Jacobs strikes CH2M take over deal

August 9 2017   | Region: Cymru Wales, East Midlands, East of England, London, North East & Cumbria, North West, Northern Ireland, Scotland, South East, South West, West Midlands, Yorkshire & the Humber

Jacobs strikes CH2M take over deal
Consolidation among major consultancies continues with news that Jacobs is to acquire CH2M for $15Bn. The deal follows the completion last month of the $2Bn takeover of Atkins by SNC Lavalin and the loss of the Mouchel name in July following its acquisition by WSP.
 
Jacobs says that the move for CH2M will allow it to target “high margin, high growth” infrastructure work in countries including the UK. But a director of one rival consultant said the move could benefit other firms, predicting that the “huge upheaval” might lead to loss of market share and adding that some clients are “always nervous of large mergers and acquisitions”.
 
Jacobs currently has revenues of $11Bn, employs over 54,000 people and operates in more than 25 countries. Efficiency savings of $150M are expected within two years from the takeover of CH2M, which has revenues of $4.4Bn and 20,000 employees.
 
It is said that the application of CH2M’s advanced design, technical and programme management expertise across Jacobs’ global footprint will “enable the combined company to deliver more solutions to more clients”.
 
Jacobs chairman Steve Demetriou said in a statement: “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 brings to Jacobs a talented, engaged team with capabilities and values that are very complementary to our own.”
 
CH2M chairman Jacqueline Hinman added: “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.”
 
A so called Integration Management Office has been introduced to oversee the acquisition, led by senior executives including Gary Mandel of Jacobs and Lisa Glatch of CH2M. The transaction is expected to complete early next year.

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