Jacobs Engineering Group Inc. has reached a definitive agreement to acquire the construction unit of a Stockholm engineering firm in a deal valued as much as $913 million.
The Pasadena engineering and construction firm said that the engineering services unit of Aker Solutions ASA provides design and building services to the onshore oil and gas, chemicals, mining and metals industries.
When adjusted for debt, Jacobs values the deal at $675 million. Aker said in a separate statement it values the deal at $913 million.
The deal significantly expands Jacobs’ global presence in the mining and metals market, and should enable it to more easily enter South America and strengthen its business in China. The deal includes the transfer of 4.500 employees, and should be “modestly accretive” to earnings next year, Jacobs said.
"We are acquiring solid businesses with a history of good performance,” said Chief Executive Officer Craig Martin in a statement. “Additionally, P&C's talented employees and strong client relationships align well with our relationship-based business model.”
The deal, announced late Tuesday, does not include Aker's engineering procurement construction center in Houston and its Union Construction business in the U.S. and Canada, which Aker said will be spun off into a new Aker Contractors company. Pending regulatory approvals, the transaction should close in Jacob's fiscal second quarter ending in March.
Shares of Jacobs were up $1.92, or 4.4 percent, to $46.07 in midday trading on the New York Stock Exchange.
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