Jacobs Engineering Group Inc. (NYSE:JEC) announced today that it entered into a merger implementation agreement with Sinclair Knight Merz (SKM), a 6,500-person professional services firm headquartered in Australia, for approximately AUS$1.3 billion in cash (approximately US$1.2 billion as of the date of this release). The purchase price reflects an enterprise value of AUS$1.2 billion (US$1.1 billion) plus adjustments for cash, debt and other items.
The transaction is subject to approval through a Scheme process that includes SKM shareholder and Australian Federal Court approval, Australian Foreign Investment Review Board approval as well as other customary closing conditions. The transaction is expected to close by the end of Jacobs’ first quarter of Fiscal Year 2014, and to be accretive to earnings.
Founded in 1964, SKM is an employee owned company with broad consulting, planning, engineering, architecture, scientific and construction management capabilities. The company has significant operations in Australia, Asia, South America, and the U.K. and serves clients in multiple industries, including: Mining and Metals, Building and Infrastructure, Water and Environment, and Power and Energy. SKM’s 2012 revenue was approximately AUS$1.3 billion (US$1.2 billion).
In making the announcement, Jacobs President and CEO Craig Martin stated, “SKM’s culture, values, and operating philosophy are very compatible with ours, making our companies an excellent fit. Our capabilities and geographies have little overlap, enabling the combined companies to continue to expand client relationships and provide significant opportunities for employees. We are very enthusiastic about the potential.”
Jacobs is one of the world's largest and most diverse providers of technical, professional, and construction services.