Jacobs' JV Wins Transport Scotland Deal
Jacobs Engineering Group Inc.'s (JEC) BEAR Scotland joint venture received a contract from Transport Scotland to oversee the operations and maintenance of key roads in the northwest region of Scotland. The five-year contract, estimated to be worth $160.0 million, (£175.0 million) also has an extension option for another five years. Jacobs formed the BEAR joint venture with Breedon Aggregates and Eurovia.
Scottish trunk roads and motorway are divided in four geographical units, each maintained under different contracts. This contract deals with the maintenance and safety inspection of 814 miles of roads and 2,372 structures in Scotland’s northwest region.
Jacobs has been involved in various contracts in various parts of Scotland. In Aug 2010, Jacobs won a contract from the North East of Scotland Transport Partnership, Aberdeen City Council and Aberdeenshire Council to provide environmental and transport related services till 2013.
In Jul 2010, Jacobs received a contract in relation to water infrastructure capital program in Scotland, which followed the Mar 2010 contract with Transport Scotland.Maintaining a strong relationship with the nation’s main transport agency provides Jacobs a strong goodwill.
Jacobs is one of the leading providers of professional, technical and construction services to industrial, commercial and governmental clients. The company provides its services through more than 200 offices and subsidiaries located principally in North America, Europe, Asia and Australia.
For such a company, backlog is a healthy measure of the company’s performance. Exiting the third quarter of fiscal 2013, Jacobs’ backlog was $17.2 billion, representing a 10.2% year-over-year increase.
Jacobs currently carries a Zacks Rank #3 (Hold). Other stocks to consider in the industry include Michael Baker Corp. (BKR), VSE Corp. (VSEC) and Winnebago Industries, Inc. (WGO). While Michael Baker carries a Zacks Rank #1 (Strong Buy), VSE Corp. and Winnebago carry a Zacks Rank #2 (Buy).
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