Ogier in Jersey have assisted Kentz Corporation, the holding company of the Kentz engineering and construction group, on its acquisition by SNC-Lavalin Group Inc. for an overall purchase price of approximately £1.2 billion. Kentz Corporation is a global engineering specialist solutions provider, with 15,500 employees operating in 36 countries worldwide. They have provided Engineering, Construction and Technical Support Services to clients in the energy and resources sectors for more than 90 years.SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure.
The acquisition of Kentz transforms SNC-Lavalin's oil and gas capabilities, with end-to-end expertise for large and complex projects in the upstream, liquefied natural gas, unconventional (shale gas and oil sands), pipelines, offshore jackets and steam-assisted gravity drainage sectors.The acquisition of Kentz by SNC-Lavalin is the most recent in a surge of high-value takeovers of listed companies.
This year, the Ogier corporate team has also advised Al Mirqab Capital SPC on its £924 million acquisition of Heritage Oil, an oil and gas production and exploration company formerly listed on the London and Toronto stock exchanges, and the same Ogier team is now working with AbbVie Inc. on its proposed takeover of pharmaceutical firm Shire plc for a consideration of approximately £32 billion, a deal that is set to be one of the largest in terms of deal value for many years. Commenting on these transactions, Sara Johns, Managing Associate at Ogier said "These deals are illustrative of the real upsurge of confidence in the markets.
Companies are keen to grow by strategic acquisition and blue-chip deal value seems to be holding. In most cases, the deal format is a familiar one, but Heritage Oil, Kentz and Shire have all been structured as acquisitions of a Jersey-incorporated, listed company through a scheme of arrangement involving the sanction of the Jersey court.
Although tax and regulatory factors will often drive deal structure, we see the use of the scheme of arrangement in this type of transaction as a trend that is set to continue."Commenting on the Kentz transaction, Simon Dinning, Ogier Group partner said "As a firm we have worked with Kentz on a variety of transactions over a number of years. This exciting combination represents another milestone for the company which will undoubtedly lead to continued success and growth."