Jacobs Engineering Group Inc. will sell off its energy, chemicals and resources business to WorleyParsons Ltd. in a $3.3 billion deal, the companies announced on Sunday, Oct. 21.
The sale will include $2.6 billion in cash and $700 million in shares of Australia-based WorleyParsons.
After Texas-based Jacobs divests, it will focus “solely” on more profitable businesses such as aerospace, technology, nuclear, infrastructure and advanced facilities segment, the company said in a press statement.
“For Jacobs, this transaction marks an inflection point in our portfolio transformation focused on more consistent, higher-margin growth as a leader solving the world’s critical challenges,” said Jacobs CEO Steve Demetriou, adding that the sale will give Jacobs the “financial flexibility” needed to focus on the higher performing businesses.
Jacobs also plans to partially use the $2.6 billion to pay down floating-rate debt, according to the company.
Shares of Jacobson were rising 6.5% on Monday. The company will report its earnings results for 2018 on Nov. 20.
The sale is set to make WorleyParsons the largest global provider of professional services in energy and resources, according to Reuters, and give Jacobs an 11%t stake in the company.
Jacobs had $15 billion revenue last year and has a workforce of 77,000.
By Adam Smith
Source: The Street
Corteva (Indianapolis, Indiana) says it has signed a definitive agreement to acquire Stoller Group (Houston, Texas), a producer of biostimulants and plant nutrition products, for $1.2 billion. Stoller is one of the largest independent biologicals companies globally, with operations in more than 60 countries and more than $400 million in annual sales.
OMV has announced its new corporate structure today, designed to fully enable the delivery of Strategy 2030. The new organization will be built on five distinct areas. In addition to the CEO and CFO areas, three business segments will be established: Chemicals & Materials, Fuels & Feedstock, and Energy.
The European petchem sector is readying for some tough quarters. It’s a different picture in the US. So is this the best time ever to find a new role in the chemical industry? If you are in Europe, you would expect me to say probably not. But actually, it depends. So let me give you four answers to this question.
