SNC-Lavalin Group Inc. has completed its acquisition of Kentz Corp. Ltd for a total purchase price of approximately £1.2 billion (C$2.1 billion).
In a statement released on its website, SNC-Lavalin’s said that the acquisition of Kentz supports the company’s ongoing transformation into a global Tier-1 engineering and construction company.
The transaction creates a group with approximately 45 000 employees, annual revenues of around C$10 billion and a backlog of roughly C$13 billion as per 2013 figures. The combined company will also have a strong position in the Middle East, North America, Latin America and Asia-Pacific.
Robert G. Card, President and CEO, SNC-Lavalin Group Inc., said: “SNC-Lavalin is thrilled to welcome the employees of Kentz, who are the heart and soul of the remarkable company we are acquiring today […] We expect that our combined capabilities will give us one of the best broad-based service offerings in the E&C industry, while expanding our presence in key growth markets.”
Complex oil and gas projects
The acquisition of Kentz creates a group of approximately 20 000 high-calibre employees with industry leading expertise for large and complex projects in the upstream, LNG, unconventional (shale gas and oil sands), pipelines, offshore jackets and steam-assisted gravity drainage (SAGD) sectors.
Kentz will be incorporated into SNC-Lavalin while simultaneously integrating SNC-Lavalin’s current oil and gas business into Kentz’s operations. Christian Brown, Kentz’s Chief Executive Officer, now becomes President, Oil & Gas, SNC-Lavalin Group Inc.
Mr Brown said: “Joining SNC-Lavalin will provide us with the ability to execute larger scopes for major projects, and enhance our access to new geographies in both North America and Latin America […] We look forward to bringing our clients complete end-to-end solutions for their projects by merging SNC-Lavalin’s strong front-end engineering and design capabilities with our industry-leading construction management, commissioning and operations capabilities.”
Adapted from press release by Callum O'Reilly