Jacobs Engineering to buy out CH2M rival in $3.27bn deal
A major U.S construction company has entered an agreement to take over a rival firm in a deal valued at close to $3.27 billion.
Jacobs Engineering Group, a designer of highways, bridges and airports, announced that it would buy its closest rival – CH2M Hill Cos Ltd.
Jacobs is a major player in the petroleum and chemicals sector, providing consulting, engineering, maintenance and project management services.
The company also provides construction, nuclear and technical support services to the aerospace and defense sectors.
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CH2M Hill is a leader in the infrastructure and government service sectors, including water, transportation, environmental and nuclear, had a trailing 12-month revenue of $4.4 billion, Jacobs said.
The cash-and-stock deal would more than double Jacobs' revenue from its buildings and infrastructure business.
Close to 60% of the equity value of the deal would be paid in cash, with the remaining 40 % paid in Jacob’s common stock, the company said in a statement.
The deal would add about 15 percent to Jacobs' adjusted earnings per share and 25 percent to its adjusted cash earnings in the first full year, following its close in December 2017.
“This combination unites two industry-leading, innovative companies with complementary capabilities, cultures and relationships, resulting in a differentiated, end-to-end value proposition for clients, more opportunity for our employees and an enhanced platform for sustainable, profitable growth.” – Steve Demetriou, Jacobs’ Chairman and CEO.