Sector News

Jacobs Engineering sells energy, chemicals, resources biz for $3.3B

October 23, 2018
Energy & Chemical Value Chain

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

comments closed

Related News

March 24, 2024

Thomas Gangl leaves Borealis

Energy & Chemical Value Chain

Appointed Borealis CEO in 2021, Thomas has led key initiatives including the sale of the nitrogen business, acquisitions of Rialti Spa and Integra Plastics AD, and Borouge’s IPO. He also made the final investment decision for the Borouge 4 plant, set to be the world’s largest polyolefin complex.

March 24, 2024

Chemours names Dignam permanent CEO

Energy & Chemical Value Chain

The Chemours Co. today named interim CEO Denise Dignam as the company’s permanent CEO and president, as well as a member of the board of directors, effective immediately. Dignam has been interim CEO since late February, when former CEO Mark Newman was placed on leave due to an internal investigation.

March 24, 2024

Neste merges three business lines into new Renewable Products unit

Energy & Chemical Value Chain

Neste Corp. (Espoo, Finland) has completed its organizational change process, announced on 1 November 2023. Neste informed that it will merge its three renewable business units into one Renewable Products business unit as well as restructure its functions to better support business-driven ways of working.

How can we help you?

We're easy to reach