SNC-Lavalin Group Inc. announced it completed its acquisition of Jersey-based oil and gas services company Kentz Corp. Ltd.
The acquisition of Kentz supports SNC-Lavalin’s ongoing transformation into a global Tier-1 engineering and construction (E&C) company. The transaction creates a group with approximately 45,000 employees, annual revenues of about US$9.1 billion (C$10 billion) and a backlog of roughly $11.8 billion (C$13 billion) as per 2013 figures.
The combined company will also have a strong position in the world’s most dynamic growth markets, including the Middle East, North America, Latin America and Asia-Pacific.
The acquisition of Kentz transforms SNC-Lavalin’s oil and gas capabilities, creating a group of approximately 20,000 high-caliber employees with industry leading expertise for large and complex projects in the upstream, liquefied natural gas (LNG), unconventional (shale gas and oil sands), pipelines, offshore jackets and steam-assisted gravity drainage (SAGD) sectors.
Kentz will be incorporated into SNC-Lavalin while simultaneously integrating SNC-Lavalin’s current oil & gas business into Kentz’s operations. Christian Brown, Kentz’s chief executive officer, now becomes president, oil & gas, SNC-Lavalin Group Inc. Brown will continue to be stationed in Houston, Texas.
SNC-Lavalin paid $12.37 (£9.35) per share for a total purchase price of approximately $1.6 billion (£1.2 billion). Kentz shareholders voted in favor of SNC-Lavalin’s offer at a meeting convened by order of the court and an extraordinary general shareholders meeting, both held on 11 August 2014.
“We expect that our combined capabilities will give us one of the best broad-based service offerings in the E&C industry, while expanding our presence in key growth markets,” says Robert G. Card, SNC-Lavalin Group Inc. president and CEO.
SNC-Lavalin agreed to buy Kentz in June 2014.
Image from SNC-Lavalin