CH2M Hill is about 5 times the size of Veco, so I figure it's big enough. This would sure close out the Bill Allen influence-peddling era! ADN has the story...
Colorado firm negotiating to buy Veco
adn.com
By WESLEY LOY and LISA DEMER
Anchorage Daily News
Published: May 18, 2007
Last Modified: May 18, 2007 at 12:29 PM
A Colorado company, CH2M Hill, announced today it is negotiating to buy the scandal-plagued Anchorage oil-field services company Veco Corp.
“The business combination with CH2M Hill is an excellent opportunity to move our company forward,” said Tammy Kerrigan, who took over as Veco chairwoman after her father, Bill Allen, pleaded guilty last week to federal bribery and conspiracy charges.
“CH2M Hill is consistently recognized as one of the most respected companies in the engineering and construction industry, and we are very interested in the significant value created for our clients by combining the skills and resources of the two firms,” said Kerrigan, of Grand Junction, Colo. “This transaction would also provide a great home for our dedicated and skilled work force.”
CH2M Hill is a Denver-based global management, design and construction firm with 19,000 employees and $4.5 billion in annual revenue. Veco is heavily involved in oil-field services and construction on the North Slope, in the Lower 48, Canada and the Middle East. The company has more than 4,000 employees and in its best years has had $1 billion in revenue, Allen has said.
John Corsi, spokesman for CH2M Hill, said his company and Veco have signed a letter of intent that provides a framework for 90 days of exclusive discussions to close the deal.
“We are very enthusiastic about the prospect of this deal. The outstanding employees at Veco are respected worldwide for their heritage of service to the energy industry,” said Rob Smith, president of CH2M Hill’s energy, chemicals and industrial systems business group. “Their commitment to client service would be an excellent fit with CH2M Hill’s culture. Veco’s core energy business and locations fit our corporate growth strategy extremely well.”
Allen, who helped build Veco starting in 1969, pleaded guilty to bribing state lawmakers in exchange for their votes or influence on oil industry legislation. Another Veco executive, Rick Smith, also pleaded guilty to federal charges, and both face probable prison time.
Contact reporters Wesley Loy and Lisa Demer at wloy@adn.com and ldemer@adn.com. |
