Jacobs Engineering Group has announced plans to acquire CH2M for an estimated $3.27 billion.
The combined engineering company will be able to serve more clients around the world, said Jacobs, and deliver $150 million annual cost savings.
Jacobs said it will acquire all outstanding CH2M shares in a combined cash and stock deal worth $2.85 billion, of which 60 per cent will be paid in cash and 40 per cent in Jacobs Common Stock.
The total value of the transaction rises to $3.27 billion when you include $416 million of debt carried over from CH2M.
Steve Demetriou, Jacobs’ chairman and chief executive, said: “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.”
CH2M chairman and chief executive Jacqueline Hinman added: “Since late 2014, we’ve been transparent about our plans to pursue an ownership transition, providing sustained access to capital for growth.
“Considering all of the options, we focused on securing greater opportunities for our employees, delivering superior value to our clients and enhanced value for our stockholders, all while continuing to serve the higher purpose our company is known for, providing sustainable solutions for a better world.”