Jacobs Engineering Group has entered into a definitive agreement to sell its energy, chemicals, and resources (ECR) segment to WorleyParsons for $3.3 billion, which the company said will nearly double the Australian engineering firm’s staff. The deal, in which Jacobs will also take an 11%-stake in WorleyParsons, is expected to close in the first half of 2019.
WorleyParsons said in a statement that Jacobs ECR is ranked number one globally for its delivery of complex petrochemical and chemical projects, its maintenance, modifications and operations (MMO) for hydrocarbons projects, including onshore and offshore production facilities and integrated project delivery, construction and technical services. It has a global footprint with long-term relationships in key strategic markets, such as the US, Canada, the Middle East, and India. The business has more than 30,900 employees in 27 countries.
WorleyParsons CEO Andrew Wood said, “We are excited to combine Jacobs ECR’s world-class capabilities with our global platform to create a leader across our key focus sectors. The transaction will bring complementary capabilities in key business lines, including a best-in-class onshore and downstream MMO capability allowing customers to benefit from as expended integrated solutions offering, while our employees will have increased opportunity for development as part of the leading global project delivery provider in our sectors.”
Jacobs will be focused solely on its two higher-growth, higher-margin lines of business—aerospace, technology, environmental, and nuclear (ATEN) and buildings, infrastructure, and advanced facilities (BIAF).
"The increased financial flexibility we gain from this sale better positions us to invest in our ATEN and BIAF businesses, focusing our premier talent and expertise on technology, innovation, and sustainable solutions that are priorities for our infrastructure and government services clients," Jacobs Chairman and CEO Steve Demetriou said in a statement.
Jacobs has been shifting its business alignments in the past year. It acquired CH2M Hill last year for $3.3 billion purchase and took over Amec Foster Wheeler from the John Wood Group in a $2.9 billion.