Jacobs Engineering Group Unveils Quartet of Contracts

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Jacobs Engineering Group Inc. announced four new contracts last week, headlined by a substantial deal for work on a new passenger terminal at the John Wayne Airport in Santa Ana.


The Pasadena-based construction services provider won a $249 million contract from Orange County to manage the construction of a 274,000-square-foot terminal that will feature six new gates and related boarding facilities.


“This award is testament to clear understanding of the specific needs and goals of the airport,” said Jacobs Group Vice President Kevin McMahon in a statement. “We are confident in our ability to help the county successfully complete this project on time and within budget.”


The project is intended to allow the airport to accommodate expected gains in commercial airline traffic through at least 2015.


Jacobs, which has more than 52,000 employees across the globe and about $8 billion in annual revenue, also announced a contract last week to provide management support for an energy research facility at Lawrence Livermore National Laboratory near San Francisco.


The contract is worth up to $19 million over the next four years.


Additionally, Jacobs last week won a contract to provide wastewater planning services for the city of St. Louis and a deal to help design an expansion of a polyurethane facility in the Netherlands.


The value of the deals was not disclosed.



Shipshape Business

Northrop Grumman Corp., the nation’s largest shipbuilder, announced last week it won a $90 million deal for work on one of two DDG-1000 Zumwalt-class destroyers the U.S Navy has commissioned.


“As we move towards the construction, this award provides the necessary funding to have materials and production planning ready,” said Brian Cuccias, Northrop’s vice president of the destroyer operations, in a statement.


The Pentagon also announced last week that Falls Church, Va.-based General Dynamics Corp. won a $142 million contract for work on the other ship.


The 600-foot-long Zumwalt-class destroyers incorporate a new, more flexible design that will allow them to operate as part of a joint maritime fleet, assisting the Navy at sea and Marine strike forces on land.


Northrop was scheduled to build the first destroyer, but the Navy decided General Dynamics would build it after Northrop’s naval shipyard in Mississippi was damaged during Hurricane Katrina. Both destroyers are scheduled to be delivered to the Navy by 2013.


Separately, Northrop announced it won an $18 million Air Force contract to provide planes with data links that will be used to transmit and collect mission video. Delivery of the systems will run from late 2008 through early 2010.



Capital Push

After the recent acquisition of a company in the emerging radio-frequency identification market, Avery Dennison Corp. last week announced a plan to raise $400 million to repay commercial paper obligations related to the financing of the purchase.


To raise the capital, the Pasadena-based office supply and label manufacturer launched an offering of 8 million HiMEDS units priced at $50 each. The company also plans to give underwriters the option to buy up to 800,000 more units for an additional $40 million.


Each unit consists of a contract to buy Avery’s stock by Nov. 15, 2010, and a one-twentieth undivided beneficial ownership in a $1,000 senior note due Nov. 15, 2020.


The company said the new capital will be used to help finance the $1.3 billion acquisition of Paxar Corp. in March. Avery bought Paxar in order to expand its presence in the RFID tracking labels market.


Shares of Avery rose more than 1 percent to $52 on Nov. 14, the day the company announced the plan.



Decontamination Deal

Teledyne Technologies Inc., a Thousand Oaks-based aerospace and electronic components manufacturer, recently inked a deal with the Defense Department to design and build a material decontamination system.


The initial $14.7 million contract covers design and testing of the Joint Material Decontamination System, which will remove toxic material left from nuclear weapons on electronic equipment, aircraft and buildings.


The company expects follow-on contracts to cover further production of the systems.



Staff reporter Richard Clough can be reached at (323) 549-5225, ext. 251, or at [email protected].

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