Sverdrup Corporation

Situation

Family-owned and operated since its founding in 1928, St. Louis-based Sverdrup Corporation (“Sverdrup” or the “Company”) provides engineering, architecture and construction services, as well as facility management services for military installations.

The Company, which at the time of the transaction was generating more than $500 million in revenue and topped the list of the largest privately-held companies in St. Louis, is widely recognized for its infrastructure projects across the U.S.

Solution

Following years of sustained growth and above-market profitability, the family owners engaged in a comprehensive analysis of strategic alternatives and ultimately decided to pursue a sale of the Company.

While liquidity and asset diversification were key objectives of a sale process, the owners also felt a sale process would best satisfy their goal of succession planning.

Results

As a result of a broad marketing campaign involving strategic and financial buyers, the Company received a large number of initial bids at attractive valuations.

The strategic offers for Sverdrup were at a premium to those received from financial buyers.

After a competitive negotiation process, publicly-traded Jacobs Engineering Group emerged as the buyer that best met the criteria set forth by the shareholders.

The transaction, which was valued at approximately $250 million, was in excess of contemporary industry-wide valuation metrics.