Dallas-based Engineering Group Completes CH2M Acquisition
DENVER – Dallas-based Jacobs Engineering Group Inc. has completed its acquisition of CH2M, an environmental and engineering consulting services firm with headquarters in Englewood, CO. The combination, which received broad affirmative support from CH2M shareholders, is expected to further drive the company’s profitable growth strategy.
“This is a transformative step-change that brings together the industry’s foremost expertise and services to fulfill our vision to provide leading-edge solutions for a more connected, sustainable world,” said Jacobs Chairman and CEO Steve Demetriou. “Since our August announcement, we have held meetings with thousands of CH2M and Jacobs employees, and I cannot overstate the enthusiasm we share about our future together. Today, we are celebrating the creation of a new Jacobs with even greater aspirations to do meaningful work around the world, heartened by clients who have eagerly anticipated this combination.”
Demetriou stressed the combined firm’s continuing emphasis on talent retention and hiring as a top priority. “People are the heart of our organization, and we are calling on the best and brightest to join the new Jacobs to drive our growth strategy and be part of our exciting future.”
According to the Denver Business Journal, the combined company will use a combined name — Jacobs CH2M — over the holiday period, until Jan 8., when it will assume the name ‘Jacobs.’
- Combination strongly supported by CH2M shareholders with approximately 96 percent affirmative vote.
- Strengthens Jacobs’ diversified and differentiated leadership position providing innovative government, infrastructure and industrial professional services.
- Establishes Jacobs as a global design leader in the industry, offering greater opportunities for employees as well as enhanced services to our clients.
- Reaffirms fiscal 2018 adjusted EPS guidance of $3.55 to $3.95. The combination is expected to be 15 percent accretive to Jacobs’ adjusted earnings per share in the first full year after closing1 and 25 percent accretive when further excluding the impact of amortization from CH2M purchase intangibles.
- Increases Jacobs’ proportion of higher growth, higher margin business while maintaining its lower-risk portfolio and investment-grade credit profile.
- Announces intention to streamline operating model into three global lines of business, including: Aerospace, Technology, Environmental and Nuclear (ATEN); Buildings, Infrastructure and Advanced Facilities (BIAF); and Energy, Chemicals and Resources (ECR).
- Former CH2M board member Barry Williams joins the Jacobs board of directors.
Image of CH2M HQ, courtesy of Business Wire.