Jacobs buys CH2M in major consolidation

US firm Jacobs has agreed to buy rival firm CH2M in a deal worth $2.85bn to create what Jacobs called a "premier $15bn global solutions provider".

The two companies said on 2 August that they had entered into a definitive agreement under which Jacobs will acquire all outstanding CH2M shares in a cash and stock transaction.

CH2M chairman Jacqueline Hinman (pictured) said her company had been pursuing an "ownership transition" since 2014 (CH2M)

CH2M chairman Jacqueline Hinman (pictured) said her company had been pursuing an "ownership transition" since 2014.

Jacobs already employs 54,000 people in 25 countries around the world. It sees CH2M as a leader in infrastructure and government services, including water, transportation, environmental and nuclear, Construction Manager reports.

The new overall firm will employee 74,000 people globally.

As GCR reported last month Jacobs also wants to leverage CH2M’s deep penetration of the UK infrastructure market.

The transaction is expected to close in the first quarter of Jacobs’ 2018 fiscal year.

Under the deal, 60% will be paid in cash and 40% paid in Jacobs common stock. It also includes £314m of CH2M’s net debt. Jacobs said it expected to make £113m of cost savings through the merger.

Steve Demetriou, chief executive of Jacobs, said: "By increasing our industry reach and adding to our already extensive skills, this transaction enhances our value to our clients and bolsters Jacobs’ position as a premier consulting, design, engineering, construction, and operations and maintenance technical services firm."

CH2M chairman Jacqueline Hinman said: "Since late 2014, we’ve been transparent about our plans to pursue an ownership transition, providing sustained access to capital for growth.

"Considering all of the options, we focused on securing greater opportunities for our employees, delivering superior value to our clients and enhanced value for our stockholders, all while continuing to serve the higher purpose our company is known for, providing sustainable solutions for a better world."

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  1. I had the pleasure of working for Jacobs Engineering for over 20 years, what a pleasure. The opportunity to advance and achieve goals were unlimited. I thank Pat Higgins and Nole Watson for giving me the opportunity to perform for such a great company. I wish this company the greatest success in all it does.

    E.L. Chapman (Ret. Jacobs Engineering employee)

  2. Hopefully they’ll stick with the Jacobs brand as CH2M has got to be the second worst name ever for an engineering company, 1st place goes to the Irish arm called CH2M Barry. I just wonder what happens on frameworks now where both Jacobs and CH2M have a place… less competition.. same has already happened with aecom/urs etc.

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