URS Corporation (NYSE: URS) and Flint Energy Services Ltd. (TSX: FES) announced today that URS has completed its acquisition of Flint. Under the terms of the definitive agreement announced in February, Flint shareholders received C$25.00 per share in cash for each Flint share. The total equity value paid by URS was approximately C$1.24 billion (US$1.24 billion).
“We are pleased to have completed the acquisition of Flint, which significantly expands our presence in the oil and gas sector, and in particular the growing North American unconventional oil and gas segments,” said Martin M. Koffel, Chairman and Chief Executive Officer of URS. “URS is now able to provide our energy sector customers with a full range of engineering, procurement and construction services, which has been a longstanding strategic priority for URS and builds on our track record of expanding into high growth markets and further diversifying our revenue and backlog. We are delighted to welcome to URS more than 10,000 Flint employees, who expand our skilled team of professionals.”
Through the acquisition of Flint, URS has added a network of approximately 80 locations in North America that support many of the largest companies operating in the oil, oil sands and gas producing regions of Western Canada and in the Southwest, Appalachian and Rocky Mountain regions of the United States.
Flint has become the new Oil & Gas division of URS and will be led by W.J. (Bill) Lingard, Flint's former President and CEO, as the Division President. The Oil & Gas division will be based in Calgary, Alberta.
The transaction is expected to be accretive to URS' 2012 earnings, and to substantially increase URS' revenues from the oil and gas sector.
URS and Flint also announced that they have reached an agreement with Transfield Services Limited to continue Flint Transfield Services Limited (FT Services) as a 50/50 operations and maintenance joint venture between Transfield and the URS-owned Flint. FT Services, originally formed in 2006 as a 50/50 jointly owned company between Transfield and Flint, delivers operations and maintenance solutions to the oil and gas and petrochemical sectors in Canada.