KBR Subsidiary Expands Turnaround, Specialty Welding, Construction and Fabrication Service Capabilities

KBR, Inc. announced today that its subsidiary, Brown & Root Industrial Services, LLC, a leading provider of engineering, construction, and reliability-driven maintenance solutions, has acquired the MEI Group, LLC (MEI), a full-service turnaround specialist for industrial facilities.

Headquartered in White Castle, Louisiana, with more than 1,300 employees throughout the U.S. Gulf Coast region, MEI is a premier provider of turnaround, specialty, and construction related services to the refinery, petrochemical and fertilizer markets. With the acquisition of MEI, Brown & Root Industrial Services will grow to more than 8,500 employees across 31 locations nationwide, significantly expanding its turnaround, specialty welding, construction, and fabrication services.

"In 2015 we rebranded our operating expenditure facing business as 'Brown & Root.' Together with our partner we have added over 2000 personnel and have expanded our capabilities in brown field engineering & construction, scaffolding and heat tracing. The addition of MEI's resources and expertise to our industrial and maintenance services offering finalizes our build out of capabilities and enables Brown & Root to deliver a complete service offering spanning the full spectrum of requirements for the operating customers we serve," said Stuart Bradie, KBR President and CEO.

"As part of our strategic plan, we have sought to capitalize on opportunities for earnings driven by lower-risk, smaller, recurring and annuity-type contracts across all business segments. Through this acquisition we build on opportunities in the operating expenditure and sustaining capital sector and the considerable organic growth of our maintenance business in 2016, and are well positioned for further sustainable growth in 2017/2018," continued Bradie.

Terms of the transaction were not disclosed. Brown and Root Industrial Services, LLC is a joint venture between KBR and Bernhard Capital Partners.

About KBR, Inc.

KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Hydrocarbons and Government Services Sectors. KBR employs over 31,000 people worldwide, with customers in more than 80 countries, and operations in 40 countries.