Foster Wheeler AG recently announced that it has acquired Mexican engineering company NorthAm Engineering S.A. DE CV for an undisclosed amount.
The acquisition of NorthAm is a strategic move by Foster Wheeler to expand its operations in the growing Mexican market. Foster Wheeler intends to include the business into its Global Engineering and Construction segment. This segment recently has been receiving a lot of contracts in the areas of front-end engineering and development. Now with NorthAm on board, Foster Wheeler intends to widen its geographic presence.
NorthAm is one of the leading Mexican engineering and project management companies. The company has its main operations in Mexico and has a strong track record in upstream, offshore and onshore, downstream and power projects.
Foster Wheeler has more than 60 years of experience in designing steam generator product range. Foster’s Global Engineering & Construction Group provides engineering, project management and construction management services, and purchases equipment, materials and services from third-party suppliers and contractors.
In the last reported quarter, Global Engineering and Construction group’s operating revenue was $587.9 million. The orders mainly consist of many small and medium-sized contracts. The segment ended the quarter with a backlog in future revenues of $2.7 billion. Recently, this segment received several contracts such as process design package for Moscow refinery’s crude and vacuum distillation units and the gas plant.
Foster Wheeler currently has a Zacks Rank #3 (Hold). Some other stocks which are worth a look at the moment are Orion Marine Group Inc. (ORN - Free Report) , Primoris Services Corporation (PRIM - Free Report) and Quanta Services Corporation (PWR - Free Report) . All three carry a Zacks Rank #2 (Buy).