WorleyParsons Ltd has paid $3.3 billion to acquire Jacobs Engineering Group’s energy, chemicals and resources (ECR) business as it looks to create a “pre-eminent global player across hydrocarbons, chemicals and minerals and metals”.

The transaction is expected to deliver approximately 50% earnings per share accretion on a financial year 2018 pro-forma basis after factoring in run-rate cost synergies, according to WorleyParsons.

This deal continues the trend of consolidation in the engineering sector. Jacobs acquired CH2M Hill Cos ltd for $3.3 billion last year and Amec Foster Wheeler took over John Wood Group for some $2.9 billion around the same time.

WorleyParsons CEO Andrew Wood said: “The transaction will bring complementary capabilities in key business lines, including a best-in-class onshore and downstream maintenance, modifications and operations capability, allowing customers to benefit from an expanded integrated solutions offering.”

Following the completion of the transaction, Jacobs will be focused solely on two of its higher growth, higher margin lines of business – aerospace, technology, environmental and nuclear and buildings, infrastructure & advanced facilities, Jacobs said.

Jacobs Chairman and CEO Steve Demetriou said: “For Jacobs, this transaction marks an inflection point in our portfolio transformation focused on more consistent, higher-margin growth as a leader solving the world’s critical challenges.”

The transaction will see Jacobs receive $2.6 billion in cash and 58.2 million shares of WorleyParsons, equivalent to $700 million, or 11% of the company.

Jacobs ECR had aggregated revenue and pro-forma EBITDA of $3.4 billion and $286 million, respectively in the 2018 financial year.

Should all go according to plan, WorleyParsons expects the deal to be complete some four to six months from now.