URS, CH2M Hill bid for Scott Wilson

American engineering giant URS Corporation has announced that it has agreed terms for the purchase of Scott Wilson (SW), one of the UK's largest consultancies operating in the environmental sector. The acquisition of Scott Wilson will "significantly expand URS' capabilities" in the UK, particularly in transport infrastructure, and further extend URS' global presence. URS will pay 210 pence per SW share, with further details of the purchase to be released later today. Headline financial results for Scott Wilson's year ending 2 May 2010 are reported to be £340 million revenue and £13.6 million net income. UK-based work accounted for 72% of revenue, with 12% from Asia Pacific, 9% from Europe, 4% from the Middle East and 3% from India.

However, before the deal - which SW has recommended to its shareholders - is sealed there may be a counter offer from URS Corporation's Denver-based rival, CH2M HILL Companies. In an announcement to the London Stock Exchange this morning, CH2M Hill said that it had "noted" the recommended offer by URS. The $6.4 billion turnover consulting services group has also undertaken due diligence on Scott Wilson and is now considering its position with respect to making a cash offer for the UK plc.

• URS news release
• CH2M Hill news release