27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
- KBR, Inc. (NYSE:KBR) has entered into a definitive agreement with Babcock International Group PLC (OTC:BCKIF) to acquire Frazer-Nash Consultancy Limited, a provider of systems engineering, assurance, and technology advisory services, for ~$400 million in cash.
- Frazer-Nash delivers high-end systems engineering, systems assurance, and technology to solve complex challenges.
- KBR expects the acquisition to realign its portfolio and cost structure in the U.K. With modest revenue and cost synergies, the purchase price multiple is ~12X adjusted 2022 EBITDA.
- Frazer-Nash's revenue outlook for FY22 is $150 million to $170 million with adjusted EBITDA margins in the upper-teens and strong free cash flow generation.
- KBR expects the Frazer-Nash acquisition to be ~$0.10 accretive to adjusted EPS in FY22.
- Frazer-Nash will become part of KBR's Government Solutions segment.
- KBR targets to close the acquisition in the third or fourth quarter of 2021.
- KBR to fund the purchase price with ~$175 million of international cash on hand and $225 million of debt. It held $483 million in cash and cash equivalents as of June 30, 2021.
- Price Action: KBR shares are lower by 0.07% at $39.35 on the last check Friday.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!