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Jacobs To Sell Energy,Chemicals And Resources Unit To WorleyParsons For $3.3 Bln


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(RTTNews.com) - Jacobs Engineering Group Inc. ( JEC ) said it agreed to sell its Energy, Chemicals and Resources (ECR) segment to WorleyParsons Limited (WOR.AX) for $3.3 billion, consisting of $2.6 billion in cash and $700 million in WorleyParsons ordinary shares.

The Jacobs Board of Directors and the WorleyParsons Board of Directors each have approved the transaction. The transaction is expected to close in the first half of calendar 2019, subject to customary closing conditions and regulatory approvals.

Jacobs said, "Following the completion of the transaction, Jacobs will be focused solely on its two higher growth, higher margin lines of business - Aerospace, Technology, Environmental & Nuclear (ATEN) and Buildings, Infrastructure & Advanced Facilities (BIAF)."

The company said it will report results for fiscal 2018 on November 20.

Upon closing, Jacobs expects to receive about $2.6 billion in net proceeds from the transaction, which initially will be used to pay down floating-rate debt, while also maintaining a disciplined approach to deploy capital for increased shareholder value, including mergers and acquisitions.

The company noted that it will provide further details about its capital allocation strategy, as well as its updated pro forma financial outlook, at the company's investor day on February 19, 2019.

At the close of the transaction, Jacobs will receive approximately 58.2 million shares of WorleyParsons stock, which will equate to approximately 11 percent of WorleyParsons ordinary shares based on WorleyParsons' outstanding shares post-close. The shares will be subject to a six-month holding requirement (but not earlier than August 31) following the transaction's closing.


Read the original article on RTTNews (http://www.rttnews.com/2945483/jacobs-to-sell-energychemicals-and-resources-unit-to-worleyparsons-for-3-3-bln.aspx)


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This article appears in: World Markets , Stocks
Referenced Symbols: JEC ,



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