Jacobs buys Aker Solutions' process and construction business
Jacobs Engineering Group Inc. has reached a definitive agreement with Aker Solutions ASA to purchase a number of Aker's operations within its process and construction (P&C) business area.
The cash purchase price is estimated to be $675 million, adjusted for cash and debt acquired. The transaction is subject to various regulatory approvals and closing conditions, and it is expected to close in the second quarter of fiscal 2011. The transaction is expected to be modestly accretive to earnings in 2011.
Aker Solutions' P&C operations significantly expand Jacobs' global presence in the mining and metals market; provide a new geographic region with South America; and strengthen Jacobs' presence in China. Jacobs' regional presence in Australia, Europe and North America is also enhanced as a result of the transaction.
"We are acquiring solid businesses with a history of good performance,” said Jacobs President Craig Martin. “Additionally, P&C's talented employees and strong client relationships align well with our relationship-based business model. This acquisition allows us to further diversify our services and drive greater growth in our business."
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