CH2M, which is part of UCOR, the federal cleanup contractor in Oak Ridge, is being acquired by Jacobs Engineering Group Inc.
The acquisition was announced Wednesday. It’s a a cash-and-stock transaction of about $3.27 billion, including a $2.85 billion purchase and roughly $416 million of CH2M net debt. It’s expected to close in the first quarter of Jacobs’ fiscal year 2018, which ends at the end of 2017.
The two companies are separate until then.
It’s too early to say whether the acquisition would have any effect on the federal contract with UCOR, but the companies said the transaction is about growth, acquiring the expertise of CH2M, and expanding the presence of the combined company.
CH2M, which is based in Colorado, is a partner in UCOR, or URS | CH2M Oak Ridge LLC. UCOR is the U.S. Department of Energy’s cleanup contractor for the DOE Oak Ridge Reservation, and it is primarily focused on cleanup of East Tennessee Technology Park (the former Oak Ridge K-25 Site). But UCOR also works on cleanup and waste management activities at other Oak Ridge Reservation sites.
CH2M’s partner in UCOR is AECOM. AECOM acquired URS, one of the original parent companies of UCOR, in 2014. RSI is a team subcontractor.
Jacobs Engineering Group Inc. has an office in Oak Ridge. The company is based in Dallas. The Dallas Morning News reported that the acquisition is a move by Jacobs to capture more of the highways, bridges and airport work that’s expected to come from President Donald Trump’s promised $1 trillion infrastructure-spending plan.
The two companies will combine corporate centers in Dallas, the newspaper reported. CH2M has 20,000 employees, and Jacobs has more than 54,000 workers.
A press release on the acquisition said CH2M is a world-renowned design, engineering, and program management firm, and it is a leader in key infrastructure and government service sectors that Jacobs has previously targeted for growth, including water, transportation, environmental, and nuclear.
The Dallas Morning News said Jacobs serves markets in infrastructure, aerospace, and technology, which includes a lot of federal government services work. The company’s projects touch industries spanning petroleum and chemicals, mining, pharmaceuticals, architecture, design, and construction management.
The press release said the merger agreement has been unanimously approved by the boards of directors of both companies. The deal will be 60 percent cash and 40 percent Jacobs common stock.
The transaction is subject to the satisfaction of customary closing conditions, including regulatory approvals and approval by CH2M stockholders.
See the CH2M press release on the acquisition here.
See the announcement by Jacobs here.
See the Dallas Morning News story on the acquisition here.
Learn about UCOR here.
More information will be added as it becomes available.
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