Jacobs Engineering Group completes acquisition of CH2M
As of December 15, 2017, Jacobs Engineering Group has completed its acquisition of CH2M. According to a Jacobs press release dated 12/18/17, this move received strong support from CH2M shareholders and will give the company opportunity for continued growth.
CH2M is a world-renowned design, engineering, and program management firm that leads in areas such as water, transportation, environmental, and nuclear, which Jacobs has targeted for growth.
The company announced its intention to streamline operating model into three global lines of business, including: Aerospace, Technology, Environmental and Nuclear (ATEN); Buildings, Infrastructure and Advanced Facilities (BIAF); and Energy, Chemicals and Resources (ECR).
Strategic Benefits to Jacobs from Acquisition:
- Provides Leading Position in Infrastructure (Including Water & Transportation)
- Better Positions Jacobs to Achieve Significant Growth in Government Services Sector by Establishing Jacobs as a Tier 1 Service Provider to the Global Nuclear Industry and Significantly Expanding its Environmental Capabilities
- Strengthens Capabilities in Industrials, and Petroleum and Chemicals
- Creates Significant Cost Savings
- Creates Significant Upside Revenue Potential
- Transaction Value Represents Attractive Multiple
- Strong Accretion to Jacobs’ Earnings
- Maintains Jacobs’ Strong Balance Sheet and Financial Flexibility
- Maintains Jacobs’ Low-Risk Profile