Jacobs Completes CH2M Acquisition, Creating $15 Billion Professional Services Leader Focused on Delivering Innovative Solutions for a More Connected, Sustainable World

• Combination strongly supported by CH2M shareholders with approximately
  96 percent affirmative vote.
• Strengthens Jacobs’ diversified and differentiated leadership
  position, providing innovative government, infrastructure and
  industrial professional services.
• Establishes Jacobs as a global design leader in the industry, offering
  greater opportunities for employees as well as enhanced services to
  our clients.
• Reaffirms fiscal 2018 adjusted EPS guidance of $3.55 to $3.95. The
  combination is expected to be 15 percent accretive to Jacobs’ adjusted
  earnings per share in the first full year after closing1
  and 25 percent accretive when further excluding the impact of
  amortization from CH2M purchase intangibles.
• Increases Jacobs’ proportion of higher growth, higher margin business
  while maintaining its lower-risk portfolio and investment-grade credit
  profile.
• Announces intention to streamline operating model into three global
  lines of business, including: Aerospace, Technology, Environmental and
  Nuclear (ATEN); Buildings, Infrastructure and Advanced Facilities
  (BIAF); and Energy, Chemicals and Resources (ECR).
• Former CH2M board member Barry Williams joins the Jacobs Board of
  Directors.

DALLAS & DENVER–(BUSINESS WIRE)–Jacobs
Engineering Group Inc. (NYSE:JEC) today announced the completion of
its acquisition of CH2M via a cash and stock transaction. The
combination, which received broad affirmative support from CH2M
shareholders, is expected to further drive the company’s profitable
growth strategy.

“This is a transformative step-change that brings together the
industry’s foremost expertise and services to fulfill our vision to
provide leading-edge solutions for a more connected, sustainable world,”
said Jacobs Chairman and CEO Steve Demetriou. “Since our August
announcement, we have held meetings with thousands of CH2M and Jacobs
employees, and I cannot overstate the enthusiasm we share about our
future together. Today, we are celebrating the creation of a new Jacobs
with even greater aspirations to do meaningful work around the world,
heartened by clients who have eagerly anticipated this combination.”

Demetriou stressed the combined firm’s continuing emphasis on talent
retention and hiring as a top priority. “People are the heart of our
organization, and we are calling on the best and brightest to join the
new Jacobs to drive our growth strategy and be part of our exciting
future.”

Focused Integration Discipline

Jacobs formed an Integration Management Office (IMO) early in August to
begin integration planning following the announcement of the proposed
CH2M acquisition. The IMO identified rigorous processes and protocols to
drive realization of cost and growth synergies, for which Jacobs’
executive team and Board of Directors will continue to provide active
oversight.

“We are applying lessons learned from past integration experiences and
adopting best practices for critical factors, such as talent retention,
and building on the excellent cultural foundations of both
organizations,” said Demetriou. “We are well positioned to capitalize on
the differentiated value proposition created by this combination, and
our continued efforts to drive incremental focus and accountability will
be supported by a simplification of our operating model. Most important,
our clients will be able to better realize the benefits of our
industry-leading, innovative capabilities.”

Reaffirms Financial Outlook

Both organizations reported strong performance in 2017, bolstering
confidence in prospects for enhanced value creation in the newly
combined firm and reinforcing the expectations for integration synergies
and returns on the transaction.

