Jacobs Engineering Group Inc., one of the largest and most diverse providers of technical, professional and construction services to several industries including aviation, will acquire CH2M Hill Cos., another infrastructure builder, in a cash and stock transaction valued at approximately $3.27 billion.
As part of the deal, Jacobs will assume about $416 million in CH2M’s 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,” the companies announced in a statement.
CH2M has trailing 12-month revenues of $4.4 billion and 20,000 employees. The company is known worldwide for its design, engineering and project management, and it is a leader in key infrastructure and government service sectors previously targeted for growth by Jacobs, including water, transportation, environmental and nuclear.
“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,” says Steve Demetriou, chairman and CEO at Jacobs. “Together we will bring more solutions to our clients, give more opportunities to our employees and create increased value for Jacobs’ shareholders.”
A company spokeswoman told ARN that both firms’ extensive airport backgrounds will complement Jacobs and benefit the industry moving forward. Jacobs has worked in more than 80 airports in the United States and has been involved in a dozen aviation projects valued at more than $15 billion over the last 15 years. CH2M also has a significant presence in aviation-related projects. And the two companies partnered on an expansion project at London Heathrow (LHR).
“Together, the companies’ transportation expertise and global delivery platform will enhance Jacobs’ ability to capture top global opportunities,” says Mendi Head, vice president of global communications for Jacobs. “We expect Jacobs’ combined premier position in transportation to make the company an employer of choice. Capitalizing on Jacobs’ and CH2M’s combined talent, resources and scale creates a unique opportunity to better serve clients and improve the quality and dependability of their infrastructure, including in aviation.”
Gary Mandel, who most recently has served as president of petroleum and chemicals for Jacobs, has been appointed to lead the integration process.