A key milestone in SNC-Lavalin's ongoing transformation into a global
Tier-1 engineering and construction company
MONTREAL, Aug. 22, 2014 /CNW Telbec/ - 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
"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.
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.
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
For further information:
Public Relations Manager,
Global Corporate Communications
SNC-Lavalin Group Inc.
514-393-8000, ext. 54772
Vice-President, Investor Relations
SNC-Lavalin Group Inc.
514-393-8000, ext. 57553