• Reaffirms fiscal 2018 outlook: The company reaffirms its
  previous fiscal 2018 outlook for both Jacobs as a standalone business
  and the expected contribution from CH2M, which translates to fiscal
  2018 adjusted EPS of $3.55 to $3.95.2 This guidance
  includes a negative impact from the amortization from CH2M purchase
  intangibles. The outlook also incorporates standalone revenue growth
  ramping during the fiscal year in-line with the company’s previous
  expectations. Given the timing of the close, the company does not
  expect any material benefit from CH2M in its Q1 results.
• Significant cost savings: Jacobs expects to achieve an
  estimated $150 million of annual run-rate savings by the end of the
  second year after closing, primarily from real estate, optimized
  organizational alignment and systems integrations. Jacobs expects to
  incur approximately $225 million in one-time costs to achieve these
  ongoing savings. In addition, the company expects to incur other
  one-time costs associated with the acquisition, such as change in
  control payments, banking and legal fees.
• Earnings accretion: The transaction is expected to be 15
  percent accretive to Jacobs’ adjusted earnings per share in the first
  full year after closing2 and 25 percent accretive when
  further excluding the impact of amortization from CH2M purchase
  intangibles.
• Upside for profitable growth: The broader, combined solutions
  offering of the combined company, including CH2M’s proven leadership
  in program management and construction management, presents potential
  for longer-term revenue upside extending both companies’ complementary
  offerings across their combined client base and broader global
  footprint.
• Sustained financial flexibility: Jacobs is maintaining its
  investment-grade credit profile upon closing.
• Attractive risk profile: Jacobs expects that after closing,
  approximately 85 percent of combined revenues will be derived from
  lower-risk and reimbursable contracts.

Focused and Simplified Operating Model

The company expects to move to reporting results by three global
business lines by the second half of fiscal 2018:

• Aerospace, Technology, Environmental and Nuclear (ATEN):
  serving global aerospace, automotive, defense, telecommunications,
  nuclear clients and the U.S. intelligence community, led by Terry
  Hagen.
• Buildings, Infrastructure and Advanced Facilities (BIAF):
  serving broad sectors including buildings, water, transportation
  (roads, rail, aviation and ports), and advanced facilities for life
  sciences, semiconductors, data centers, consumer products and other
  advanced manufacturing operations, led by Bob Pragada.
• Energy, Chemicals and Resources (ECR): serving energy,
  chemicals and resources sectors, including upstream, midstream and
  downstream oil, gas, refining, chemicals and mining and minerals
  industries, led by Vinayak Pai.

Accelerating Opportunities for Profitable Growth in High-margin
Industries3

• Enhances position in infrastructure, including water and
  transportation: Water represents an approximately $100
  billion-a-year opportunity, expected to grow at a 4 to 5 percent
  compounded annual rate, presenting significant potential to extend
  CH2M’s leadership in design, management and lifecycle services for
  government and industrial clients, including operations and
  maintenance, and resiliency services mitigating climate threats.
  Jacobs is expected to benefit by expanding these capabilities
  globally, backed by its strong operating and project delivery
  platform. The combined company will have a leading global water
  business with the scale, critical mass and experience to capitalize on
  infrastructure and industrial growth trends.
  Jacobs already
  is a global leader in the $300 billion-a-year transportation sector,
  which includes highways, roads and bridges; rail; aviation; and ports;
  growing at 4 to 5 percent on a compounded annual rate. This sector’s
  significant investment momentum hinges on population growth and
  unprecedented demands for infrastructure development and improvement
  in all transportation modes and geographies, particularly in the
  United States, Australia, New Zealand, Southeast Asia, the Middle East
  and the United Kingdom. The combination is expected to make the
  company an employer of choice in the sector, where talent remains in
  high demand, forged on a breadth of opportunities advancing the
  quality, dependability and sustainability of infrastructure around the
  world.

• Bolsters top-tier position in nuclear and environmental services: Nuclear
  projects require specialized capabilities that are difficult to
  replicate and represent approximately $145 billion in annual
  opportunities, growing 2 to 3 percent on a compounded annual basis.
  CH2M’s preeminent position in program management of large-scale
  environmental and nuclear remediation programs and Jacobs’
  complementary experience with government agencies in nuclear
  decommissioning together create significant business expansion
  opportunities.
  Environmental work represents an
  approximately $160 billion annual opportunity, growing 4 to 5 percent
  on a compounded annual rate. The combined company will have among the
  broadest and deepest environmental technical and project delivery
  capabilities in the industry. In addition, CH2M’s environmental
  expertise complements Jacobs’ existing business with the U.S. federal
  government, positioning the combined company with leading capabilities
  for government clients that also are transferable to private-sector
  clients, creating opportunities for substantial upside potential for
  the company.

