SNC-Lavalin Group Inc.has announced the closing of CAD880 million (US$647 million) public offering of subscription receipts and US$400 million (US$294 million) private placement of subscription receipts that will be used to finance the anticipated adquisiton of WS Atkins plc.

Prior to closing, the syndicate of underwriters, co-led by RBC Capital Markets, TD Securities and BMO Capital Markets, and including Scotia Capital Inc., National Bank Financial Inc., CIBC World Market Inc., HSBC Securities (Canada) Inc., BNP Paribas (Canada) Securities Inc., Merrill Lynch Canada Inc., Desjardins Securities Inc., Citigroup Global Markets Canada Inc., Raymond James Ltd. and Canaccord Genuity Corp., exercised their over-allotment option in full, resulting in an issuance for gross proceeds of US$80 million.

As we reported in April 24, SNC-Lavalin Group Inc. reached an agreement with WS Atkins plc to acquire the entire issued and to be issued share capital of Atkins for £20.8 (US$22.3) per share in cash, representing an aggregate cash consideration of CAD3.6 billion (US$2.7 billion).

The acquisition represents an enterprise value of CAD4.2 billion (US$3.11 billion), including the pension deficit. This represents an estimated purchase price multiple of 9.8x for the 12-month adjusted EBITDA post synergies and including pension deficit.

Headquartered in the UK, Atkins is a consultancy in design, engineering and project management, with a leadership position across the infrastructure, transportation and energy sectors. Tracing its roots back to 1938, Atkins today has 18,000 employees with revenues of approximately £2.0 billion (US$2.56 billion) in 2016, and is geographically diversified in the US, Middle East and Asia, together with an important position in the UK and Scandinavia.