Canada’s SNC-Lavalin Group is buying British-based oil and gas services specialist Kentz Corp.
Montreal-based SNC said Monday it will pay C$2.1 billion (US$1.95 billion) in cash for London-listed Kentz.
SNC said it will finance the deal with a loan repayable with the proceeds from the sale of Alberta power transmission company Altalink.
Robert Card, SNC’s chief executive, said: “I think this really sets the foundation for us” in the oil and gas space. This seems to be an ideal fit.”
SNC-Lavalin has been struggling to put behind it a huge bribery scandal.
Its shares jumped 3% Monday to C$53.93 on the Toronto Stock Exchange.
Kentz has a backlog of about US$4.2 billion.
Among its clients for oil and gas projects are Shell, ExxonMobil and Total SA.
In Australia, Kentz is working on five of the seven largest liquefied natural gas projects.
SNC, Canada’s biggest engineering firm, will have annual revenue of about $10 billion following the Kentz acquisition.
SNC is paying a premium of 33% based on the closing price of Kentz shares on Friday.
Kentz shares will be delisted from the London Stock Exchange following the SNC deal.