Canadian engineering and construction company SNC-Lavalin has reached an agreement to acquire the UK’s WS Atkins for £2.1 billion.
The two companies had said earlier this month that they were in talks over a potential deal.
SNC-Lavalin said the acquisition will produce a “fully integrated professional services and project management company, with scale and capabilities across its core markets”.
The acquisition will create growth and expansion of services and revenue, said SNC-Lavalin. It is also expected to deliver £938 million in cost synergies in both companies by the end of the first full financial year.
“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 SNC-Lavalin president and chief executive Neil Bruce.
“It also creates new revenue growth opportunities in key geographies by positioning us to capitalise on increased cross-selling and the opportunity to win and deliver major projects in new regions.”
After the completion of the deal, Uwe Krueger will give up his role as Atkins’ chief executive. The company’s finance director Heath Drewett has been offered the role of head of Atkins within the combined business.
The acquisition is the latest in the UK market for SNC-Lavalin, which bought the oil and gas services company Kentz Corporation in 2014 for £1.16 billion.
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