CH2M shareholders are scheduled to vote Dec. 13 on the company’s proposed buyout by Jacobs Engineering, according to a new filing with the U.S. Securities and Exchange Commission.
The shareholder meeting will be held at company headquarters in Englewood, Colo., CH2M said in a Nov. 13 10-Q filing. Stockholder approval is one of the final requirements in the $3.27 billion sale, which CH2M expects will be completed by the end of this year.
CH2M filed the shareholder meeting paperwork with the SEC on Nov. 9 and then started mailing notices and proxy statements the next day. Proxy statements typically allow stockholders to vote without attending the meeting in person.
The deal, announced in August, would make CH2M a wholly owned subsidiary of Jacobs. In September and October, the merger parties won several necessary regulatory approvals from the United States, Canada, and European Commission, CH2M said.
Jacobs does not need to hold a shareholder vote of its own in order for the deal to go through, according to spokesman Jonathan Doros.
The merger of CH2M and Dallas-based Jacobs Engineering, both international engineering firms that do business with the Department of Energy, would create a $15 billion company. Jacobs employs over 54,000 people internationally.
During the third quarter of 2016, CH2M began a corporate restructuring that included cutting its workforce by about 1,500 people. The company currently has roughly 20,000 employees worldwide. As part of its consolidation, CH2M in 2016 went from four to three business units, with Energy Department nuclear cleanup contracts moved to the national governments group.
CH2M has a key role in the DOE cleanup circuit, with sizable contracts at the Hanford Site in Washington state and Oak Ridge Reservation in Tennessee, among other locations. A CH2M-led team in October took over remediation of the Paducah Gaseous Diffusion Plant in Kentucky, under a contract worth $1.5 billion over a decade. A CH2M-AECOM venture lost out on the $4.7 billion liquid waste contract at the Savannah River Site in South Carolina, but has protested the award to a partnership led by BWX Technologies.
While Jacobs’ role in the DOE complex is not as big as that of CH2M, it is still significant. For example, Jacobs is part of a team, with Honeywell and Stoller Newport News Nuclear, that in May won a 10-year contract worth up to $5 billion dollars to operate the Nevada National Security Site.
CH2M’s latest earnings filed its last earnings report in August. The company’s website does not currently list a date for the next earnings release, and CH2M did not respond to a request for comment.
Jacobs is expected to release its quarterly earnings results on Nov. 21 prior to the market opening. Executives will hold a conference call with financial analysts at 10 a.m. Eastern time that day.
