SNC-Lavalin to buy Atkins
SNC-Lavalin Group Inc. is set to acquire WS Atkins plc in a C$3.6-billion ($2.7-billion) transaction that is expected to close in 3Q.
MONTREAL, Canada– SNC-Lavalin Group Inc. is set to acquire WS Atkins plc in a C$3.6-billion ($2.7-billion) transaction that is expected to close in 3Q, subject to satisfaction or waiver of conditions.
The CBC has called the deal the largest transaction inSNC-Lavalin’s history.
The companies have agreed on the terms and conditions of the recommended all cash acquisition after SNC-Lavalin announced its interest through a possible offer on April 3.
Through their joint statement, the companies said the acquisition will create a $12.1-billion global fully integrated professional services and project management company with 53,000 employees.
The combined entity will have its head office in Montreal, Canada, where SNC-Lavalin Group is headquartered.
Under the terms of the deal, eachAtkins shareholder will be entitled to receive 2,080 pence in cash per Atkins share.
Accordingly, the Atkins directors confirm they intend unanimously to recommend that Atkins shareholders vote in favor of the Scheme at the Court Meeting and the resolutions to be proposed at the General Meeting.
Neil Bruce, president and CEO of SNC-Lavalin, said: “By combining two highly complementary businesses, we will increase our depth and breadth of services to position us as a premier partner to public and private sector clients.
“It also creates new revenue growth opportunities in key geographies by positioning us to capitalize on increased cross-selling and the opportunity to win and deliver major projects in new regions.”
Atkins Chairman Allan Cook said: “Having achieved our strategic target of 8% operating margin, the Atkins directors believe that Atkins is strongly positioned to execute on its growth strategy going forward.”