Jacobs Progresses Portfolio Transformation, Completes $3.3 Billion Sale of Energy, Chemicals and Resources Segment

Source Press Release
Company WorleyParsons LimitedJacobs Engineering Group Inc. 
Tags Corporate Deals, Deals, Oil Services
Date April 29, 2019

Jacobs (NYSE: JEC) today announced that it has successfully closed the previously announced sale of its Energy, Chemicals and Resources (ECR) segment to WorleyParsons Limited (ASX: WOR).

The completion of this deal marks a milestone in Jacobs' strategy to transform its portfolio emphasizing growth of its continuing businesses—Aerospace, Technology and Nuclear (ATN); and Buildings, Infrastructure & Advanced Facilities (BIAF)—to address disruptive shifts in technology, urbanization, the environment, climate and resiliency to create a more connected and sustainable world.

"With admiration for the people of the ECR business, which dates back to our company's founding more than 70 years ago, we extend appreciation and best wishes for continued success as a new force for the future of the energy sector," said Jacobs Chair and CEO Steve Demetriou."

Jacobs is poised for higher-margin growth as the leading provider of advanced technologies and solutions for critical challenges such as infrastructure, mobility, water, cybersecurity and digital demands," Demetriou continued. "Proceeds of the sale provide increased financial flexibility to invest in the talent and capabilities of our ATN and BIAF businesses, advancing industry-leading innovation and sustainable solutions that are priorities for our clients."   

Use of Proceeds

Jacobs will initially use proceeds to pay down floating-rate debt, while also maintaining a disciplined approach to deploy capital for increased shareholder value, including the accelerated share repurchase program announced in February; organic growth driven by innovation; and strategic acquisitions complementing the company's portfolio and profitable growth strategy, such as last week's announced acquisition of KeyW, provider of advanced security and technology solutions.

Source: EvaluateEnergy® ©2020 EvaluateEnergy Ltd