Jacobs Engineering Group Inc. (NYSE:JEC) announced today that its subsidiary, Jacobs Projects (Shanghai) Co., Ltd., has signed an option agreement with Suzhou Han’s Chemical Engineering Co., Ltd. (SHCE) in China in which Jacobs has the opportunity to acquire SHCE upon the satisfaction of certain conditions.
SHCE has two specialty Class A design licenses in China’s Chemical, Petrochemical and Pharmaceutical (CPP) industry, which allow the firm to provide engineering design, procurement and project management services for all chemical and petrochemical projects in China. Jacobs’ Shanghai operation currently has an industry Class B design license for the CPP industry in China, and has successfully executed a substantial number of EPCM projects for global clients investing in China.
In addition to enhancing Jacobs’ capabilities by bringing the Class A licenses, if Jacobs were to acquire SHCE, it would also add an engineering office in Suzhou, Jiangsu Province, and bring Jacobs’ personnel count in China to over 600. These combined resources would enable Jacobs to offer customers in China a complete spectrum of services for all types of chemical and petrochemical projects.
Upon making the announcement, Jacobs Group Vice President Tom Quinn stated, “The opportunity to acquire SHCE represents a significant milestone for Jacobs’ growth strategy in China and, if the acquisition is successfully completed, it would further develop our service offerings to clients, strengthen our ability to compete for projects, and provide more opportunities for our employees.”Jacobs is one of the world's largest and most diverse providers of technical, professional, and construction services. Statements made in this release that are not based on historical fact are forward-looking statements. Such statements relate to a variety of matters, including but not limited to, the timing and expected completion of the proposed transaction. We base these forward-looking statements on management’s current expectations as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain. There are a variety of factors that could cause actual results to differ materially from these forward-looking statements, including but not limited to: risks relating to the consummation of the proposed transaction, including the risk that the closing conditions of the transaction will not be satisfied; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction; litigation relating to the proposed transaction or its completion; unexpected costs, charges or expenses resulting from the proposed transaction or its completion; any operational, cultural or financial difficulties associated with the integration of the businesses; and any changes in general economic and/or industry-specific, or company specific conditions. For a description of some of the additional factors which may occur that could cause actual results to differ from these forward-looking statements please refer to our 2012 Form 10-K, and in particular the discussions contained under Items 1 - Business, 1A - Risk Factors, 3 - Legal Proceedings, and 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations. We do not undertake to update any forward-looking statements made herein.
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