URS increases offer for Scott Wilson, CH2M Hill withdraws

02 July 2010

URS has announced an improved UK£ 223 million (US$ 333 million) offer to acquire UK-based consultant Scott Wilson. Rival bidder CH2M Hill has withdrawn its UK£ 189 million (US$ 282 million) bid for the company following the announcement. URS' original bid for Scott Wilson valued the company at UK$ 161 million (US$ 240 million).

The original URS offer represented a +76% premium on Scott Wilson's share price on 25 June, the last business day before the takeover was announced. However, the bidding war that has ensued between URS and CH2M Hill over the company ha driven the price higher. However, the improved offer still represents an +11% premium on Scott Wilson's share price on 30 June, the final business day before it was announced.

The improved offer has been recommended to Scott Wilson's shareholders by its board.

Martin Koffel, the chairman and CEO of URS said, "We are pleased to have reached agreement with the Scott Wilson board on an increased offer for the company. We continue to believe that the combination of URS and Scott Wilson will create a global business with the financial resources to invest in further growth for the benefit of the enlarged group's clients and employees."

Commenting on the decision to withdraw from the bidding race, CH2M Hill chairman and CEO Lee McIntire said, "While Scott Wilson is an excellent company and an attractive cultural fit with CH2M Hill, it is not felt to be value enhancing at the current valuation."

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.