Jacobs Announces Definitive Agreement to Acquire Aker Solutions' Process and Construction Business
Jacobs Engineering Group Inc. announced today that it has reached a definitive agreement with Aker Solutions ASA (Aker) to purchase a number of Aker's operations within its Process and Construction (P&C) business area.
The cash purchase price is estimated to be $675 million, adjusted for cash and debt acquired. The transaction is subject to various regulatory approvals and closing conditions, and it is expected to close in the second quarter of fiscal 2011. The transaction is expected to be modestly accretive to earnings in 2011.
Aker Solutions' P&C operations significantly expand Jacobs' global presence in the mining and metals market; provide a new geographic region with South America; and strengthen Jacobs' presence in China. Jacobs' regional presence in Australia, Europe and North America is also enhanced as a result of the transaction.
Jacobs President and Chief Executive Officer Craig Martin said:
"We are acquiring solid businesses with a history of good performance. Additionally, P&C's talented employees and strong client relationships align well with our relationship-based business model. This acquisition allows us to further diversify our services and drive greater growth in our business."
Gary Mandel, executive vice president, Aker Solutions' Process and Construction business area, is expected to follow the P&C business into Jacobs. Mandel stated:"Over the last few years, our business area has continued to develop into a global project execution leader. Through Jacobs, we have access to a much wider global resource base that enables us to enhance our service offerings for customers and provide more opportunities for employees."
Jacobs Engineering Group Inc. (NYSE: JEC) is one of the world's largest and most diverse providers of professional technical services. With annual revenues of nearly $11 billion, Jacobs offer full-spectrum support to industrial, commercial, and government clients across multiple markets. Services include scientific and specialty consulting as well as all aspects of engineering and construction, and operations and maintenance.
Published 21/12/2010
Find out more about:
Jacobs »
Search for more News
