SNC-Lavalin acquires Atkins for total consideration of $3.6bn
SNC-Lavalin has completed its acquisition of Atkins for a total consideration of $3.6bn
SNC-Lavalin has completed its acquisition of Atkins for a total consideration of $3.6bn, it announced in a statement on Monday.
The acquisition was financed using the net proceeds from the company’s previously announced $880m public bought deal offering of subscription receipts.
The agreement will result in a total of more than 50,000 employees and annual revenues of approximately $12bn.
The deal is expected to deliver approximately $120m in cost synergies – approximately $30m from SNC-Lavalin and $90m from Atkins – by the end of the first full financial year.
“This acquisition increases our customer base, geographic reach and scale, making us a true global player with more balanced revenue coverage worldwide, while strengthening our position globally to develop and capitalize on the infrastructure, rail & transit, nuclear and renewables markets,” according to the company statement.
Atkins shareholders voted in favour of the acquisition at a meeting convened by order of the High Court of Justice in England and Wales (the Court) and a general meeting on 26 June, 2017.
Following the sanction of the Court, the acquisition became effective in accordance with its terms on July 3, 2017.
It was reported in April that Atkins chief executive Uwe Kruger will step down from his role if the acquisition successfully completes.
Heath Drewett, former group finance director and executive director of atkins, has in effect taken on the role of president of Atkins.
Drewett will report to SNC-Lavalin’s president and CEO, Neil Bruce, and has become a member of SNC-Lavalin’s executive committee.
“Joining SNC-Lavalin will provide us with the ability to offer our clients and employees the enhanced scale, capabilities, expertise and other benefits that come with being part of a larger and stronger global company,” said Heath Drewett, President of Atkins.
“At the same time, we look forward to bringing our own unique project management, design, consulting and engineering capabilities to SNC-Lavalin’s clients.
“The result will be a more agile and responsive company that better meets client needs and creates cross-selling opportunities,” he concluded.