SNC-Lavalin, a leading engineering and construction group, said it completed the acquisition of WS Atkins, one of the world's most respected consultancies in design, engineering and project management, with a leadership position across the infrastructure, transportation and energy sectors.
The acquisition of the UK-based 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.
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 pointed out that together, it will have over 50,000 employees and annual revenues of approximately C$12 billion ($8.9 billion).
This acquisition increases the group's customer base, geographic reach and scale, making us a true global player with more balanced revenue coverage worldwide, while strengthening our position globally to develop and capitalize on the infrastructure, rail & transit, nuclear and renewables markets, remarked Neil Bruce, the president and CEO.
"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 the company's position as one of the largest fully integrated professional services firms in the world, while improving our margins and balancing our business portfolio," added Bruce.
A company based in Montreal, Canada, SNC-Lavalin provides EPCM services in a variety of industry sectors, including mining and metallurgy, oil and gas, environment and water, infrastructure and clean power.
"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," stated the top official.
"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," he added.
As per the new arrangement, Heath Drewett, the group finance director and executive director of Atkins, will now be the president of Atkins, SNC-Lavalin's fifth business sector, and a member of the executive committee, reporting directly to 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," remarked Drewett.
"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," he added.
Over the coming months, teams from both organizations will work together to integrate both companies in order to create value for all stakeholders and realize expected synergies from the acquisition.
SNC-Lavalin said it has a strong record of successful integrations and is committed to leveraging the best practices from each organization 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, optimizing corporate and back-office functions and shared services, streamlining IT systems, and real estate consolidation where appropriate.