ANCHORAGE, Alaska (KTUU) - Global engineering firm CH2M Hill will be acquired by Dallas-based Jacobs Engineering Group in a nearly $3.3 billion deal, the two companies announced Wednesday morning.
The transaction is expected to close by the end of the first quarter next fiscal year. Combined revenue from both companies is expected to exceed $15 billion, according to a document by Jacobs with details on the deal.
As part of the deal, Jacobs will also absorb $416 million of CH2M’s net debt. CH2M stockholders will own 15 percent of Jacobs shares when the merger is completed.
CH2M has about 20,000 employees worldwide, and in 2015 was selected to completed certain preliminary support services for the proposed 800 mile Alaska LNG pipeline project. The Colorado-based company has been looking for a buyer since 2014.
"Throughout this time, we strengthened our business portfolio and performance, which put us in a position to deliver the best possible value and outcome for the future of the company," wrote Chairman and CEO Jacqueline Hinman. "This was the unanimous choice of our Board, and the value Jacobs will provide to our stockholders, reflects genuine appreciation for our employees and the world-class work we deliver to our clients.”