Leidos [LDOS] on Wednesday said it has agreed to sell its heavy construction capability to the engineering and construction firm Haskell, allowing it to focus on its infrastructure engineering capabilities and opportunities.
Terms of the deal, which is expected to close in the second quarter of 2016, were not disclosed. Leidos said its sales guidance for this year includes about $175 million from the heavy construction business.
“Our strategic engineering capabilities have shifted over the past 18 to 24 months,” Roger Krone, chairman and CEO of Leidos, said in a statement. “That shift, coupled with our observation of infrastructure market conditions, challenged us to adjust our core focus. We are concentrating our efforts on the new market opportunities created by the convergence of the physical, digital, and data worlds. Our heavy construction capability is not critical to this direction. Our engineering and technology experts are now better positioned to push beyond traditional engineering in infrastructure markets.”
Florida-based Haskell said Leidos Constructors will be rebranded under its original name, Benham.