EXTRA: WS Atkins Agrees GBP2.1 Billion Takeover By SNC-Lavalin

BRITAIN-TRANSPORT-RAILWAYS-HISTORY-OFFBEAT
WS Atkins surged after the takeover approach earlier this month
Author

23 April, 2017

MONTREAL-SNC-Lavalin Group Inc. announced April 20 that it has reached an agreement to acquire United Kingdom -based professional services firm WS Atkins plc for $3.6 billion.

"This acquisition is fully aligned with our stated growth strategy of becoming a recognized global E&C powerhouse", SNC-Lavalin CEO Neil Bruce said in a conference call after markets closed.

At 0800 GMT, shares in Atkins were up 95.27 pence, or 4.8%, at 2077.27 pence.

The offer price of 2080p is a 35% premium on last Atkin's closing share price.

SNC-Lavalin says the acquisition will create a $9-billion professional services and project management giant with 53,000 employees that will "significantly improve" its margins and "further balance its business portfolio" in infrastructure, rail and nuclear sectors. The company expects the acquisition to close third-quarter 2017.

The UK company will not pay any final dividend for the financial year ended 31 March 2017.

More news: Here's how the H-1B visa program works

Atkins now employs 18,000 staff and generated revenues of around £2bn in 2016.

SNC-Lavalin's Bruce said: "By combining two highly complementary businesses, we will increase our depth and breadth of services to position us as a premier partner to public and private sector clients". I look forward to welcoming Atkins' employees into our combined company.

When the deal is completed, Uwe Krueger will step down as Atkins CEO and director, although he and SNC-Lavalin are set to "discuss putting in place a transitional services agreement", says the intended new parent.

On top of any cross-selling benefits and increased geographical reach, SNC-Lavalin anticipates delivering annual cost synergies of around CAD120.0 million by the end of 2018 - split CAD90.0 million from WS Atkins and CAD30.0 million from SNC-Lavalin. "Together, we will become part of a larger global organization that will open the door to new opportunities for further growth and development".

"This transaction has the potential to transform SNC-Lavalin into one of the leading engineering consulting firms in the world", said Michael Sabia, president and chief executive officer of the Caisse, in a news release.


More news


  • Ann Coulter vows to speak at Berkeley

    They added that they could not guarantee the safety of Coulter or her audience at the proposed speech. Group members have stressed that they have "no intention of acceding to these unconstitutional acts".
    NCAA expected to announce tournament host sites today

    NCAA expected to announce tournament host sites today

    The ACC Women's Golf Championship will return to Greensboro's Sedgefield Country Club (Ross Course) on April 20-22, 2018. The conference now says that the football title game will return to Charlotte for its contractual run there through 2019.
    International Monetary Fund  raises China growth forecast to 6.6% this year, 6.2% in 2018

    International Monetary Fund raises China growth forecast to 6.6% this year, 6.2% in 2018

    They also expect President Donald Trump to deliver tax cuts and infrastructure spending that could help boost US economic growth. At the same time, adverse weather conditions and civil unrest threaten several low-income countries with starvation.
  • Trump says he will release tax reform package next week

    Trump says he will release tax reform package next week

    Most Democrats won't support a tax plan that simply cuts tax rates and Republicans have a narrow advantage in the Senate. However, the Trump administration previously set deadlines for releasing its tax plan that it did not meet.

    Jose Mourinho reveals the tactic that allowed Manchester United to beat Chelsea

    Meanwhile, Marcus Rashford was at his absolute best throughout last night's game. So far it has been okay for me but I still have to show I can give more.

    Islamic State attacked Iraq forces "with chemical weapons"

    A member of the Iraqi forces carries a rocket launcher on his back in the old city of Mosul on April 16, 2017. The UN estimated that another half million civilians were still in ISIS-controlled areas of west Mosul .
  • The 49ers Should Select Cornerback Sidney Jones in the NFL Draft

    Whether that's LSU safety, Jamal Adams , Clemson quarterback, Deshaun Watson , or even North Carolina quarterback, Mitch Trubisky. On a brighter note, let's take a look at the quarterbacks that may buck the trend and fit with Buffalo in this years draft.
    Apple Might Be Preparing to Overhaul the iPhone

    Apple Might Be Preparing to Overhaul the iPhone

    The other two models, however, will not have an OLED screen and likely be iterations to the current iPhone 7 models. Interestingly, Apple might also scrap the iconic home button in favor of on-screen keys à la Samsung Galaxy S8.
    Odd  brew: People are freaking out over the Starbucks Unicorn Frappuccino

    Odd brew: People are freaking out over the Starbucks Unicorn Frappuccino

    It's just launched a flavour-changing, colour-changing drink called the Unicorn Frappuccino . The eye-catching Frappuccino starts out as a purple drink with a sweet and fruity flavor.
  • Another nearby planet found that may be just right for life

    Another nearby planet found that may be just right for life

    This week, Harvard researchers announced the discovery of a planet called LHS 1140b hanging around not far from Earth. We also expect - and hope to check with future data - that the star is very quiet at high energies as well.
    Netflix stands on the threshold of 100 million subscribers

    Netflix stands on the threshold of 100 million subscribers

    It said it plans to spend $1 billion on marketing, on top of a $6 billion programming budget , to promote its titles in 2017. Although it was predicted to hit the mark back in the first quarter of 2017 the website has finally arrived to its goal.
    Workers relieve pressure on leaking Alaska oil well

    Workers relieve pressure on leaking Alaska oil well

    That's still down by nearly three-quarters from the peak of more than 2 million barrels in the late 1980s. The department has not yet been able to estimate how much crude has been released, it said.