Aker Solutions has entered into a share purchase agreement whereby it has agreed to transfer operations within its Process and Construction (P&C) business area to Jacobs Engineering Group. Gary Mandel, Executive VP, Aker Solutions’ P&C business area, who will be following it into Jacobs, commented: “Over the last few years, our business area has continued to rebuild, diversify and develop into a leading global project execution specialist providing engineering, procurement, construction and other services.” Mining & Metals has been major sector.
He continued: “Through Jacobs we will have access to a much wider global resource base and technical competencies enabling us to enhance our delivery model and service offerings to our customers.”
Aker Solutions has approximately 30,000 skilled and dedicated people (including contract and craft personnel) serving the international oil, gas, energy and process industries. Of these the P&C operations transferring to Jacobs include approximately 4,500 employees located across operations in the UK, The Netherlands, Germany, USA, Canada, Peru, Chile, Australia, China and South Africa.
Jacobs President and Chief Executive Officer, Craig Martin, said: “We see this acquisition as benefiting the ongoing business of both organisations and supporting Jacobs’ strategy for growth. It fits well, and there are clear opportunities for increased market share in the core markets we serve. The deal leverages our combined offerings and competencies – with expanded business lines, a broader technical base and increased geographic accessibility for customers.”
Jacobs, one of the world’s largest and most diverse providers of technical, professional and construction services, reported 2010 revenues nearing $10 billion. The US-based company has over 50,000 employees and approximately 160 offices in more than 20 countries, including operations in North America, the UK, mainland Europe, the Middle East, India, Australia, Africa and Asia. The company provides services in all aspects of architecture, engineering and construction, operations and maintenance, as well as scientific and specialty consulting. Its primary markets include Aerospace and Defense, Automotive and Industrial, Buildings, Chemical and Polymers, Consumer and Forest Products, Energy, Environmental Programs, Infrastructure, Oil and Gas, Refining and Pharmaceuticals and Biotechnology.
The transaction value is estimated to be approximately $913 million), subject to closing adjustments. The consideration will be settled in cash at completion. Completion of the transaction will be subject to relevant merger control clearances. The parties expect to complete the transaction during the first quarter of 2011.
Øyvind Eriksen, executive chairman, Aker Solutions said: “In August, Aker Solutions announced the decision to separate the P&C business area from the Aker Solutions Group. Since then, we have explored alternative methods of separation, including an IPO and public listing. As the alternatives matured over the recent weeks, a sale to Jacobs evolved as the preferred solution industrially as well as financially.”
“This transaction provides a very good outcome for all parties – these businesses fit well with Jacobs and support their company’s ambitions for continued strong growth amongst its market segments, particularly in the energy & environmental; mining & metals; and onshore downstream process markets served by P&C.
“For Aker Solutions, this represents a further step in becoming much more streamlined and focused on our core oil and gas activities going forward. With the sale of these businesses to Jacobs and our recent decision to transfer the Union Construction and EPC Centre US operations to the new Aker Contractors company, Aker Solutions’ P&C business area will be dissolved. The future Aker Solutions will be a fully-fledged provider of engineering, technologies, solutions and services for the upstream oil and gas industry,” added Eriksen.