NYSE-listed technical professional services firm Jacobs Engineering Group Inc. has acquired majority ownership of Delhi-based Consulting Engineering Services India Pvt Ltd for an undisclosed amount. But back-of-the-envelope calculations show that the deal can be well over Rs 500 crore, making it one of the largest buyouts in Indian engineering services space.

Consulting Engineering Services (India) is engaged in services related to power, infrastructure and civil engineering in India. The firm employs more than 2,000 people and provides a range of solutions in infrastructure development, planning, engineering and construction management.

For the year ended March, 2010, the company had a total income of Rs 212.3 crore with EBITDA of Rs 48 crore and net profit of Rs 30 crore. Assuming a valuation multiple of 10x EBITDA for FY11, the deal can be easily more than Rs 500 crore or $110 million mark, according to VCCircle estimates.

Jacobs, with 2010 revenues of close to $10 billion, is one of the world’s largest providers of technical, professional and construction services. The firm already has a presence in India for almost two decades now, having acquired Humphreys and Glasgow, which started operating in India from 1962.

The combination of Jacobs and CES nearly doubles Jacobs’ existing resources and capabilities in India to more than 4,500 employees, and expands its presence in other regions in Asia and the Middle East.

Jacobs’ president & CEO Craig Martin said, “This combination makes us one of the largest consulting, engineering and construction forces in India. This transaction fortifies our resources to address the strong, emerging infrastructure market in India and other regions in Asia and the Middle East.”

Chairman and managing director of CES, SS Chakraborty, said, “CES and Jacobs have collaborated for years. Our existing relationship, along with strong synergies in our companies, provides a solid foundation on which to build and move forward as one company.”

In December, 2009, Jacobs had acquired TYBRIN Corporation and in February, 2010, it acquired Jordan, Jones and Goulding, Inc.

Leave Your Comment(s)