MONTREAL, August 22, 2014 /PRNewswire/ --
A key milestone in SNC-Lavalin's ongoing transformation
into a global Tier-1 engineering and construction
company
SNC-Lavalin Group Inc. (TSX: SNC) is pleased to announce that it
has completed its acquisition of Kentz Corporation Limited, a
global company with 15,500 employees operating in 36 countries.
Kentz provides industry-leading engineering, construction
management and technical support services to clients in the oil and
gas sector.
The acquisition of Kentz supports SNC-Lavalin's ongoing
transformation into a global Tier-1 engineering and construction
(E&C) company. The transaction creates a group with
approximately 45,000 employees, annual revenues of about
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 world's
most dynamic growth markets, including the Middle East, North
America, Latin America and
Asia-Pacific.
"SNC-Lavalin is thrilled to welcome the employees of Kentz, who
are the heart and soul of the remarkable company we are acquiring
today," said Robert G. Card,
President and CEO, SNC-Lavalin Group Inc. "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."
Transformational growth in oil and
gas
The acquisition of Kentz transforms SNC-Lavalin's oil and gas
capabilities, creating a group of approximately 20,000 high-caliber
employees with industry leading expertise for large and complex
projects in the upstream, liquefied natural gas (LNG),
unconventional (shale gas and oil sands), pipelines, offshore
jackets and steam-assisted gravity drainage (SAGD) sectors.
"We have now begun implementing our plan, which aims to ensure
our teams are combined efficiently, respectfully and as rapidly as
possible," said Neil Bruce,
President, Resources, Environment & Water, SNC-Lavalin Group
Inc. "We will be bringing together the best capabilities of our two
firms for the direct benefit of our clients. Our goal will be to
build strong and lasting relationships with our customers through
consistently delivering on our commitments and providing the best
mix of value and services."
Kentz will be incorporated into SNC-Lavalin while simultaneously
integrating SNC-Lavalin's current Oil & Gas business into
Kentz's operations. Christian Brown,
Kentz's Chief Executive Officer, now becomes President, Oil &
Gas, SNC-Lavalin Group Inc. Mr. Brown will continue to be stationed
in Houston, Texas, and will report
directly to Neil Bruce.
"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," said
Christian Brown. "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."
SNC-Lavalin paid £9.35 (C$17.13)
per share for a total purchase price of approximately £1.2 billion
(C$2.1 billion). Kentz shareholders
voted in favour of SNC-Lavalin's offer at a meeting convened by
order of the Court and an Extraordinary General Shareholders
Meeting, both held on August 11,
2014. The offer was structured as a Scheme of Arrangement
and the Scheme Court Hearing was held on August 21, 2014. Following the sanction of the
Court, the acquisition became effective in accordance with its
terms on August 22, 2014.
Forward-looking statements
This press release contains statements that are or may be
"forward-looking statements" or "forward-looking information"
within the meaning of applicable securities laws. All statements
other than statements of historical fact included in this press
release may be forward-looking statements. Without limitation, any
statements preceded or followed by or that include the words
"targets", "plans", "believes", "expects", "aims", "intends",
"will", "should", "could", "would", "may", "anticipates",
"estimates", "synergy", "cost-saving", "projects", "goal" or
"strategy" or, words or terms of similar substance or the negative
thereof, are forward-looking statements. Forward-looking statements
include statements relating to the following: (i) future capital
expenditures, expenses, revenues, earnings, economic performance,
indebtedness, financial condition, losses and future prospects; and
(ii) business and management strategies and the expansion and
growth of SNC-Lavalin or Kentz's operations and potential synergies
resulting from the transaction.
These forward-looking statements are not guarantees of future
financial performance. Such forward-looking statements involve
known and unknown risks and uncertainties that could significantly
affect expected results and are based on certain key assumptions.
Many factors could cause actual results to differ materially from
those projected or implied in any forward-looking statements. Due
to such uncertainties and risks, readers are cautioned not to place
undue reliance on such forward-looking statements, which speak only
as of the date hereof. All subsequent oral or written
forward-looking statements attributable to SNC-Lavalin or any of
its directors, officers or employees or any persons acting on their
behalf are expressly qualified in their entirety by the cautionary
statement above. SNC-Lavalin disclaims any obligation to update any
forward-looking or other statements contained herein, except as
required by applicable law.
About SNC-Lavalin
Founded in 1911, SNC-Lavalin is one of the leading engineering
and construction groups in the world and a major player in the
ownership of infrastructure. From offices in over 50 countries,
SNC-Lavalin's approximately 45,000 employees provide EPC and EPCM
services to clients in a variety of industry sectors, including oil
and gas, mining and metallurgy, environment and water,
infrastructure and power. SNC-Lavalin can also combine these
services with its financing and operations and maintenance
capabilities to provide complete end-to-end project solutions.
http://www.snclavalin.com
For further information:
Media:
Lilly Nguyen
Public Relations Manager,
Global Corporate Communications
SNC-Lavalin Group Inc.
+1-514-393-8000, ext. 54772
lilly.nguyen@snclavalin.com
Investors:
Denis Jasmin
Vice-President, Investor Relations
SNC-Lavalin Group Inc.
+1-514-393-8000, ext. 57553
denis.jasmin@snclavalin.com
(SNC.)