Jacobs Engineering Group Inc. (JEC - Get Report) will sell off its energy, chemicals and resources business to WorleyParsons Ltd. (WYGPY) in a $3.3 billion deal, the companies announced on Sunday, Oct. 21.
The sale will include $2.6 billion in cash and $700 million in shares of Australia-based WorleyParsons.
After Texas-based Jacobs divests, it will focus "solely" on more profitable businesses such as aerospace, technology, nuclear, infrastructure and advanced facilities segment, the company said in a press statement.
"For Jacobs, this transaction marks an inflection point in our portfolio transformation focused on more consistent, higher-margin growth as a leader solving the world's critical challenges," said Jacobs CEO Steve Demetriou, adding that the sale will give Jacobs the "financial flexibility" needed to focus on the higher performing businesses.
Jacobs also plans to partially use the $2.6 billion to pay down floating-rate debt, according to the company.
Shares of Jacobson were rising 6.5% on Monday. The company will report its earnings results for 2018 on Nov. 20.
The sale is set to make WorleyParsons the largest global provider of professional services in energy and resources, according to Reuters, and give Jacobs an 11%t stake in the company.
Jacobs had $15 billion revenue last year and has a workforce of 77,000.