Monday was Day One under new ownership for one of Colorado’s largest private companies, CH2M.
Jacobs Engineering Group, a Dallas-based engineering firm, completed its $3.3 billion acquisition of the Douglas County company that has managed massive projects such as constructing the third lane of the Panama Canal.
The CH2M brand will fade away but not immediately because the combination of the two powerhouse engineering consulting firms is all about growth, said Jacobs’ chief financial officer Kevin Berryman, in town Monday to meet with employees. Combined, Jacobs and CH2M employ about 74,000 people worldwide, including “2,200 in the state, which is going to grow over time,” he said.
“We are excited about what CH2M provides to us and the collective organization, the capabilities we did not have,” Berryman said. “This is a complementary transaction.”
More specifically, Jacobs plans to heavily expand CH2M’s expertise in water infrastructure and environment to other parts of the world, such as Africa, where CH2M isn’t as prevalent.
The Denver area also will become Jacobs’ global infrastructure hub, led by Greg McIntyre, who joined CH2M in 1981 and who oversaw the company’s global business in water, environment, transportation and social infrastructure.
Since the acquisition was announced in August, Jacobs officials have been working on a plan and meeting with CH2M employees. The combined company will focus on three business lines: Aerospace, Technology, Environmental and Nuclear; Buildings, Infrastructure and Advanced Facilities; and Energy, Chemicals and Resources.
Jacobs, which paid CH2M shareholders 60 percent cash and the rest in Jacobs stock per CH2M share, said the deal will have a one-time $225 million impact on costs but from here on out, the combined company will see $150 million in annual savings to consolidate overlapping operations, from real estate to IT systems.
Jacobs, founded in 1947, moved to Dallas from California last year. Some of the company’s better-known Colorado projects are FasTracks, Denver International Airport and multiple projects with the Colorado Department of Transportation.
Former CH2M board member Barry Williams joins the Jacobs board of directors. As previously announced, Jacqueline Hinman, CH2M’s CEO since 2013, has left the company. Her last day was Friday. Hinman recently joined a city committee to explore the feasibility of Denver hosting a future Winter Olympics. She will remain on the committee, according to Denver city officials.
