Canadian Consulting Engineer

Jacobs acquiring CH2M

August 3, 2017

Merger will create a US$15 billion global engineering firm.

In another blockbuster merger in the global consulting engineering world, Jacobs Engineering Group Inc. and CH2M HILL Companies Ltd. today announced that they have entered into a definitive agreement under which Jacobs will acquire all of the outstanding shares of CH2M in a cash and stock deal for approximately US$3.27 billion, including some US$416 million of CH2M net debt.

With existing revenues of US$10.7B, Jacobs says the new combined business will create a US$15B company. The news comes one month after the closing of Montreal’s SNC-Lavalin acquisition of WS Atkins, creating a $12B global engineering firm.

With revenues of US$4.4B and 20,000 employees, Colorado-based CH2M is a global design, engineering and program management firm. The company has 10 offices in Canada with locations in B.C. (Burnaby, Kamloops, Victoria), Alberta (Calgary, Edmonton), Manitoba (Winnipeg), Ontario (Kitchener, Ottawa, Toronto) and the Yukon (Whitehorse).

Headquartered in Dallas, Texas, Jacobs employs over 54,000 people and operates in more than 25 countries around the world, including Canadian locations in Vancouver, Calgary, Edmonton, Pickering and Toronto. The company is a global leader in the $300 billion transportation sector, which includes highways, rail, aviation and ports


CH2M has been identified as a top water design firm in the world. By leveraging CH2M’s technical expertise in water across Jacobs’ global operating platform and strong project delivery skills, the combined company is expected have a premier global water business.

“By increasing our industry reach and adding to our already extensive skills, this transaction enhances our value to our clients and bolsters Jacobs’ position as a premier consulting, design, engineering, construction, and operations and maintenance technical services firm,” said Steve Demetriou, Jacobs’ Chairman and CEO.

“We are delighted about the prospects of combining CH2M with Jacobs,” said CH2M Chairman and CEO Jacqueline Hinman. “Since late 2014, we’ve been transparent about our plans to pursue an ownership transition, providing sustained access to capital for growth.”

Jacobs expects to achieve US$150 million of annual run-rate cost savings by the end of the second year following the close of the transaction. Savings are expected to come from real estate, optimization of corporate operations, alignment of organizational structures, procurement and IT systems. Jacobs expects to incur approximately US$225 million in one-time costs to achieve these savings.

The transaction is expected to close in Jacobs’ fiscal 2018 first quarter.


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