Jacobs Engineering buys Sinclair Knight Merz
AUD1.3 billion is the price tag Jacobs Engineering Group would pay to acquire Sinclair Knight Merz. SKM is an Australian engineering firm currently assisting the Rio Tinto Group in the development of an African iron ore mine.
The deal is expected to be completed by December 2013's end. In a regulatory statement filed by the Pasadena, CA based Jacobs, the employee owned SKM would vote on the proposal either by November or December. This was confirmed by the Sydney based engineering firm.
Jacobs is the third largest engineering company in the United States and it has been trying to reach the number of orders during their banner year back in 2008. At that year, their order book listed USD16.7 billion in projects. With the SKM acquisition, Jacobs would expand its reach to Asia, Australia, South America and the United Kingdom. It also would have an additional income, with SKM earning AUD1.3 billion in 2012 in addition to Jacobs' own revenues of USD10.89 billion.
According to Jacobs President Craig Martin, in a statement "Our capabilities and geographies have little overlap. With the dleal, the combined group would expand client relationshops and provide significant opportunities for employees."