US: WorleyParsons has entered into a binding agreement to acquire Jacobs Engineering Group Inc’s Energy, Chemicals and Resources (ECR) division, a leading global technical services provider across hydrocarbons, chemicals and mining and minerals for US $3.3 billion, consisting of $2.6 billion in cash and $700 million in WorleyParsons shares.
Jacobs ECR is ranked number one globally for its delivery of complex petrochemical and chemical projects, its maintenance, modifications and operations (MMO) for hydrocarbons projects, including onshore and offshore production facilities and integrated project delivery, construction and technical services.
In the announcement yesterday morning, WorleyParsons said that Jacobs’ ECR division has a global footprint with long-term, blue-chip relationships in key strategic markets, most notably the US, Canada, the Middle East and India.
In combining the two complementary organisations, WorleyParsons is set to form a pre-eminent global provider of project and asset services in resources and energy and provide global sector leadership across hydrocarbons, chemicals and minerals and metals.
WorleyParsons CEO Andrew Wood said that he is excited to combine Jacobs ECR’s world-class capabilities with their ‘global platform’ to create a leader across key focus sectors.
“The transaction will bring complementary capabilities in key business lines, including a best-in-class onshore and downstream MMO capability, allowing customers to benefit from integrated solutions offering, while our employees will have increased opportunity for development as part of the leading global project delivery provider in our sectors,” he announced.
Jacobs Chairman and CEO, Steve Demetriou, said this transaction marks an inflection point in their portfolio transformation focused on more consistent, higher-margin growth as a leader solving the world’s critical challenges.
“The increased financial flexibility we gain from this sale better positions us to invest in our ATEN and BIAF businesses, focusing our premier talent and expertise on technology, innovation and sustainable solutions that are priorities for our infrastructure and government services clients. These capabilities, along with our strong backlog and efficient global platform, will further strengthen our global leadership in these segments to drive meaningful value creation,” he said.
More information on this announcement can be found here.