Willbros Group Inc (WG) Soars on $130 Million Deal with TRC Companies (TRR)


Shares of Willbros Group Inc (NYSE:WG) are soaring in morning trading today, after the company has announced that they are being acquired by TRC Companies, Inc. (NYSE: TRR). TRC has purchased the company’s Professional Services segment.

The acquisition has taken place as an “all cash” deal and it is valued at $130 million. Willbros will be receiving $122.5 million at closing and the balance of $7.5 million which will be paid in the near future.

“Willbros Professional Services is a transformational acquisition for TRC, continuing our profitable growth strategy of investing in complementary businesses with strong market fundamentals,” said TRC Chairman & Chief Executive Officer Christopher P. Vincze. “We anticipate a rapid and smooth integration. Our sales development teams already have begun working on new project opportunities, and clients are applauding the introduction of our new platform.

Shares of Willbros Group (WG) are up 9.76% or $0.29 after the news, hitting $3.26 per share. About 172,549 shares traded hands. WG has risen 12.93% since April 28, 2015 and is uptrending. It has outperformed by 13.82% the S&P500.

Out of 2 analysts covering Willbros Group (NYSE:WG), 0 rate it “Buy”, 0 “Sell”, while 2 “Hold”. This means 0 are positive. $1.35 is the highest target while $1.0 is the lowest. The $1.18 average target is -63.80% below today’s ($3.26) stock price. Willbros Group was the topic in 2 analyst reports since July 2, 2015 according to StockzIntelligence Inc. DA Davidson maintained the stock on August 10 with “Neutral” rating.

The institutional sentiment decreased to 0.43 in Q2 2015. Its down 0.69, from 1.12 in 2015Q1. The ratio worsened, as 42 funds sold all Willbros Group Inc shares owned while 32 reduced positions. 13 funds bought stakes while 19 increased positions. They now own 36.86 million shares or 18.42% less from 45.19 million shares in 2015Q1.

Gendell Jeffrey L holds 0.86% of its portfolio in Willbros Group Inc for 3.99 million shares. Schneider Capital Management Corp owns 2.26 million shares or 0.37% of their US portfolio. Moreover, Netols Asset Management Inc. has 0.26% invested in the company for 1.05 million shares. The Wisconsin-based Heartland Advisors Inc has invested 0.14% in the stock. First Wilshire Securities Management Inc, a California-based fund reported 447,156 shares.

Willbros Group, Inc. is a specialty energy infrastructure contractor serving the oil, gas, refining, petrochemical and power industries. The company has a market cap of $190.11 million. The Company’s offerings include engineering, procurement and construction (EPC), turnarounds, maintenance, facilities development and activities services. It currently has negative earnings. The Firm has four operating divisions: Oil & Gas, Professional Services, Utility Transmission and Distribution (Utility T&D), and Canada.