Tetra Tech Inc. (TTEK - Analyst Report) is all set to acquire an Australian mining engineering company, Proteus EPCM Engineers. As per the agreement, significant portion of Proteus’ assets will be taken over by Tetra Tech. In early August 2011, it is expected that the acquisition procedure will close.
Based in Perth, Australia, Proteus has an annual revenue generation of about $30 million. Total employee strength of Proteus is approximately 150. Proteus is an experienced provider of engineering services to the mining and minerals processing sector, working for more than 25 years in Western Australia. Iron ore, precious and base metals, gold, mineral sands, and aluminum are specialties of Proteus, who has been working as the owner’s engineer, engaged in designing facilities and providing procurement and construction management services.
The acquisition will help Tetra Tech in expanding its foothold globally. High demand for natural resources in Australia provides the company an opportunity to explore new markets, other than Asia and Africa. Tetra Tech continues to focus on Australia for growth in its other core markets.
Headquartered in Pasadena, California, Tetra Tech Inc. was initially founded in 1966 as a provider of engineering services related to waterways, harbors and coastal areas. Over the past 40 years, the company has substantially increased the size and scope of its business and expanded its service offerings through a series of strategic acquisitions and internal growth. Tetra Tech at present provides environmental services, water/wastewater management, infrastructure services, security design, and outsourced technical services. The company currently operates 250 offices worldwide and employs about 10,000 people. Major competitors of Tetra Tech are Arcadis NV, Shaw Group Inc. and URS Corporation (URS - Analyst Report).
We currently maintain our Neutral rating on Tetra Tech, with a Zacks #3 Rank (Hold recommendation) over the next one-to-three months.