SNC-Lavalin Group acquires UK based Atkins
SNC-Lavalin Group has acquired UK based Atkins in a $3.6 billion deal, battling off rival US company CH2M. The news will come as a welcome surprise to the company’s shareholders, where shares have since risen following the announcement. Established in 1938, Atkins are known to be involved in the Crossrail project in London, highlighting the company’s significant expertise within construction and infrastructure projects.
The merger will help cement SNC-Lavalin’s position and help develop its operations within construction, infrastructure and engineering worldwide, levelling their current business portfolio and existing customer base, in order to meet client needs and create further opportunities.
"We are very pleased to announce this proposed acquisition that is fully aligned with our growth strategy, creating a global fully integrated professional services and project management company – including capital investment, consulting, design, engineering, construction, sustaining capital and operations and maintenance. 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," said Neil Bruce, President & CEO.
"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. I look forward to welcoming Atkins' employees into 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."
Atkins chairman Allan Cook said, “The Board of Atkins believes that a combination will provide clear benefits to our shareholders, enhanced opportunities for our employees as part of a larger group, and a broader service offering for our customers.”
Uwe Krueger will officially step down from his role as Chief Executive once the merger is completed, and will be replaced by Chief Financial Officer and Executive Director Heath Drewett to lead the company in a new direction. The company currently employs approximately 18,000 individuals within several international markets. It is thought that current employees will be unaffected by the acquisition.