Premium technical services company Jacobs Engineering Group Inc. JEC recently secured its position among the top-tier North American rail service providers by acquiring J.L. Patterson & Associates (‘‘JLP’’). The terms of the deal are not yet disclosed in the market.
Orange, CA-based JLP is a professional services engineering and consulting organization. The company specializes in management of environmental permit, design & construction as well as rail planning. Moreover, it offers premium services for various public transit agencies and is presently known as a prominent provider of non-imitable professional consulting services to Class 1 railroads in the U.S.
The strategic acquisition of JLP is expected to fortify Jacobs’ entire rail business portfolioi. Henceforth, Jacobs will be able to bid for complete service programs in the expanding West Coast rail markets of the U.S. This capacity for full-service bidding comes on the back of successful integration of JLP’s West Coast design concentration with Jacobs’ personal national systems resources. Also, supported by this amalgamation, Jacobs will be able to bid for the anticipated $17-billion commuter transit/rail capital programs.
Moving Ahead
Jacobs is one of the foremost providers of technical services and construction solutions for diversified public, industrial and commercial clients worldwide. It also offers rail planning, rail consulting, and designing & construction services to most private as well as public U.S. railroads. The firm remains keen on improving its business through suitable organic growth initiatives. We believe the latest acquisition will boost the company’s organic growth path, going ahead.
Stocks to Consider
Jacobs currently carries a Zacks Rank #4 (Sell). Better-ranked stocks in the industry include KBR, Inc. KBR, Dun & Bradstreet Corp. DNB and Booz Allen Hamilton Holding Corporation BAH. All three stocks currently hold a Zacks Rank #2 (Buy).
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