Foster Wheeler AG (FWLT - Analyst Report) recently announced the acquisition of Yonkers Industries, Inc., that specializes in construction and commissioning of pharmaceutical and biotech facilities, along with managing full EPCm (Engineering, Procurement and Construction Management) of such facilities. The terms of the deal were not disclosed.
Foster Wheeler Biokinetics, a part of Fosters Engineering and Construction Group, is expected to benefit immediately from the Yonkers acquisition, as the life sciences client portfolio and the geographic coverage of the two companies complement very well. Further, the project and construction management skills of Yonkers are a perfect fit for the biotech, pharmaceutical, food, medical device, nutritional expertise of Biokinetics.
Therefore, the acquisition of Yonkers is a strategic move by Foster to provide its pharmaceutical business with a construction management capability in the U.S. Further, Yonkers has a strong reputation globally for its contract execution capabilities.
Hence, with this acquisition, Foster looks to reinforce its value proposition toward its pharmaceutical and biotech clients. In addition, Yonkers also has a partnership with Modular Partners, and also possesses the required expertise to provide modular project delivery worldwide.
Based in Cary, North Carolina, Yonkers has been providing construction and project management services globally for over three decades. The company specializes in the building of pharmaceutical and biotech facilities including R&D, pilot plants, labs, bulk manufacturing and finished dosage manufacturing, pulp & paper and process manufacturing. With offices across California, North Carolina and Puerto Rico and Yonkers has employee strength of about 200.
Foster currently has a short-term Zacks Rank #3 (Hold). One of its peers,Jacobs Engineering Group Inc. (JEC - Analyst Report) also carries a short-term Zacks Rank #3 (Hold).