Receive our newsletter – data, insights and analysis delivered to you
  1. Uncategorised
October 22, 2018

Jacobs divests ECR segment to WorleyParsons for $3.3bn

US-based Jacobs Engineering Group (Jacobs) has agreed to sell its energy, chemicals and resources (ECR) segment to WorleyParsons for $3.3bn.

US-based Jacobs Engineering Group (Jacobs) has agreed to sell its energy, chemicals and resources (ECR) segment to WorleyParsons for $3.3bn.

Under a definitive agreement between the companies, the transaction value includes $2.6bn in cash and $700m in WorleyParsons ordinary shares.

Jacobs intends to focus on its higher margin lines of business, including aerospace, technology, environmental and nuclear (ATEN), as well as buildings, infrastructure and advanced facilities (BIAF).

Jacobs chairman and CEO Steve Demetriou said: “For Jacobs, this transaction marks an inflection point in our 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.”

Content from our partners
Green investment: What gives Scotland multiple advantages
How Hengst helped to keep Germany’s charity “star singers” shining
How one power station prevented frequent shutdowns with three-stage air filtration

Jacobs will use the nearly $2.6bn of proceeds to pay down floating-rate debt and to deploy capital for increased shareholder value, including mergers and acquisitions.

“The increased financial flexibility we gain from this sale better positions us to invest in our ATEN and BIAF businesses.”

The deal is expected to close in the first half of next year after obtaining all customary closing conditions and regulatory approvals.

Upon completion of the deal, Jacobs will receive approximately 58.2 million shares of WorleyParsons stock.

Jacobs CFO Kevin Berryman said: “While we are in the process of finalising our fiscal 2018 results, our current view is materially consistent with previously announced guidance for the year.

“In addition, we continue to believe that the adjusted EPS guidance provided for fiscal 2019 remains appropriate, keeping in mind that such guidance did not reflect any impact from the pending transaction announced today.”

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Wednesday. The power industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU