SNC-Lavalin closes sale of oil and gas businessCompanies & People Energy gas Kent Kentech oil resources SNC-Lavalin
The new owner is rebranding.
SNC-Lavalin completed the closing of the sale of its oil and gas resources business on Aug. 15, following receipt of Saudi Arabian regulatory approval.
The consulting engineering firm previously announced it had closed the sale of a substantial portion of the business on July 29, pursuant to its binding agreement with Kentech Corporate Holdings, first announced on February 9, 2021. The full closing was expected by the end of the third quarter (Q3) of 2021.
“The closing of the sale of all activities related to our resources oil and gas business allows us to focus on our strategic direction,” says Ian L. Edwards, president and CEO of SNC-Lavalin. “Our business is now realigned on growing our high-potential core engineering services, which includes the engineering, design, project management, nuclear and infrastructure services segments. I thank all the resources oil and gas employees for their dedication and hard work over the years and wish them much success with Kentech.”
The transaction is expected to generate a non-cash gain on the sale in excess of the fair value write-down, after accounting for the elimination of foreign exchange cumulative translation adjustments included in the historical carrying amounts of the disposed oil and gas business.
With the acquisition, Kentech is now relaunching as Kent.