Sunday 26th May, 2019

WorleyParsons makes $4.55 billion acquisition

Dana Incorporated has completed its acquisition of SME Group which manufactures low voltage motors for materials handling and agriculture vehicles.

Engineering services company WorleyParsons has made a $4.55 billion acquisition of Jacobs Engineering Group’s Energy, Chemicals and Resources division (Jacobs ECR).

The companies entered the agreement on 22 October 2018.

The new merged business is a pre-eminent global provider of professional project and asset services in energy, chemicals and resources, employing 57,600 people across 51 countries.

“This merger is about more than capacity and capability; it’s about opportunity – the opportunity to become the partner of choice for our customers, the employer of choice for our people and to deliver enhanced returns for our shareholders,” said WorleyParsons CEO, Andrew Wood.

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The operating structure announced in February of four business units, Advisian, Energy and Chemical Services, Mining, Minerals & Metals Services and Major Projects and Integrated Solutions, is effective from completion. The transition process for combining the businesses into a cohesive, merged new company is underway following a period of extensive planning.

Cost synergies of around $130 million at a cost of $160 million are anticipated to be delivered within two years. Further benefits will be achieved from optimisation and revenue synergies.

WorleyParsons has adopted ‘Worley’ as its new brand. The Company name will be changed to Worley Limited, subject to the approval of members at the Annual General Meeting (AGM) in October 2019.