Atkins Joins SNC-Lavalin Team
Canada’s SNC-Lavalin Group has completed the acquisition of WS Atkins plc, a UK-based design, engineering and project management consultancy.
Together, the two companies will have over 50,000 employees and annual revenues of approximately CAD 12 billion, according to SNC-Lavalin.
The acquisition is expected to improve SNC-Lavalin’s quality of earnings, adding approximately CAD 3.5 billion of consistent comparatively high-margin revenue, with ongoing revenue from framework and master service agreements, providing long-term repeat business, the company said.
“SNC-Lavalin is continuing to deliver on its strategy of establishing itself in the top 3 in our industry globally. By combining our two highly complementary businesses, we are solidifying SNC-Lavalin’s position as one of the largest fully integrated professional services firms in the world, while improving our margins and balancing our business portfolio,” said Neil Bruce, President & CEO of SNC-Lavalin.
Heath Drewett, Group Finance Director and Executive Director of Atkins, now becomes President of Atkins, SNC-Lavalin’s fifth business sector, and a member of SNC-Lavalin’s executive committee, reporting directly to Neil Bruce.
“Joining SNC-Lavalin will provide us with the ability to offer our clients and employees the enhanced scale, capabilities, expertise and other benefits that come with being part of a larger and stronger global company,” said Drewett.
“At the same time, we look forward to bringing our own unique project management, design, consulting and engineering capabilities to SNC-Lavalin’s clients. The result will be a more agile and responsive company that better meets client needs and creates cross-selling opportunities.”
Over the coming months, teams from both organizations will work together to integrate both companies in order to create value for all stakeholders and realize expected synergies from the acquisition.
The acquisition is expected to deliver approximately CAD 120 million in cost synergies – approximately CAD 30 million from SNC-Lavalin and CAD 90 million from Atkins – by the end of the first full financial year. These synergies would mainly include eliminating corporate and listing costs, optimizing corporate and back-office functions and shared services, streamlining IT systems, and real estate consolidation where appropriate.