Jacobs Buys FMHC Corp; Wins US Army Deal

Zacks

Engineering and construction company Jacobs Engineering Group Inc. (JEC) recently announced the acquisition of Chicago-based FMHC Corporation. The financial terms of the deal were kept under wraps.

Since 1984, FMHC has been providing consulting and construction services to OEMs, major wireless carriers and others in the wireless communication industry. Along with this, the company also offers services for real estates, architecture, engineering and construction industries and also provides technical services.

Jacobs expects to enhance its geographical presence as well as services, with the acquisition of FMHC. FMHC has roughly a dozen offices in nine states across the country.

Separately, Jacobs also announced winning a contract to supply its Global Logistics and Support Services, to the U.S. Army in Rock Island, Ill. With a maximum value of $135 million, the contract spans for a year and has two one-year option periods.

The contract deals with the U.S. contingency services, where the company is providing analysis, logistics, acquisition, planning and life cycle management support services. Based on joint ventures and contract wins, Jacobs caters to an array of sectors like oil and gas, petrochemical, mining, IT services and power.

With such continuous growth initiatives, we expect the company to achieve greater success in the quarters to come. Jacobs is expected to release its fiscal first-quarter 2014 results on Jan 22. The Zacks Consensus Estimate for the same stands at 73 cents.

With a Zacks Rank #3 (Hold), Jacobs currently has a market capitalization of $8.3 billion. Some better-ranked stocks to watch out for in the industry include Beazer Homes USA Inc. (BZH), William Lyon Homes (WLH) and Standard Pacific Corp. (SPF). While Beazer Homes and William Lyon Homes carry a Zacks Rank #1 (Strong Buy), Standard Pacific holds a Zacks Rank #2 (Buy).

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