CH2M Hill agrees to acquire VECO

Denver-based CH2M Hill said June 16 it has agreed to acquire VECO Corp., the oil field services company whose founder pleaded guilty to federal charges of bribing Alaska legislators.

CH2M Hill, a management, design and construction firm, agreed to acquire core VECO assets and staff valued at $365 million, CH2M Hill spokesman John Corsi said.

Details of the agreement were not released, but the companies said the deal valued VECO at $463 million, which includes assets that will not be part of the proposed acquisition.

In a written statement, CH2M Hill Chairman and CEO Ralph Peterson said the combined companies would be able to offer a unique range of services. Meanwhile VECO Chairwoman Tammy Kerrigan praised CH2M Hill’s financial and global industry position.

The companies had signed a letter of intent for exclusive negotiations May 15.

They said they expected to finalize details of the acquisition, along with a transition and integration plan, by the end of August.

VECO’s former executives have been embroiled in a corruption scandal implicating Alaska lawmakers.

Founder and former CEO Bill Allen pleaded guilty in May to bribing state lawmakers in exchange for votes favoring industry on oil legislation. Rick Smith, former vice president of community and government affairs, also pleaded guilty to federal charges. Both resigned.

The scandal was not a concern for CH2M Hill, Corsi said.

“We feel that issue is an isolated issue focused on a few folks at the top,” he said. CH2M Hill was attracted to VECO’s reputation in the oil and gas industry, its focus on client services, its skilled work force and location, Corsi said.

CH2M Hill has 19,000 employees worldwide and $4.5 billion in annual revenue.

VECO has more than 4,000 employees and has said annual revenue in its best years was $1 billion.

—The Associated Press