Jacobs to buy CH2M for $3.27B
Written by Railway Age StaffJacobs Engineering Group Inc. announced it would buy rival CH2M Hill Cos. Ltd. for $3.27 billion in cash and stock.
The deal would give Jacobs, based in Dallas, a greater presence in the government services and infrastructure sector. It is a leading provider in the petroleum and chemicals, where it provides consulting, engineering, maintenance and project management services. It also serves the aerospace and defense industries.
CH2M Hill, headquartered in Englewood, Col., specializes in infrastructure and government service, including transportation. It had revenue of $4.4 billion over the past year. The deal would double Jacobs’ revenue from its buildings and infrastructure business.
The acquisition’s equity value will be split 60% in cash, and 40% in Jacobs’ common stock. CH2M stockholders would own 15% of Jacobs’ shares.
The transaction is expected to close in the first quarter of fiscal 2018 financial year, subject to the approval of regulators and CH2M shareholders.
Jacobs employs more than 54,000 people in 25 countries, while CH2M has more than 20,000 staff.
