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

December 3, 2023

CF Industries completes acquisition of Waggaman ammonia production facility

Energy & Chemical Value Chain

CF Industries Holdings, Inc. (NYSE: CF) today announced that it has closed its acquisition of Incitec Pivot Limited’s (“IPL”) ammonia production complex located in Waggaman, Louisiana. Under the terms of the agreement, CF Industries purchased the Waggaman ammonia plant and related assets for $1.675 billion, subject to adjustments.

December 3, 2023

Virent and Johnson Matthey: behind the pioneering technology that enabled the first 100% SAF trans-atlantic flight

Energy & Chemical Value Chain

The Virgin Atlantic flight was powered entirely by SAF, that was a drop-in replacement for conventional jet fuel, but made solely from sustainable feedstocks. This was enabled through the inclusion of a new bio-based aromatic jet fuel blending component.

December 3, 2023

COP28: Cepsa, C2X eye €1B investment in green methanol plant at Huelva, Spain

Energy & Chemical Value Chain

Cepsa SA (Madrid) has agreed a deal with C2X, an independent firm owned by AP Moller Holding with AP Moller-Maersk as minority owner, to develop a 300,000 metric tons per year renewable methanol plant at Huelva, Spain.

How can we help you?

We're easy to reach