July 10, 2014 by STAFF REPORT
SNC-Lavalin Group Inc. has reached a cash agreement with Kentz Corp. Ltd. to acquire the global oil and gas services company headquartered out of St. Helier, N.J.
Kentz has more than 14,500 employees operating in 36 countries and provides engineering, construction and technical support services to the oil and gas sector.
The proposed acquisition of Kentz is a key component in SNC-Lavalin’s goal of becoming a global Tier-1 engineering and construction services firm. The addition of Kentz will provide SNC Lavalin with a greater presence in Australia and key growth regions, including the Middle East, North America and Asia Pacific.
The transaction will raise SNC-Lavalin’s overall backlog by $4.9 billion. It will also create annual cost savings of about $50 million by the end of the first full financial year after closing. The acquisition should be completed in the third quarter of this year.
“We are excited by the prospect of merging the excellent capabilities of our two oil and gas teams under the leadership of Christian Brown, Kentz’s CEO, which will create a world-class team inside of SNC-Lavalin to better serve our combined clients worldwide,” said Robert Card, president and CEO of SNC-Lavalin Group Inc.
Christian Brown, CEO of Kentz, added that his company believes the agreement with SNC Lavalin recognizes the value of Kentz’s future prospects, world-class client base and excellent people. “We have a bright future and I believe that SNC-Lavalin’s technical abilities and scale can support our continued success and bring further benefits to our employees, clients, and partners.”