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| WorleyParsons acquires Colt Companies Australian engineering services firm WorleyParsons announced the $A1.13 billion acquisition of the Colt Companies, a leading Canadian design and project services business. The acquisition creates a market leader in the high growth Canadian hydrocarbons market. The acquisition price represents a multiple of 9.7 times pro forma EBITDA of Colt for the 12 months ended 31 January 2007. On the assumption of a full year contribution by Colt to WorleyParsons, the pro forma accretion to the combined group's earnings per share for the 12 months to 31 December 2006 would be 16%. The acquisition is likely to complete in early March 2007. Colt is a multi-disciplinary design and project services business with impressive upstream and downstream hydrocarbons capabilities particularly in the growing oil sands sector. It has been in operation for more than 30 years and is one of the largest providers of these services in Canada. Colt employs approximately 4,600 people through its network of offices in Calgary, Edmonton, Sarnia, Toronto and Anchorage, Alaska. Canada boasts the world's second largest volume of oil reserves at 179 billion barrels, of which 98% are within the oil sands. Capital expenditure in the Canadian oil sands sector alone is forecast to exceed C$125 billion over the next decade if announced projects proceed. Canada is currently the largest supplier of crude oil and petroleum products to the US. It is forecast to grow from its position as the eighth largest producer of crude oil globally to become the fourth largest by 2015. Mr Larry Benke, President of Colt will be responsible for WorleyParsons Canadian operations and will be appointed, subject to completion of the acquisition, to the WorleyParsons Limited Board as an alternate director to Bill Hall. Key Colt senior management have committed to remain with WorleyParsons for a period of at least three years. The combined group will employ approximately 20,400 employees and operate in 97 offices in 30 countries. write your comments about the article :: © 2007 Construction News :: home page |