(RTTNews) - Jacobs Engineering Group Inc. (J) said that it agreed to acquire a 65% stake in PA Consulting. The investment places an enterprise value of PA at 1.825 billion pounds or $2.4 billion.
The remaining 35% stake will be held by PA employees, following the exit of existing majority stakeholder, The Carlyle Group, Jacobs said in a statement.
Preferred equity holders receive a 12% compounded annual coupon accrual. A sweet equity incentive pool of 25% of the common equity is available for issuance to current and future partners and employees of PA. The sweet equity pool will be funded after satisfying the coupon on the preferred equity.
In addition, Jacobs will provide debt financing to PA in the form of a 650 million pounds or $845 million term loan and a revolving credit facility of up to 100 million pounds or $130 million to fund future growth.
Jacobs plans to fund the acquisition through a combination of cash-on-hand and existing and incremental debt facilities.
Jacobs expects the transaction to close by the end of its fiscal 2021 second quarter.
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