PASADENA, Calif., Dec. 21, 2010 /PRNewswire-FirstCall/ -- Jacobs
Engineering Group Inc. (NYSE: JEC) announced today that it has
reached a definitive agreement with Aker Solutions ASA (Aker) to
purchase a number of Aker's operations within its Process and
Construction (P&C) business area.
The cash purchase price is estimated to be $675 million, adjusted for cash and debt
acquired. The transaction is subject to various regulatory
approvals and closing conditions, and it is expected to close in
the second quarter of fiscal 2011. The transaction is expected to
be modestly accretive to earnings in 2011.
Aker Solutions' P&C operations significantly expand Jacobs'
global presence in the mining and metals market; provide a new
geographic region with South
America; and strengthen Jacobs' presence in China. Jacobs' regional presence in
Australia, Europe and North
America is also enhanced as a result of the transaction.
Jacobs President and Chief Executive Officer Craig Martin said, "We are acquiring solid
businesses with a history of good performance. Additionally,
P&C's talented employees and strong client relationships align
well with our relationship-based business model. This acquisition
allows us to further diversify our services and drive greater
growth in our business."
Gary Mandel, executive vice
president, Aker Solutions' Process and Construction business area,
is expected to follow the P&C business into Jacobs. Mandel
stated,"Over the last few years, our business area has continued to
develop into a global project execution leader. Through Jacobs, we
have access to a much wider global resource base that enables us to
enhance our service offerings for customers and provide more
opportunities for employees."
Jacobs is one of the world's largest and most diverse providers
of technical, professional and construction services.
Aker Solutions ASA, through its subsidiaries and affiliates, is
a leading global provider of engineering and construction services,
technology products and integrated solutions. Aker Solutions'
P&C business area serves several industries, including onshore
oil and gas, refining & chemicals, mining & metals and
energy & environmental.
Cautionary Statement Regarding Forward-Looking
Statements
Any statements made in this release that are not based on
historical fact are forward-looking
statements. Although such statements are based on
management's current estimates and expectations, and currently
available competitive, financial, and economic data,
forward-looking statements are inherently uncertain. We,
therefore, caution the reader that there are a variety of factors
that could cause business conditions and results to differ
materially from what is contained in our forward-looking
statements. For a description of some of the factors which
may occur that could cause actual results to differ from our
forward-looking statements please refer to our 2010 Form 10-K, and
in particular the discussions contained under Items 1 - Business,
1A - Risk Factors, 3 - Legal Proceedings, and 7 - Management's
Discussion and Analysis of Financial Condition and Results of
Operations. We also caution the readers of this release that
we do not undertake to update any forward-looking statements made
herein.
In addition, factors, risks and uncertainties that may affect
Jacobs' ability to consummate the proposed acquisition include, but
are not limited to: (i) the failure of any conditions to completing
the proposed acquisition that will not be satisfied prior to
closing, including with respect to the receipt of any necessary
consents; (ii) the restrictions and limitations on the conduct of
the process and construction business prior to the consummation of
the proposed acquisition; (iii) uncertainties as to the timing of
the consummation of the proposed acquisition; (iv) the occurrence
of any event, change or other circumstances that could result in
the proposed acquisition not being consummated; and (v) other risks
not yet determined.
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http://photos.prnewswire.com/prnh/20090109/JACOBSEGLOGO)
For additional information
contact:
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John W. Prosser, Jr.
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Executive Vice President,
Finance and Administration
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626.578.6803
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SOURCE Jacobs Engineering Group Inc.