Jacobs Engineering to buy Australia’s Sinclair Knight Merz for $1.2 bn
10 Sep 2013
Jacobs Engineering Group Inc, one of the world's largest construction consulting firms, said on Sunday that it would buy Australia's Sinclair Knight Merz (SKM) for A$1.3 billion ($1.2 billion) in cash.
The transaction, which is expected to close by the end of Jacobs' first quarter of 2014, is subject to approval by SKM shareholders, the Australian Federal Court and Australian Foreign Investment Review Board.
Founded in 1964, Sydney-based SKM is a 6,500-strong, employee-owned company with consulting, planning, engineering, architecture, scientific and construction management capabilities.
The company has operations in Australia, Asia, South America, and the UK and serves clients in the mining and metals, building and infrastructure, water and environment, and power and energy industries.
SKM's 2012 revenue was approximately A$1.3 billion ($1.2 billion).
With 2012 revenues of nearly $11 billion, California-based Jacobs is one of the world's largest and most diverse providers of professional technical services.
It provides support in scientific and specialty consulting as well as all aspects of engineering and construction, and operations & maintenance to industrial, commercial, and government clients across multiple markets.
Jacobs president and CEO, Craig Martinstated, said, ''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.''