (Strong Buy),
Foster Wheeler and KBR carry a Zacks Rank #2 (Buy).
BAKER (MICHAEL) (BKR): Free Stock Analysis
FOSTER WHELR AG (FWLT): Free Stock Analysis
JACOBS ENGIN GR (JEC): Free Stock Analysis
KBR INC (KBR): Free Stock Analysis Report
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