SNC-Lavalin Completes Acquisition of WS Atkins for USD2.68 Billion

Published: Apr 20 2017
Deal Summary

SNC-Lavalin Group Inc., a provider of engineering and construction services, has completed acquisition of WS Atkins plc, a consultancy company that provides design, engineering and project management services, for a purchase consideration of CAD3,600 million (USD2,681.42 million).

Under the terms of the acquisition, each WS Atkins shareholder received GBP20.8 (USD26.67) in cash per each WS Atkins share. The acquisition represents an enterprise value of CAD4,200 million (USD3,128.31 million), including the pension deficit. This represents an estimated purchase price multiple of 9.8x for the 12-month adjusted EBITDA post synergies and including pension deficit.

The acquisition was funded through a combination of equity and debt issuance, and supported by Caisse de depot et placement du Quebec (CDPQ), SNC-Lavalin’s largest shareholder. The funding includes a CAD1,500 million (USD1,117.25 million) loan from CDPQ, an CAD800 million (USD595.87 million) public bought deal offering, a CAD400 million (USD297.93 million) private placement with CDPQ, as well as a GBP300 million (USD384.63 million) term loan, and an approximately GBP350 million (USD448.74 million) draw on its current credit facility.

RBC Capital Markets LLC and Deloitte LLP acted as financial advisor while Norton Rose Fulbright LLP acted as legal advisor to SNC-Lavalin for the transaction.

Deal History:

Update: On June 26,2017, the shareholders of WS Atkins have approved the transaction. Of the total votes cast by WS Atkins shareholders, 97.4% were in favour of the transaction.

Announced: On April 20, 2017, SNC-Lavalin agreed to acquire WS Atkins for a purchase consideration of CAD3,600 million (USD2,681.42 million).

Planned: On April 3, 2017, SNC-Lavalin made a proposal to acquire WS Atkins at a price of GBP2,080 million (USD2,610 million).

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