Mr. Robert Card reports
SNC-LAVALIN COMPLETES LANDMARK ACQUISITION OF KENTZ
SNC-Lavalin Group Inc. has completed its acquisition of Kentz
Corp. Ltd., a global company with 15,500 employees operating
in 36 countries. Kentz provides industry-leading engineering,
construction management and technical support services to clients in
the oil and gas sector.
The acquisition of Kentz supports SNC-Lavalin's continuing transformation
into a global Tier 1 engineering and construction company. The
transaction creates a group with approximately 45,000 employees, annual
revenues of about $10-billion and a backlog of roughly $13-billion as
per 2013 figures.
The combined company will also have a strong position in the world's
most dynamic growth markets, including the Middle East, North America,
Latin America and Asia Pacific.
"SNC-Lavalin is thrilled to welcome the employees of Kentz, who are the
heart and soul of the remarkable company we are acquiring today," said
Robert Card, president and chief executive officer, SNC-Lavalin Group. "We expect
that our combined capabilities will give us one of the best broad-based
service offerings in the E and C industry while expanding our presence in
key growth markets."
Transformational growth in oil and gas
The acquisition of Kentz transforms SNC-Lavalin's oil and gas
capabilities, creating a group of approximately 20,000 high-calibre
employees with industry-leading expertise for large and complex
projects in the upstream, liquefied natural gas, unconventional
(shale gas and oil sands), pipeline, offshore jacket and
steam-assisted-gravity-drainage sectors.
"We have now begun implementing our plan, which aims to ensure our teams
are combined efficiently, respectfully and as rapidly as possible,"
said Neil Bruce, president, resources, environment and water, SNC-Lavalin
Group. "We will be bringing together the best capabilities of our
two firms for the direct benefit of our clients. Our goal will be to
build strong and lasting relationships with our customers through
consistently delivering on our commitments and providing the best mix
of value and services."
Kentz will be incorporated into SNC-Lavalin while simultaneously
integrating SNC-Lavalin's current oil and gas business into Kentz's
operations. Christian Brown, Kentz's chief executive officer, now
becomes president, oil and gas, SNC-Lavalin Group. Mr. Brown will
continue to be stationed in Houston, Tex., and will report directly to
Mr. Bruce.
"Joining SNC-Lavalin will provide us with the ability to execute larger
scopes for major projects and enhance our access to new geographies in
both North America and Latin America," said Mr. Brown. "We look
forward to bringing our clients complete end-to-end solutions for their
projects by merging SNC-Lavalin's strong front-end engineering and
design capabilities with our industry-leading construction management,
commissioning and operations capabilities."
SNC-Lavalin paid 9.35 pounds sterling ($17.13) per share for a total purchase price of
approximately 1.2 billion pounds sterling ($2.1-billion). Kentz shareholders voted in
favour of SNC-Lavalin's offer at a meeting convened by order of the
court and an extraordinary general shareholders meeting, both held on
Aug. 11, 2014. The offer was structured as a scheme of arrangement,
and the scheme court hearing was held on Aug. 21, 2014. Following
the sanction of the court, the acquisition became effective in
accordance with its terms on Aug. 22, 2014.
We seek Safe Harbor.
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