Move will create a global professional services and project management company with more than 50,000 employees
SNC-Lavalin has announced that it has completed the acquisition of WS Atkins, creating a global, fully integrated professional services and project management company that will include capital investment, consulting, design, engineering, construction, sustaining capital and operations and maintenance.
Together, the two companies will have more than 50,000 employees and annual revenues of $9.24 billion. Headquartered in the UK, Atkins is a geographically diversified company, with approximately 18,000 employees in the US, Middle East and Asia, along with leading positions in the UK and Scandinavia.
“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 SNC-Lavalin’s position as one of the largest fully integrated professional services firms in the world, while improving our margins and balancing our business portfolio,” said Neil Bruce, president & CEO.
“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. 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.”
In a statement, SNC-Lavalin added that the acquisition increases its customer base, geographic reach and scale, making it a true global player with more balanced revenue coverage worldwide, while strengthening its position globally to develop and capitalize on the infrastructure, rail & transit, nuclear and renewables markets.
The acquisition is expected to improve SNC-Lavalin’s quality of earnings, adding approximately $2.69 billion of consistent comparatively high-margin revenue, with ongoing revenue from framework and master service agreements, providing long-term repeat business.
“It further reduces our business risk profile and is expected to improve overall margins, as Atkins operates a consultancy business model, adds a significant amount of reimbursable projects, and fixed-price lump sum contracts do not carry any procurement or construction risk,” the statement added.
Heath Drewett, Group Finance Director and Executive Director of Atkins, now becomes President of Atkins, SNC-Lavalin’s fifth business sector, and a member of SNC-Lavalin’s executive committee, reporting directly to Neil 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,” said Heath Drewett, president of Atkins.
“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.”