Jacobs Engineering Group Inc. has completed its acquisition of CH2M via a cash and stock transaction. The combination, which received broad affirmative support from CH2M shareholders, is expected to drive the company’s profitable growth strategy further.
“This is a transformative step-change that brings together the industry’s foremost expertise and services to fulfill our vision to provide leading-edge solutions for a more connected, sustainable world,” said Jacobs Chairman and CEO Steve Demetriou. “Since our August announcement, we have held meetings with thousands of CH2M and Jacobs employees, and I cannot overstate the enthusiasm we share about our future together. Today, we are celebrating the creation of a new Jacobs with even greater aspirations to do meaningful work around the world, heartened by clients who have eagerly anticipated this combination.”
Demetriou stressed the combined firm’s continuing emphasis on talent retention and hiring as a top priority. “People are the heart of our organisation, and we are calling on the best and brightest to join the new Jacobs to drive our growth strategy and be part of our exciting future.”
Enhances position in infrastructure, including water and transportation
Water represents an approximately US$100 billion/yr opportunity, expected to grow at a 4 – 5% compounded annual rate, presenting significant potential to extend CH2M’s leadership in design, management and lifecycle services for government and industrial clients, including operations and maintenance, and resiliency services mitigating climate threats. Jacobs is expected to benefit by expanding these capabilities globally, backed by its strong operating and project delivery platform. The combined company will have a leading global water business with the scale, critical mass and experience to capitalise on infrastructure and industrial growth trends.
Jacobs already is a leader in the transportation sector, which includes highways, roads and bridges; rail; aviation; and ports; growing at 4 – 5% on a compounded annual rate. This sector’s significant investment momentum hinges on population growth and unprecedented demands for infrastructure development and improvement in all transportation modes and geographies, particularly in the US, Australia, New Zealand, Southeast Asia, the Middle East and the UK.
Bolsters top-tier position in nuclear and environmental services
Nuclear projects require specialised capabilities that are difficult to replicate and represent approximately US$145 billion in annual opportunities, growing 2 – 3% on a compounded annual basis. CH2M’s preeminent position in program management of large-scale environmental and nuclear remediation programs and Jacobs’ complementary experience with government agencies in nuclear decommissioning together create significant business expansion opportunities.
Environmental work represents an approximately US$160 billion annual opportunity, growing 4 – 5% on a compounded annual rate. The combined company will have a broad and deep environmental technical and project delivery capabilities in the industry. In addition, CH2M’s environmental expertise complements Jacobs’ existing business with the US federal government, positioning the combined company with leading capabilities for government clients that also are transferable to private-sector clients, creating opportunities for substantial upside potential for the company.
Expands leadership in growing industrial sectors
The combination brings together preeminent engineering expertise and proven programme and construction management capabilities, delivering advanced manufacturing and industrial technologies for diverse sectors, including consumer products, life sciences, pharmaceuticals, material sciences and semiconductors.
Enhances energy, chemicals and resources portfolio
The transaction combines both firms’ proven engineering and construction management capabilities to establish a differentiated, lifecycle-services offering for clients in these sectors. It further enhances Jacobs’ position, effectively moderating cyclical exposures with additional operational and maintenance capabilities for upstream, midstream and downstream clients, including critical infrastructure for major projects in the oil, gas, refining, chemicals and mining industries.
Read the full release here.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/20122017/jacobs-acquires-ch2m/