PHILADELPHIA, June 28 /PRNewswire-FirstCall/ -- CDI Corp. (NYSE: CDI) announced today that it has acquired the business of L. Robert Kimball & Associates, Inc. (L.R. Kimball), a 550-person professional services firm which provides architecture, civil and environmental engineering, communication technology and consulting services. Financial terms of the cash transaction were not disclosed. The acquisition is expected to be accretive to earnings beginning in the third quarter 2010.
Founded in 1953 and headquartered in Ebensburg, PA, L.R. Kimball provides fully-integrated project design and planning for clients throughout the US through a network of nine offices primarily in the Mid-Atlantic region. This acquisition establishes CDI's presence in the architecture and engineering (A&E) infrastructure marketplace and enables the company to provide professional services for aviation, civil, correctional, educational, environmental, judicial, public safety and transportation projects for federal, state and local government agencies as well as private industry organizations. In 2010, L.R. Kimball was ranked #155 on the Engineering News-Record annual "Top 500 Design Firms" list.
Effective immediately, L.R. Kimball becomes part of the CDI Engineering Solutions division. L.R. Kimball's headquarters location will remain in Ebensburg.
"This is an important step in our strategic plan to utilize acquisitions to expand into the infrastructure vertical, provide more higher value, higher gross margin services and to create a balanced portfolio of engineering services," said Roger H. Ballou, President and Chief Executive Officer of CDI. "We were attracted by L.R. Kimball's exceptional project management skills, its enduring long-term client relationships and its culture that understands the value of discipline, integrity and professionalism."
"This transaction represents an opportunity to accelerate our growth," added L.R. Kimball Founder & Chairman L. Robert Kimball. "We wanted to align our capabilities with a firm that could both leverage our A&E strengths across a new base of clients and offer our current clients additional services and technology on a national and global services delivery platform." Continuing his role as President of L.R. Kimball, and serving as a new Senior Vice President of CDI Engineering Solutions, Jeff Kimball also noted that, "This represents an exciting opportunity for our employees to take the L.R. Kimball reputation to the next level as we meet our clients' needs."
"We are pleased to have the L.R. Kimball team as part of the Engineering Solutions family," said Robert Giorgio, President of CDI Engineering Solutions. "The L.R. Kimball brand and its innovative practices will form the nucleus of our new CDI-Infrastructure vertical."
Headquartered in Philadelphia, CDI Corp. (NYSE: CDI; www.cdicorp.com) is a leading provider of engineering and information technology outsourcing solutions and professional staffing. Its operating units include CDI Engineering Solutions, CDI IT Solutions, CDI AndersElite Limited and Management Recruiters International, Inc. With offices throughout North America as well as joint ventures in Kuwait and Mexico, the CDI Engineering Solutions division provides engineering outsourcing, project management and professional services to Global 1000 clients in the aerospace, government services, infrastructure, life sciences and process & industrial markets.
Caution Concerning Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that address expectations or projections about the future are forward-looking statements, including statements regarding the impact of this acquisition on CDI's financial results. These forward-looking statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions that are difficult to predict. Because these statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control or are subject to change, actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to: the risk that the expected benefits of this acquisition are not realized; difficulties in integrating the acquired business with CDI and realizing anticipated synergies; the potential loss of key customers, employees and vendors of the acquired business as a result of the sale of the business to CDI; unforeseen costs and expenses relating to the integration of the acquired business; weakness in general economic conditions and levels of capital spending by customers in the industries that we serve; budgetary pressures faced by L. R. Kimball's customers, particularly federal, state and local government agencies; and the possibility of incurring liability for our and L. R. Kimball's performance on customer contracts. More detailed information about some of these and other risks and uncertainties may be found in our filings with the SEC, particularly in the "Risk Factors" section of our latest Form 10-K. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. CDI assumes no obligation to update such statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE CDI Corp.