Shaw Acquires Coastal Planning & Engineering, Inc
Acquisition Expands Company's Water Resources and Ports and Harbors Expertise.
- (1888PressRelease) May 24, 2011 - BATON ROUGE, La. -- The Shaw Group Inc. (NYSE: SHAW) today announced it has acquired Coastal Planning & Engineering Inc. (CPE), a leader in coastal engineering and restoration, in an all-cash transaction valued at approximately $26 million.
Based in Boca Raton, Fla., CPE's full range of services includes coastal modeling, oceanographic measurements, marine biology, geotechnical surveys, hydrographic surveys and marine geology. CPE's 27-year history of coastal projects includes beach nourishment and island restoration following hurricanes and other erosion, offshore sand inventory and ship maneuvering studies for new and existing ports.
The company has worked with Shaw on multiple coastal engineering projects, including the most recent sand berm project for the state of Louisiana. Additionally, this acquisition includes a presence in Brazil for Shaw, which can accommodate the country's needed coastal restoration, port redevelopment and expansion, as well as oil and gas development.
"The acquisition of Coastal Planning & Engineering positions Shaw as a clear leader in coastal restoration services," said George Bevan, president of Shaw's Environmental & Infrastructure Group. "Our existing project management capabilities and ports and harbors expertise, now combined with CPE's coastal engineering services, allow Shaw to capitalize on multiple opportunities, including restoration of the Gulf Coast, port expansions and offshore energy support globally."
Shaw's own coastal experience includes strategic planning, design, construction and project monitoring in various coastal terrains, including Louisiana and Florida. Currently, Shaw is leading the largest design-build civil works project ever awarded by the U.S. Army Corps of Engineers, the Inner Harbor Navigation Canal Surge Barrier in New Orleans. The massive barrier is a key component in the Corps' Hurricane and Storm Damage Risk Reduction System, which is intended to provide 100-year storm-surge protection for the greater New Orleans area when completed. Shaw also provided expertise in response to the Deepwater Horizon oil spill with the creation of sand berms off the coast of Louisiana, the largest coastal sand barrier project in U.S. history.
The transaction, which is subject to post-closing adjustments, was completed in Shaw's third quarter of fiscal year 2011.
The Shaw Group Inc. (NYSE: SHAW) is a leading global provider of engineering, construction, technology, fabrication, remediation and support services for clients in the energy, chemicals, environmental, infrastructure and emergency response industries. A Fortune 500 company with fiscal year 2010 annual revenues of $7 billion, Shaw has approximately 27,000 employees around the world and is the power sector industry leader according to Engineering News-Record's list of Top 500 Design Firms. For more information, please visit Shaw's website at www.shawgrp.com.
This press release contains forward-looking statements and information about our current and future prospects, operations and financial results, which are based on currently available information. Actual future results and financial performance could vary significantly from those anticipated in such statements.
Among the factors that could cause future events or transactions to differ from those we expect are those risks discussed in our Annual Report on Form 10-K for the fiscal year ended August 31, 2010, our Quarterly Reports on Form 10-Q for the quarters ended February 28, 2010, May 31, 2010 and November 30, 2010, and other reports filed with the Securities and Exchange Commission (SEC). Please read our "Risk Factors" and other cautionary statements contained in these filings. Our current expectations may not be realized as a result of, among other things:
• Changes in our clients' financial conditions, including their capital spending;
• Our ability to obtain new contracts and meet our performance obligations;
• Client contract cancellations or modifications to contract scope;
• Worsening global economic conditions;
• Changes to the regulatory environment;
• Litigation or arbitration decisions;
• Failure to achieve projected backlog.
As a result of these risks and others, actual results could vary significantly from those anticipated in this presentation, and our financial condition and results of operations could be materially adversely affected. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, the occurrence of certain events or otherwise.
SOURCE: The Shaw Group Inc.
Media and Financial Contact:
The Shaw Group Inc.
Gentry Brann, 225-987-7372
gentry.brann ( @ ) shawgrp dot com