Jacobs to Acquire McDermott Engineers & Constructors

Jacobs Engineering Group Inc. announced that it has signed a letter of intent to acquire McDermott International, Inc.'s subsidiaries McDermott Engineers & Constructors (Canada) Limited, including Delta Catalytic, and Delta Hudson Engineering.

Officials did not disclose the terms, but they expect to close the transaction this fall, pending completion of due diligence and the execution of a definitive agreement.

McDermott Engineers & Constructors and Delta Hudson are included in McDermott's Industrial Operations segment. They provide engineering, construction, and maintenance services to various industries including upstream oil & gas, petroleum refining, petrochemicals, and chemicals. These companies are headquartered in Calgary, Alberta, and have operations in Canada, the United Kingdom, and the United States.

In making the announcement, McDermott Chairman of the Board and Chief Executive Officer Bruce W. Wilkinson stated, "The potential sale of these companies supports our focus on our core marine construction, power generation, and government businesses. Additionally, their acquisition by Jacobs will provide them new opportunities as part of one of the world's leading technical professional services companies."

Jacobs President and Chief Executive Officer Noel Watson added, "We are confident that Delta's skills, experience, geography, and client base complement our current portfolio and will improve our market position and ability to deliver value to our clients. In particular, Delta brings us and our clients enhanced capability in today's robust upstream oil & gas market."

McDermott International, Inc. is a leading worldwide energy services company. The company's subsidiaries manufacture steam-generating equipment, environmental equipment, and products for the U.S. government. They also provide engineering and construction services for industrial, utility and hydrocarbon processing facilities, and to the offshore oil and natural gas industries.

Jacobs Engineering Group Inc. is one of the world's largest providers of professional technical services. With more than 20,000 home office employees, the company offers full-spectrum support to industrial, commercial, and government clients in diverse markets. Services include scientific and specialty consulting as well as all aspects of design, construction, and operations & maintenance.