Jacobs Engineering on Tuesday said it would pay £250 million ($302 million) to acquire the nuclear branch of the Scotland-based John Wood Group.
The deal is expected to be sealed in the first quarter of 2020, pending regulatory approval in the United Kingdom according to the companies.
“This acquisition brings deep technical expertise with unique engineering and scientific skills and a portfolio supporting major national programs in nuclear defense systems, new build and operations and decommissioning,” the Jacobs release says. “The transaction enhances Jacobs’ capabilities and margin profile of its existing $1.2 billion nuclear portfolio and supports its sustainability agenda managing technically complex projects in cleaner energy, nuclear clean-up and environmental remediation.”
The Wood nuclear business employs more than 2,000 workers and is expected to produce $285 million in revenue this year. Its sale will help Wood cut its debt and “take a significant step towards achieving its target leverage policy,” the company said in its own statement.
The Wood Group provides project, engineering, and technical services around the world, with a focus on the energy industry. It has over 60,000 employees in more than 60 nations.
Wood’s operations cover the full nuclear life cycle, including decommissioning and radioactive waste management. In April, it was among six corporate teams selected to compete for more than $500 million worth of decommissioning work at the former Dounreay fast-reactor site in Scotland. It also holds multiple awards for the Sellafield nuclear processing and cleanup site in Cumbria, including a contract valued at up to $1 billion over two decades for engineering design.
Jacobs said the acquisition should further enhance its Aerospace, Technology, and Nuclear branch. The Dallas-based company has been aggressive in expanding this business, paying more than $3 billion for its 2017 acquisition of CH2M. That made Jacobs, among other things, the owner of a major environmental remediation provider for the U.S. Energy Department’s Hanford Site in Washington state.
Industry sources have said recently Jacobs might also be eyeing some or all of financially troubled rival Fluor. One source said Tuesday Jacobs is not necessarily finished with acquisitions.
Jacobs has scheduled a conference call on the Wood deal for 10 a.m. Eastern time today.
