CH2M HILL and VECO Reach Agreement on Terms of Acquisition

Jun 16, 2007, 01:00 ET from CH2M HILL

    DENVER, June 16 /PRNewswire/ -- CH2M HILL and VECO announced today that
 agreement has been reached on the terms of the acquisition of VECO by CH2M
 HILL. The deal places a value of $463 million on VECO.
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     "We are delighted with this agreement," said Ralph Peterson, Chairman
 and CEO of CH2M HILL. "We believe the CH2M HILL family will be a perfect
 home for VECO's tremendous workforce. Together, we will offer a unique
 range of value-creating services for our clients and incredible
 opportunities for our employee-shareholders."
     "This is a wonderful outcome for VECO. When we look at CH2M HILL's
 clients, their strong financial and global industry position, and their
 employee ownership model, it clearly is a natural fit for our business and
 workforce," said Tammy Kerrigan, Chairwoman of VECO.
     "I am extremely impressed by the quality of the VECO workforce and its
 dedication to top-notch safety performance, said Lee McIntire, President
 and COO of CH2M HILL. "VECO and CH2M HILL bring complementary technical and
 project management skills that will benefit our clients and the communities
 we serve."
     The two companies signed a Letter of Intent for exclusive negotiations
 on May 15, 2007. UBS represents CH2M HILL as lead financial advisor and
 Morrison & Foerster LLP serves as CH2M HILL's legal counsel. Kirkpatrick &
 Lockhart Preston Gates Ellis LLP served as VECO's legal counsel for the
 transaction. Deloitte & Touche serves as VECO's financial advisor. CH2M
 HILL and VECO are expected to finalize the details of the acquisition and a
 transition and integration plan by the end of August.
     About CH2M HILL
     Headquartered in Denver, Colo., employee-owned CH2M HILL is a global
 leader in engineering, construction, and operations for public and private
 clients. With $4.5 billion in revenue, CH2M HILL is an industry-leading
 program management, construction management for fee, and design firm, as
 ranked by Engineering News-Record (2006). The firm's work is concentrated
 in the areas of transportation, water, energy, environment, communications,
 construction, and industrial facilities. The firm has long been recognized
 as a most-admired company and leading employer by business media and
 professional associations worldwide. CH2M HILL has more than 19,000
 employees in regional offices around the world.
     About VECO Corporation
     Serving oil and gas clients since 1968, VECO provides engineering,
 construction and field support services with over 4000 employees and major
 operations in Alaska, western Canada, the United States, Russia and the
 Middle East. VECO currently provides services to the energy, resource and
 process industries and to the public sector throughout the world.
 Incorporating more than 30 years of experience, extensive resources and
 top-notch personnel, VECO
     uses a solution-oriented and cost-conscious approach to expertly manage
 projects of all sizes.