SNC-Lavalin to buy British oil services company for C$2.1 B

|About: SNC Lavalin Group Inc.A (SNCAF)|By:, SA News Editor

SNC-Lavalin (SNCAF) agrees to acquire U.K.-listed engineering energy service firm Kentz Corp. (KNTZF) for ~C$2.1B (US$1.95B), bolstering the Canadian company's global engineering and construction operations in the oil and gas sector.

SNC expects the deal to boost its overall backlog by C$4.9B, ~78% of which is expected to come from lower/higher margin services-based contracts, and looks to raise the percentage of its annual revenue derived from oil and gas services to ~24% from 7%.