Jacobs acquires Aker process and construction business
By Helen Wright22 December 2010
Jacobs Engineering Group has deepened its footprint in the mining and metals market with the acquisition of a number of Aker Solutions' process and construction (P&C) operations for US$ 675 million cash.
Jacobs president and CEO Craig Martin said the deal would allow the company to further diversify its services and drive greater growth.
"Aker Solutions' P&C operations significantly expand Jacobs' global presence in the mining and metals market, provide a new geographic region with South America and strengthen Jacobs' presence in China. Jacobs' regional presence in Australia, Europe and North America is also enhanced as a result of the transaction," the company said.
Norwegian engineering services firm Aker Solutions said the sale formed part of its strategic effort to focus on its core oil and gas business.
Øyvind Eriksen, executive chairman of 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.
"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."
Executive vice president of Aker Solutions' P&C business area Gary Mandel is set to follow the P&C business into Jacobs.
The deal is expected to close in the second quarter of 2011.