Jacobs Sheds Energy and Chemicals Unit for $3.3B

Technical services firm Jacobs Engineering Group Inc. recently entered into a definitive agreement to divest from its Energy, Chemicals, and Resources (ECR) business segment to Australian engineering firm Worley Parsons Limited, a company press release announced Sunday. 

The $3.3 billion transaction will enable Jacobs to hone its focus on high margin, high growth segments, including Aerospace, Technology, Environmental & Nuclear (ATEN) and Buildings, Infrastructure & Advanced Facilities (BIAF). 

“The increased financial flexibility we gain from this sale better positions us to invest in our ATEN and BIAF businesses, focusing our premier talent and expertise on technology, innovation, and sustainable solutions that are priorities for our infrastructure and government services clients,” said Steve Demetriou, chairman and chief executive officer of Jacobs, said in a statement. “These capabilities, along with our strong backlog and efficient global platform, will further strengthen our global leadership in these segments to drive meaningful value creation.”

Jacobs said it plans to use proceeds from the sale to pay off some of its floating-rate debt and to support growth investments. 

WorleyParsons operates in the chemicals, minerals, metals, infrastructure, power, and hydrocarbons markets. 

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