April 21 (Renewables Now) - Canada’s SNC-Lavalin Group Inc (TSE:SNC) has reached an agreement to buy WS Atkins Plc (LON:ATK), the UK-based engineering and project management consultancy with presence in renewables and future energies.
In early April it was announced that the Canadian engineering and construction group had offered to take over Atkins for GBP 20.8 (USD 25.86/EUR 24.27) per share in cash. The two parties have now shaken hands on that price, which is a 35% premium to Atkins’ closing on March 31, 2017, they said on Friday.
The deal values Atkins' entire issued and to be issued ordinary share capital at about GBP 2.1 billion. It is expected to lead to the creation of a CAD-12.1-billion (USD 9bn/EUR 8.4bn) global fully integrated professional services and project management company with about 53,000 employees.
“By combining two highly complementary businesses, we will increase our depth and breadth of services to position us as a premier partner to public and private sector clients. It also creates new revenue growth opportunities in key geographies by positioning us to capitalize on increased cross-selling and the opportunity to win and deliver major projects in new regions," said Neil Bruce, president and CEO of SNC-Lavalin.
The transaction is seen to close in the third quarter of 2017.
In the renewable energy space, Atkins offers engineering design and owners' engineer services for offshore wind, hydropower, biomass and waste-to-energy, solar, tidal and decentralised energy. It says it has collaborated with industry partners on more than half a dozen offshore floating wind projects, including the 402-MW Dudgeon, 258-MW Burbo Bank Extension and 580-MW Race Bank projects in UK waters.
(GBP 1.0 = USD 1.280/EUR 1.194)
(CAD 1.0 = USD 0.743/EUR 0.694)