Aker Solutions has completed the sale of the principal operations of its Process and Construction business area to Jacobs Engineering Group, one of the world's largest and most diverse providers of technical, professional and construction services.
Aker Solutions, a global oil services company providing engineering and construction services, technologies, product solutions and field-life solutions for the upstream oil and gas industry, intends to concentrate its future strategic efforts on its core oil and gas business.
As disclosed on 22 December 2010, the transaction does not include the US EPC centre in Houston, and the Union Construction business located in the US and Canada, which will all be part of the new Aker Contractors company. Aker Solutions also retains Aker Projects (Shanghai) Company Limited until such time as the requisite regulatory clearances in China have been obtained.
The transaction value is estimated to be approximately $913 million, subject to closing adjustments. The consideration will be settled in cash at completion. Completion is subject to relevant merger control clearances, but both parties expect to complete the transaction during the first quarter of 2011.
Øyvind Eriksen, executive chairman, Aker Solutions said: "In August, Aker Solutions announced the decision to separate the P&C business area from the Aker Solutions Group. Since then, we have explored alternative methods of separation, including an IPO and public listing. As the alternatives matured over the recent weeks, a sale to Jacobs evolved as the preferred solution industrially as well as financially.
"The prompt completion of this transaction and its positive financial effect, support our strategy to further concentrate Aker Solutions' capability as a strong and dedicated provider of engineering, technologies, solutions and services for the upstream oil and gas industry. This is a very good outcome for all parties."
With the sale of these businesses to Jacobs and the transfer of the Union Construction and EPC Centre US operations to the new Aker Contractors company, Aker Solutions' P&C business area has now been dissolved.
