SNC-Lavalin completes Atkins acquisition
Headquartered in the UK - with its Hub at Bristol (above) - Atkins is a geographically diversified global company with approximately 18,000 employees in the US, Middle East and Asia, together with a leading position in the UK and Scandinavia.
“SNC-Lavalin is continuing to deliver on its strategy of establishing itself in the top 3 in our industry globally. By combining our two highly complementary businesses, we are solidifying SNC-Lavalin’s position as one of the largest fully integrated professional services firms in the world, while improving our margins and balancing our business portfolio,” said Neil Bruce, President & CEO. “We are now a true global player that is in a stronger position to offer clients complementary and a wider breadth of expertise, capabilities and services. We are thrilled to welcome the employees of Atkins and the tremendous talent they will bring to our combined company. Together, we will become part of a larger global organization that will open the door to new opportunities for further growth and development.”
The acquisition of Atkins creates a global fully integrated professional services and project management company – including capital investment, consulting, design, engineering, construction, sustaining capital and operations and maintenance. Together, it will have over 50,000 employees and annual revenues of approximately C$12 billion.
Heath Drewett, Group Finance Director and Executive Director of Atkins, now becomes President of Atkins, SNCLavalin’s fifth business sector and a member of SNC-Lavalin’s executive committee, reporting directly to Neil Bruce.
“Joining SNC-Lavalin will provide us with the ability to offer our clients and employees the enhanced scale, capabilities, expertise and other benefits that come with being part of a larger and stronger global company,” said Heath Drewett, President of Atkins. “At the same time, we look forward to bringing our own unique project management, design, consulting and engineering capabilities to SNC-Lavalin’s clients. The result will be a more agile and responsive company that better meets client needs and creates cross-selling opportunities.”
Over the coming months, teams from both organisations will work together to integrate both companies in order to create value for all stakeholders and realise expected synergies from the acquisition. SNC-Lavalin has a strong record of successful integrations and is committed to leveraging the best practices from each organisation to ensure that the two companies are combined with speed, diligence and efficiency.
The acquisition is expected to deliver approximately C$120 million in cost synergies – approximately C$30 million from SNC-Lavalin and C$90 million from Atkins – by the end of the first full financial year. These synergies would mainly include eliminating corporate and listing costs, optimising corporate and back-office functions and shared services, streamlining IT systems and real estate consolidation where appropriate.
As previously announced by Atkins, Atkins shareholders voted in favour of the acquisition at a meeting convened by order of the High Court of Justice in England and Wales (the Court) and a general meeting, both held on 26 June 2017. The acquisition was structured as a scheme of arrangement and the Court sanctioned the scheme on 29 June 2017. Following the sanction of the Court, the acquisition became effective in accordance with its terms on 3 July 2017 (the Effective Date).
Founded in 1911, SNC-Lavalin is a global fully integrated professional services and project management company and involved in the ownership of infrastructure.
