SNC-Lavalin to acquire Kentz Corporation for $ 1.95 bn

SNC, Canada's biggest engineering and construction company, has reached an agreement to acquire the UK-based Kentz Corporation Ltd for Canadian Dollars (CD) 2.1 billion ($1.95 billion). Kentz is a global oil & gas services company, with 14,500 employees operating in 36 countries who provide engineering, construction and technical support services to clients in the oil & gas sector.
 
The proposed acquisition of Kentz is fully aligned with SNC-Lavalin’s strategy of becoming a global tier-1 engineering and construction (E&C) services firm. The addition of Kentz’s capabilities will make SNC-Lavalin a leading global E&C player in the oil & gas sector, with a greater presence in key growth regions, including the Middle East, North America and Asia Pacific, with a significant presence in Australia. The acquisition also meets the strategic priority of balancing the company’s risk profile by significantly raising the percentage of revenues it derives from services. This has been supported by discussions between both parties and a robust due diligence process.
 
“We look forward to adding Kentz to our group and significantly strengthening our capabilities in the oil & gas sector. We are excited by the prospect of merging the excellent capabilities of our two oil & 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. This proposed acquisition and the agreement to sell AltaLink are important milestones in our stated strategy for growth. Together, they give us confidence to increase our focus on the disposition of other mature assets,” said Robert G Card, President and CEO, SNC-Lavalin Group Inc.
 
Christian Brown, CEO, Kentz, added, “Our track record in providing complex engineering and construction solutions to the energy sector globally, has evolved considerably from our first international projects in the 1970s, and many of the people instrumental to our growth remain with us today. 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.”