SNC-Lavalin Announces Completion of the Sale of South African Resources Business

MONTREAL, Dec. 11, 2020 /CNW Telbec/ - SNC-Lavalin (TSX: SNC) today announced that it has completed the previously announced agreement to sell its South African Resources business to local management. The sale forms part of the Company's strategy to focus on becoming a leading professional services and project management company, and generate consistent earnings and cash flow.

The South African Resource business, with approximately 1,800 employees, primarily services construction and site maintenance clients. The sale and exit of this business is in line with SNC-Lavalin's strategic focus on Engineering Services, and follows both the closure and exit of Valerus in March, a non-core, mid-stream oil and gas business based in Houston, and the divestment of the European fertilizer business in September.

"Since announcing in July the restructuring of our Resources business into a pure services business, we have made great progress. The closure of this sale is part of that progress, alongside the continued right-sizing of overheads, and importantly; winning new services contracts such as the new framework agreement with bp announced in September," said Ian L. Edwards, President and CEO, SNC-Lavalin Group Inc. "More broadly, Engineering Services, has delivered strong results through 2020 and this is where our future lies going forward."

About SNC-Lavalin
Founded in 1911, SNC-Lavalin is a fully integrated professional services and project management company with offices around the world. SNC-Lavalin connects people, technology and data to help shape and deliver world-leading concepts and projects, while offering comprehensive innovative solutions across the asset lifecycle. Our expertise is wide-ranging — consulting & advisory, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and sustaining capital – and delivered to clients in four strategic sectors: EDPM (engineering, design and project management), Infrastructure, Nuclear and Resources, supported by Capital. People. Drive. Results. www.snclavalin.com

SOURCE SNC-Lavalin