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SKM to merge with Jacobs Engineering

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Jacobs Engineering Group has entered into a merger implementation agreement with Sinclair Knight Merz (SKM) for approximately $1.3 billion in cash.

Jacobs is a diverse provider of technical, professional, and construction services.

The purchase price reflects an enterprise value of $1.2 billion plus adjustments for cash, debt and other items.

The 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 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 $1.3 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.”

SKM’s CEO and Managing Director, Santo Rizzuto, remarked: “This uniquely positions us amongst our global peers and opens the way for us to achieve even greater things in the future. It adds scale, diversification and growth opportunities to our business.”

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