Sep 13 2010
URS Corporation (NYSE: URS) today announced that the Company has completed its acquisition of Scott Wilson Group plc. (LSE: SWG). Under the terms of the transaction, Scott Wilson shareholders will receive 290 pence in cash for each Scott Wilson share.
The total equity value paid by URS for all outstanding shares equals approximately £218 million, or $336 million. The closing of the acquisition follows approval of the transaction by Scott Wilson’s shareholders on July 30, 2010, subsequent court approval in the U.K., and regulatory approvals in various jurisdictions.
The addition of Scott Wilson expands URS’ international presence by adding a network of 80 offices around the world, including offices in key regional centers such as London, Hong Kong, New Delhi, Warsaw and Dubai, and more than 5,500 employees. In the company’s 2010 fiscal year, which ended on May 2, 2010, Scott Wilson had revenues of approximately £340 million and net income of £13.6 million, which equate to approximately $523.6 million and $20.9 million, respectively.
“The acquisition of Scott Wilson opens the door to numerous new opportunities for URS in major international infrastructure markets,” said Martin M. Koffel, Chairman and Chief Executive Officer of URS. “URS now is among the top ten U.K. engineering firms by revenue, with capabilities in critical infrastructure markets, including transit, high speed rail, roads and bridges, airports, and ports and harbors. We also have expanded our capabilities in other key geographies outside of the U.K. and Continental Europe, such as China and India, two of the fastest growing economies in the world. With Scott Wilson’s technical depth and talented team of professionals around the globe, URS is well positioned to support public and private sector clients worldwide on their largest and most complex infrastructure assignments.”
Hugh Blackwood, former Group Chief Executive of Scott Wilson, has joined URS as a Vice President of URS Corporation and Senior Vice President, International Operations. He will oversee from London URS’ Infrastructure & Environment business for the U.K./Ireland, Europe, Middle East, India and China.
Mr. Blackwood commented: “From today, Scott Wilson becomes part of URS Corporation. We are looking forward to providing our clients with access to a larger global footprint and the ability to meet their needs across a wider range of services and sectors, including the nuclear power market, which is a key strength for URS. Our employees will be able to participate in larger and more complex projects, as well as benefit from further investment in new areas of expertise.”
In connection with the completion of the transaction, Scott Wilson’s shares have ceased to trade on the London Stock Exchange as of the close of trading on September 8. The transaction is not expected to have a significant impact on URS’ fiscal year 2010 results, but the Company expects that it will be accretive to earnings per share in fiscal year 2011 on a GAAP basis.
Scott Wilson’s operations will be incorporated into the Infrastructure & Environment business segment of URS.
Source: http://www.urscorp.com/