Jacobs to acquire CH2M
Published by Anna Nicklin,
Assistant Editor
Hydrocarbon Engineering,
Jacobs Engineering Group Inc. (JEC) and CH2M HILL Companies Ltd have entered into a definitive agreement under which Jacobs will acquire all of CH2M’s outstanding shares in a cash and stock transaction with an enterprise value of approximately US$3.27 billion, including approximately US$416 million of CH2M net debt.
CH2M has trailing 12 month revenues of US$4.4 billion and a team of 20 000 employees. Applying its advanced design, technical and programme management expertise across Jacobs’ global footprint will allow the combined company to deliver more solutions to more clients in the oil and gas industry.
As part of the acquisition, JEC has formed an Integration Management Office (IMO) to oversee the integration. The IMO will be jointly led on a full-time basis by senior executives from both companies. Gary Mandel, who joined Jacobs six years ago through the Aker Solutions Process & Construction acquisition, and most recently served as Jacobs President of Petroleum & Chemicals (P&C), has been appointed to lead the integration for Jacobs. In addition, Jacobs announced that Vinayak Pai has been appointed as interim head of Global P&C.
“By increasing our industry reach and adding to our already extensive skills, this transaction enhances our value to our clients and bolsters Jacobs’ position as a premier consulting, design, engineering, construction, and operations and maintenance technical services firm. […] In addition, this transaction is consistent with our M&A criteria, accelerating our ability to achieve our financial growth targets and propelling Jacobs toward our vision of providing innovative solutions for a more connected, sustainable world,” said Steve Demetriou, Jacobs’ Chairman and CEO.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/03082017/jacobs-to-acquire-ch2m/
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