Jacobs and CH2M to merge in a $3.27 deal
In a written statement, Jacobs said it will acquire all of the outstanding shares of CH2M in a cash and stock transaction, including around $416 million of CH2M debt.
CH2M had global revenue in the past 12 months of around $4.4 billion and about 20,000 employees. Its contracts are in the water, transportation, environmental and nuclear sectors.
Jacobs said that it expects to achieve $150 million of annual cost savings by the end of the second year following the close of the transaction. Savings are expected to come from real estate, optimisation of corporate operations, alignment of organisational structures, procurement and IT systems.
Jacobs expects to incur around $225 million in one-time costs to achieve these savings.
Jacobs also expects to serve more clients with more solutions in more geographies around the world.
Jacobs has formed an integration management office to oversee the integration of the two companies, led by senior executives from both companies. ■