CH2M, a Colorado-based engineering firm that has the contract to overhaul Baton Rouge’s sewer system, is being acquired by Jacobs Engineering Group for $3.27 billion, the Denver Business Journal reports.
CH2M landed a $78.6 million contract for the local sewer work last year. The firm has an office in Baton Rouge and is Colorado’s largest private company.
Texas-based Jacobs Engineering will acquire all of the outstanding shares of CH2M for $2.85 billion in cash and stock, and will acquire roughly $416 million of CH2M net debt.
Jacobs, which recently moved its headquarters to Dallas from California, aims to grow in sectors it had already targeted and where CH2M is currently leading.
CH2M already has a major role in the United Kingdom, while Jacobs has a limited presence there. The Colorado company is overseeing the refurbishment of the Palace of Westminster in London, better known in the U.S. as the Houses of Parliament.
CH2M—formerly known as CH2M Hill—was ranked at No. 494 in the latest Fortune 500 ranking of the nation’s biggest companies. The company posted revenue of $5.236 billion in 2016, down from $5.362 billion the year before. Across the last 12 months, revenue was about $4.4 billion, according to today’s acquisition announcement.
