The sale forms part of the Company’s strategy to become a leading professional services and project management company, and generate consistent earnings and cash flow
SNC-Lavalin (TSX:SNC) today announced that it has entered into a definitive agreement to sell its South African Resources business to local management. The sale forms part of the Company’s strategy to become a leading professional services and project management company, and generate consistent earnings and cash flow.
The South African Resource business has around 1,800 employees, and primarily services construction and site maintenance clients. The sale and exit of this business follows the closure and exit in March of Valerus, a non-core, mid-stream oil and gas production and processing facilities business based in Houston.
“We have undergone a full review of our Resources business, and have been taking actions to align with our overall strategic direction and focus on our high potential Engineering Services. The sale of our South African Resources business is another important step in this direction. We will be providing a further update on the plan for our Resources business at our Q2 results,” said Ian Edwards, President and CEO, SNC-Lavalin Group Inc. ‘’While the South African Resources business no longer fits with our strategic path, we wish the team success going forward.’’
The transaction is subject to conditions precedent, including receipt of the approval of the exchange control authorities of the South African Reserve Bank to the transaction, and is expected to close in the coming weeks.
Source: Company Press Release