URS announces approved offer for Scott Wilson

San Francisco, US-based engineering consultant URS Corporation has announced a UK£ 161 million (US$ 240 million) offer top acquire UK-based consultant Scott Wilson. Although the offer has been approved by Scott Wilson's board, there may be a counter offer from CH2M Hill, another US consultant, which has also been through the due diligence process on Scott Wilson.

According to URS, the acquisition would expand its footprint in the UK across several markets with long-term growth prospects, including transport infrastructure, ports and harbours. It also says the deal would increase its global presence.

URS chairman & CEO Martin M. Koffel said, "Upon completion of this transaction, we expect URS would be among the top ten UK engineering firms by revenue, with the added scale and expertise to perform some of the largest and most complex infrastructure assignments in the country."

He added, "Scott Wilson's market sectors are well aligned with URS' existing focus.

Scott Wilson's Board has recommended the URS offer to its shareholders, which it says represents a +76% premium on its share price at the close of trading on Friday, the last business day prior to the announcement.

Scott Wilson chairman Geoff French said, "In an increasingly global marketplace, the Board believes that a combination with URS will significantly enhance Scott Wilson's business opportunities and represents a compelling proposition for our shareholders, clients and employees."

Counter offer?

However, on the same day that the URS offer was announced, rival consultant CH2M Hill said it was considering whether to make a cash offer of its own. The company said that it had already carried out due diligence on Scott Wilson.

Scott Wilson has more than 5500 employees and offices in 80 locations around the world. Its key regional branches are in the UK, Hong Kong, New Delhi, Warsaw, Bahrain and Dubai. Last year it had revenues of UK£ 240 million (US$ 507 million) and a net profit of UK£ 13.6 million (US$ 20.3 million). Some 72% of the company's revenues last year were generated in the UK.