- SNC-Lavalin Group (TSX:SNC) is changing its name to AtkinsRéalis, crystalizing a pivot in the global industrial firm’s 112-year history
- The company will focus on offloading underperforming assets and onboarding strategic acquisitions as soon as next year
- AtkinsRéalis is a world-leading professional services and project management company with a history dating back to 1911
- SNC-Lavalin Group stock (TSX:SNC) is up by 63.78 per cent over the past year but remains virtually unchanged since summer 2007
- Shares will begin to trade under the new ATRL ticker symbol as of market open on Sept. 18
SNC-Lavalin Group (TSX:SNC) is changing its name to AtkinsRéalis, crystalizing a pivot in the global industrial firm’s 112-year history.
“In recent years, we have deliberately repositioned the company,” Ian Edwards, SNC-Lavalin’s CEO, said in a statement released Wednesday. “We exited those parts of the business that were not profitable or aligned with our strategy; corrected underlying issues affecting our performance; doubled down on high-growth global markets; embraced digital transformation; and most importantly, redefined our purpose and strengthened our culture. We have reached an inflection point, so now is the right time to rebrand to AtkinsRéalis and reflect the exciting future ahead of us.”
The company’s shift in focus includes offloading non-essential assets, such as a large backlog of over-budget rail contracts, to enable ambitious expansion plans to propel profitability and revenue growth.
Beginning as early as 2024, SNC intends to embark on a “methodical” series of small mergers and acquisitions, with two “probably” slated for next near, Edwards said to analysts on a conference call last month.
SNC has been streamlining its operations over the past few years in preparation, including selling its money-losing oil operations in 2021 for pennies on the dollar, and turning away from fixed-price construction contracts because of repeatedly running over budget.
The new beginning will also further distance the company from a fraud conviction in 2019 for bribery and money laundering to win construction contracts in Libya between 2001 and 2011. SNC admitted to paying Saadi Gadhafi, the son of former Libyan dictator Moammar Gadhafi, more than C$50 million for his influence to grow its business in the country.
Quebec Court Judge Claude Leblond ordered SNC’s construction division to pay C$280 million over five years and serve three years’ of probation.
SNC’s Libya controversy also crossed into a 2018 Canadian government scandal involving Prime Minister Justin Trudeau and Justice Minister Judy Wilson-Raybould, who resigned from Cabinet because she said she felt pressure to intervene in the case.
Anatomy of a name
SNC’s new name combines “Atkins” – from U.K.-based engineering firm WS Atkins, which the company acquired in 2017 – and “Réalis,” which is meant to recall the city of Montréal and SNC’s French-Canadian origins, as well as the French verb “réaliser” to emphasize an outcome-oriented focus.
The outgoing SNC abbreviation stands for early partners Surveyer, Nenniger and Chenevert, who officially lent their names to the company in 1946. SNC merged with rival Lavalin in 1991.
Shareholder details
As of Wednesday, the AtkinsRéalis brand will be featured on all communications materials.
Common shares will trade on the TSX under a new ticker symbol (TSX:ATRL) as of market open on Sept. 18.
SNC-Lavalin Group will seek to change its legal name through shareholder approval at its 2024 annual shareholder meeting.
AtkinsRéalis is a world-leading professional services and project management company with a history dating back to 1911. It focuses on creating sustainable solutions that connect people, data and technology to transform the world’s infrastructure and energy systems.
SNC-Lavalin Group stock (TSX:SNC) is unchanged, trading at $43.50 per share. The stock is up by 63.78 per cent over the past year but remains virtually unchanged since summer 2007.
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