CH2M acquired by Dallas-based engineering firm in $3.3B deal
Nearly a decade after purchasing Alaska oilfield services company VECO, engineering firm CH2M has been bought by a Dallas-based company for nearly $3.3 billion.
Jacobs Engineering announced the $3.27 billion acquisition in a Wednesday statement, noting that it will include $416 million of CH2M’s net debt. The deal will be financed with a mix of 60 percent cash and 40 percent Jacobs stock.
“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,” Jacobs officials wrote.
Jacobs specifically saw opportunities in CH2M’s work in the water, nuclear and petroleum industries, the company said, which it hopes to join with its own experience and government contacts.
CH2M, formerly known as CH2M HILL, bought VECO in September 2007. The company name became a familiar sight to motorists in Midtown Anchorage after it rebranded the VECO building on 36th Avenue near the Seward Highway.
The company, which received a management contract for the troubled Port of Anchorage expansion project in 2014, had also retained Bank of America Merrill Lynch to assist with a possible sale of its oil and gas unit that year.
There wasn’t any specific word on the fate of CH2M positions or assets in Alaska, but Jacobs expects to spend roughly $225 million to eventually save $150 million a year from “real estate, optimization of corporate operations, alignment of organizational structures, procurement and IT systems.”
CH2M stockholders can receive $88.08, roughly one and two-thirds shares of Jacobs stock or a mix of cash and fractional shares for each share of CH2M stock they hold. About 15 percent of Jacobs stock will be held by CH2M stockholders in the final transaction.
Jacobs hopes to close the deal, which is subject to regulatory approval, in the 2018 fiscal year.