Correction: A story in Thursday's business section about KBR Inc.'s acquisition of BE&K Inc. contained an unclear quote. BE&K Building Group Chairman Luther Cochrane, former chairman of Bovis Lend Lease, was referring to Bovis' southeastern team when he said, "I have the same management team I had then."
Charlotte's BE&K Building Group will get a new owner and greater financial resources to expand its construction business as part of an acquisition announced Wednesday.
Houston-based KBR Inc., a global engineering, construction and services company, plans to acquire BE&K Inc., the Birmingham parent of the building group, in a transaction valued at $550 million.
"They love construction and they want to be a big player in the United States," said Luther Cochrane, chairman and CEO of BE&K Building Group. "It's like having a rich grandparent."
KBR employs more than 50,000 people worldwide and ranks No. 4 on Engineering News-Record magazine's top 400 U.S. Contractors list.
The company, which reported $2.7 billion in 2007 revenues, was a part of oilfield services giant Halliburton for 44 years until it separated in April 2007.
Cochrane said his group -- the name won't change -- will remain headquartered in Charlotte with the same leadership team and operate as the exclusive commercial, health care, industrial and institutional arm of the combined company.
He said the group, with annual revenues of $820 million to $1 billion, employs 470 salaried workers and 750 overall (including hourly employees).
Among its high profile projects are the NASCAR Hall of Fame Museum in Charlotte and the UNC Dental Sciences Building in Chapel Hill.
In 2004, Cochrane, former worldwide chairman and CEO of Bovis Lend Lease, came out of retirement after seven months to head BE&K's building group.
He retired from Bovis to spend time at home in Charlotte after growing weary of world travel, but in accepting BE&K's offer he noted that the challenge of building another company outweighed his interest in playing golf.
Cochrane's civic endeavors include chairing a task force on planning arts and cultural projects and chairing the Charlotte Regional Visitor Authority.
He was president of Charlotte's McDevitt & Street when London-based Bovis Construction Group acquired it in 1990. Nine years later, Sydney, Australia-based Lend Lease Corp. bought Bovis.
Cochrane said Bovis Lend Lease grew to about $8 billion in global revenues, $3.7 billion of which was in the United States, "and I have the same management team I had then."
KBR has "the potential horse power to help us get much bigger if we ever choose to do that," he said. "We've got the people to be twice as big, but if we do, it will be because we see opportunities with our clients."
BE&K Inc., a privately held engineering, construction and maintenance services company, reported $2 billion in annual revenue in the year ended March 30. It employs about 9,000 people worldwide.
"BE&K is a significant step in re-establishing KBR as a leading North American contractor and maintenance services provider," said William Utt, chairman, president and CEO.
The acquisition, subject to regulatory approval, is expect to close by July.
Doug Smith's Notebook
• CPS Color Equipment Inc. moved from southwest Charlotte to 35,642 square feet of leased space in Corinthian Properties' West Winds Business Park, on Derita Road across from the Concord Regional Airport.
John Wharton of Colliers Pinkard in Charlotte brokered the transaction for Corinthian Properties with colleagues John Cashion and David Dorsch. Gary Stephens of Southeast Commercial Real Estate represented CPS.
Daniel Bush, president-Americas for CPS Color, said the facility -- named The America Center at Concord -- will reflected the company's commitment to tinting technology and color marketing. Its showroom will demonstrate products and innovations.
• Homewood Suites by Hilton, an upscale extended-stay, residential-style all suites hotel, plans to open Saturday in Davidson.
The 128-suite facility at 125 Harbour Place is within a mixed-use development that includes walking paths, a pond and a park.
Homewood Suites offer guests a grocery shopping service plus such amenities as fully equipped kitchens, complimentary high-speed Internet access and separate living and sleeping areas.
DEVELOPMENT Doug Smith
