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Jacobs to Acquire Sinclair Knight Merz in Australia

PM INDUSTRY NEWS

15 September 2013 – Pasadena, California, USA – Jacobs Engineering Group Inc. has announced that it has entered into a merger implementation agreement with Sinclair Knight Merz (SKM), a 6,500-person professional services firm headquartered in Australia, for approximately AUS$1.3 billion in cash (approximately US$1.2 billion). The purchase price reflects an enterprise value of AUS$1.2 billion (US$1.1 billion) plus adjustments for cash, debt and other items.

130915-pmwj15-skm-IMAGEThe transaction is subject to approval through a Scheme process that includes SKM shareholder and Australian Federal Court approval, Australian Foreign Investment Review Board approval as well as other customary closing conditions. The transaction is expected to close by the end of Jacobs’ first quarter of Fiscal Year 2014, and to be accretive to earnings.

Founded in 1964, SKM is an employee owned company with broad consulting, planning, engineering, architecture, scientific and construction management capabilities. The company has significant operations in Australia, Asia, South America, and the U.K. and serves clients in multiple industries, including: Mining and Metals, Building and Infrastructure, Water and Environment, and Power and Energy. SKM’s 2012 revenue was approximately AUS$1.3 billion (US$1.2 billion).

In making the announcement, Jacobs President and CEO Craig Martin stated, “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.”

Jacobs Engineering Group Inc. (NYSE: JEC) is one of the world’s largest and most diverse providers of professional technical services. With annual revenues of over $10 billion, Jacobs offers full-spectrum support to industrial, commercial and government clients across multiple markets.  Services include scientific and specialty consulting as well as all aspects of engineering, construction, operations, maintenance and project management. Based in Pasadena, California, USA, Jacobs has more than 200 offices in over 25 countries. More at http://www.jacobs.com/

Source: Jacobs Engineering