Built to inform

Sign up for the daily newsletters

No, Thank you

Atkins and SNC-Lavalin agree on acquisition terms

Uwe Kruger will step down from his role following the completion of the acquisition, expected to result in cost synergies worth $89m by the end of 2018

Atkins's portfolio in the Middle East includes Burj Al Arab.
Atkins's portfolio in the Middle East includes Burj Al Arab.

Canada's SNC-Lavalin will acquire UK-headquartered consultancy, Atkins, for $2.6bn (£2.1bn), it has been confirmed. 

Atkins chief executive Uwe Kruger will step down from his role if the acquisition successfully completes. 

SNC-Lavalin will pay £20.80 in cash for each Atkins share – a 35% premium to the closing price (£15.40) on March 31, 2017. 

READ: How were Atkins's shares impacted by SNC-Lavalin's bid?

The acquisition, according to SNC-Lavalin's board, "represents a compelling opportunity to accelerate the delivery of [its] strategy to become a global fully integrated professional services and project management company".

In addition, the combined entity formed following the transaction would also help SNC-Lavalin add a "significant complementary presence in [...] the Middle East and Asia", among other key global markets. 

By the end of 2018, annual cost synergies for both legacy organisations are expected by SNC-Lavalin to amount to approximately $89.1m (CAD120m), of which $66.8m (CAD90m) would be from Atkins, and $22.3m (CAD30m) from the Canadian firm. 

Heath Drewett, current chief financial officer (CFO) and executive director of Atkins, has been offered to lead Atkins under the combined entity following the acquisition's completion. 

Under the terms of this offer, Drewett will report to SNC-Lavalin’s president and CEO, and become a member of SNC-Lavalin’s executive committee, a company statement revealed

Atkins's project portfolio in the Middle East includes Riyadh Metro, Dubai Metro, Burj Al Arab (pictured), and Doha Metro Red Line South.

 

Most popular

Awards

Construction industry conversations around digitisation must evolve
The Middle East construction industry’s approach to tech must evolve and focus on how can

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 754
Nov 23, 2019