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Tuesday, January 26, 2021

Jacobs Engineering to acquire rival for $3.27B

Dallas-based Jacobs Engineering Group Inc, is buying rival CH2M Hill Cos Ltd. for $3.27 billion in cash and stock.

The deal will better position Jacobs to achieve significant growth in the government services sector, according to a Jacobs’s news release.

CH2M Hill, based in Englewood, Colorado, is a leader in the infrastructure and government services sector and had a trailing 12-month revenue of $4.4 billion, according to Jacobs.

Jacobs has formed an Integration Management Office (IMO) to oversee the integration of Jacobs and CH2M. The IMO will be jointly led on a full-time, dedicated basis by senior executives from both companies. Gary Mandel, who joined Jacobs six years ago through the Aker Solutions Process & Construction acquisition, and most recently served as Jacobs president of Petroleum & Chemicals (P&C), has been appointed to lead the integration for Jacobs. In addition, Jacobs announced that Vinayak Pai has been appointed interim head of global Petroleum & Chemicals.

Perella Weinberg Partners LP and Morgan Stanley & Co. LLC are serving as financial advisors to Jacobs. Fried, Frank, Harris, Shriver & Jacobson LLP and Wachtell, Lipton, Rosen & Katz are serving as legal counsel to Jacobs.

BofA Merrill Lynch and Credit Suisse are serving as financial advisors to CH2M. Latham & Watkins LLP and Richards, Layton & Finger, P.A. are serving as legal counsel to CH2M.

Jacobs employs over 54,000 people and operates in more than 25 countries around the world

CH2M has more than 20,000 employees around the world.

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