Exhibit 99.2
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NEWS RELEASE
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FOR IMMEDIATE RELEASE
ENGlobal
CONTACT: Natalie S. Hairston
(281) 878-1000
ir@ENGlobal.com
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ENGLOBAL ANNOUNCES ACQUISITION OF PCI
Adding Electric Power Resources and Midwest Location
HOUSTON, TX, August 7, 2009 - ENGlobal (NASDAQ: ENG), a leading provider of
engineering and related project services, today announced that it has signed an
asset purchase agreement with PCI Management and Consulting Company ("PCI"), a
small, privately-held engineering firm based near Chicago, Illinois. PCI,
formerly known as Power Consultants, Inc., provides engineering, consulting, and
project management services, specializing in projects relating to the
generation, transmission and distribution of energy.
Since 1988, PCI has served clients in the energy, electric utility, and chemical
industries throughout North America. The business and its personnel have an
extensive project history, including steam and power generation, substation
design, transmission and distribution, and fuel conversions. The Schaumburg, IL
location provides ENGlobal a beachhead for expansion of its complete range of
EPC services into the Midwest, a previously stated objective for the Company.
No equity will be issued, nor will any debt or liabilities be assumed in
connection with this transaction. Detailed terms of the transaction, which is
expected to close in the third quarter, were not disclosed. The PCI transaction
represents the first of several acquisitions that ENGlobal expects to complete
over the next year, with a vision to increasing its service capabilities while
expanding into new geographical regions.
"PCI provides ENGlobal with a meaningful addition to our electric power
capabilities, and a strategic footprint in the Midwest. I would like to thank
Ron Winthrop, President of ENGlobal's Construction segment, for his leadership
during the acquisition process," said, William A. Coskey, P.E., Chairman and CEO
of ENGlobal Corporation.
Charles J. Tyburk, P.E., President of PCI, said, "We are excited about joining
the ENGlobal team, and look forward to great success together. PCI's extensive
project history, together with ENGlobal's strong reputation, will be a great
combination that we believe will promote robust future growth. We look forward
to offering our heritage clients an expanded array of EPC project services."
About PCI
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PCI Management and Consulting Company ("PCI") provides a full range of services
to clients that produce and utilize energy and has extensive experience with a
wide variety of energy technologies and fuel types. The Company develops a
specific implementation plan for each client and project, taking into
consideration the optimal engineering/design together with the appropriate
technology and financing alternatives. More information about PCI, including
project profiles, is available at www.pcienergy.com.
~ more ~
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654 N. Sam Houston Parkway E. * Suite 400 * Houston, Texas 77060
www.ENGlobal.com
ENGlobal Press Release
August 7, 2009
Page 2
About ENGlobal
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ENGlobal provides engineering, construction, automation, land and regulatory
services principally to the energy sector throughout the United States and
internationally. The Company has over 2,200 employees in 19 offices and occupies
about 500,000 square feet of office and fabrication space. ENGlobal has been
named one of the fastest growing engineering firms in the United States and
Canada by ZweigWhite in each of the last six years. Further information about
the Company and its businesses is available at www.ENGlobal.com.
Safe Harbor for Forward-Looking Statements
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Certain matters discussed in this press release may constitute forward-looking
statements within the meaning of the federal securities laws and are subject to
risks and uncertainties including, but not limited to: (1) our ability to
respond appropriately to the current worldwide economic situation and the
resulting decrease in demand for our services and competitive pricing pressure;
(2) our ability to achieve our business strategy while effectively managing
costs and expenses; (3) our ability to close the PCI acquisition and to
successfully integrate PCI's operations into ENGlobal's operations; (4) our
ability to collect accounts receivable in a timely manner; (5) our ability to
accurately estimate costs and fees on fixed-price contracts; (6) the effect of
changes in laws and regulations with which the Company must comply and the
associated costs of compliance with such laws and regulations, either currently
or in the future, as applicable; (7) the effect of changes in the price of oil;
(8) the effect of changes in accounting policies and practices as may be adopted
by regulatory agencies, as well as by the FASB; (9) the effect on our
competitive position within our market area in view of, among other things,
increasing consolidation currently taking place among our competitors; and (10)
our ability to increase or replace our line of credit. Actual results and the
timing of certain events could differ materially from those projected in or
contemplated by the forward-looking statements due to a number of factors
detailed from time to time in ENGlobal's filings with the Securities and
Exchange Commission. In addition, reference is hereby made to cautionary
statements set forth in the Company's most recent reports on Form 10-K and 10-Q,
and other SEC filings. Also, the information contained in this press release is
subject to the risk factors identified in the Company's most recent Form 10-K.
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