The Jacobs Engineering Group Inc. is to acquire CH2M HILL Companies to create one of the world’s largest multidisciplinary infrastructure and engineering consultancies.
The two companies have entered a definitive agreement under which Jacobs will acquire all of the outstanding shares of CH2M in a cash and stock transaction with an enterprise value (EV) of approximately US$3.27bn, including approximately US$416m of CH2M net debt.
The combination unites two industry-leading, innovative companies with complementary capabilities, cultures and relationships, resulting in a differentiated, end-to-end value proposition for clients and an enhanced platform for sustainable, profitable growth.
With trailing 12-month (TTM) revenues of US$4.4bn and a team of 20,000 employees, CH2M is a world-renowned design, engineering and program management firm, and is a leader in key infrastructure and government service sectors that Jacobs has previously targeted for growth, including water, transportation, environmental and nuclear. Applying CH2M’s advanced design, technical and program management expertise across Jacobs’ global footprint will enable the combined company to deliver more solutions to more clients in both the government and private sectors.
Jacobs is one of the world’s largest and most diverse providers of full-spectrum technical, professional and construction services for industrial, commercial and government organizations globally. The company employs over 54,000 people and operates in more than 25 countries around the world.
“By increasing our industry reach and adding to our already extensive skills, this transaction enhances our value to our clients and bolsters our position as a premier consulting, design, engineering, construction, and operations and maintenance technical services firm,” said Steve Demetriou (above, left), Jacobs’ chairman and CEO.
“CH2M brings to Jacobs a talented, engaged team with capabilities and values that are very complementary to our own. Together, we will bring more solutions to our clients, give more opportunity to our employees, and create increased value for our shareholders. In addition, this transaction is consistent with our M&A criteria, accelerating our ability to achieve our financial growth targets and propelling us toward our vision of providing innovative solutions for a more connected, sustainable world.”
CH2M’s chairman and CEO, Jacqueline Hinman (above, right), “We are delighted about the prospects of combining CH2M with Jacobs. 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.”