• Expands leadership in growing industrial sectors: The
  combination brings together preeminent engineering expertise and
  proven program- and construction-management capabilities, delivering
  advanced manufacturing and industrial technologies for diverse
  sectors, including consumer products, life sciences, pharmaceuticals,
  material sciences and semiconductors.
• Enhances energy, chemicals and resources portfolio: The
  transaction combines both firms’ proven engineering and construction
  management capabilities to establish a differentiated,
  lifecycle-services offering for clients in these sectors. It further
  enhances Jacobs’ position, effectively moderating cyclical exposures
  with additional operational and maintenance capabilities for upstream,
  midstream and downstream clients, including critical infrastructure
  for major projects in the oil, gas, refining, chemicals and mining
  industries.

CH2M Board Member to Join Jacobs’ Board

Jacobs increased the size of its Board of Directors to 11 members and
appointed former CH2M director, Barry Williams, to serve as a director
of Jacobs.

Williams, who also serves as a director of Navient and several
non-profit organizations, is the retired managing general partner of
Williams Pacific Ventures, Inc. and retired director of the PG&E,
Simpson, and Northwestern Mutual boards. He also previously served as
president and CEO of American Management Association International;
senior mediator for JAMS/Endispute and visiting lecturer for the Haas
Graduate School of Business, University of California; general partner
of WDG, a California limited partnership; and general partner of Oakland
Alameda Coliseum Joint Venture.

Advisors

For Jacobs: Perella Weinberg Partners LP and Morgan Stanley & Co.
LLC served as financial advisors to Jacobs, while Fried, Frank, Harris,
Shriver & Jacobson LLP and Wachtell, Lipton, Rosen & Katz served as
Jacobs’ legal counsel for the transaction.

For CH2M: BofA Merrill Lynch and Credit Suisse served as
financial advisors to CH2M, while Latham & Watkins LLP and Richards,
Layton & Finger, P.A. served as CH2M’s legal counsel.

About Jacobs

Jacobs leads the global professional services sector, delivering
solutions for a more connected, sustainable world. With $15.0 billion in
combined revenue and a talent force more than 74,000 strong, Jacobs
provides a full spectrum of services including scientific, technical,
professional and construction- and program-management for business,
industrial, commercial, government and infrastructure sectors. For more
information, visit www.jacobs.com,
and connect with Jacobs on LinkedIn, Twitter and Facebook.

Forward-looking statements

Certain statements contained in this document constitute forward-looking
statements as such term is defined in Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, and such statements are intended to be covered by the
safe harbor provided by the same. Statements made in this press release
that are not based on historical fact are forward-looking statements,
including the anticipated benefits of the acquisition of CH2M and
expectations for future performance and earnings, including the
company’s fiscal 2018 outlook. Although such statements are based on
management's current estimates and expectations, and currently available
competitive, financial, and economic data, forward-looking statements
are inherently uncertain, and you should not place undue reliance on
such statements as actual results may differ materially. We caution the
reader that there are a variety of risks, uncertainties and other
factors that could cause actual results to differ materially from what
is contained, projected or implied by our forward-looking statements.
For a description of some additional factors that may occur that could
cause actual results to differ from our forward-looking statements see
Jacobs’ Annual Report on Form 10-K for the period ended September 29,
2017. Jacobs is under no duty to update any of the forward-looking
statements after the date of this press release to conform to actual
results, except as required by applicable law.

1 Adjusted earnings per share exclude transaction and
integration costs.
2 Adjusted earnings per share exclude
transaction and integration costs.
3 All business line
opportunity figures: Internal assessment and third-party research.

Contacts

Investors
Jacobs Engineering Group Inc.
Jonathan Doros,
817-239-3457
jonathan.doros@jacobs.com
or
Media
CH2M
Lorrie
Paul Crum, 303-525-2916
lorrie.crum@ch2m.com
or
Jacobs
Engineering Group Inc.
Salim Rahimi, 214-583-8428
salim.rahimi@jacobs.com