The WorleyParsons Limited (ASX: WOR) share price could move today after an announcement regarding its acquisition of Jacobs' ECR division and a proposed name change for the new entity.
What's happening with the Jacobs ECR acquisition?
WorleyParsons announced that subject to the satisfaction of the remaining conditions to completion, it anticipates that the completion of the Jacobs ECR division acquisition will occur after the market closes over the last weekend of April 2019.
On completion of the transaction, WorleyParsons will employ approximately 57,600 people in 51 countries, providing "global sector leadership" across hydrocarbons, chemicals, minerals and metals which it believes will bring significant value upside through cost and revenue synergies.
Did someone say name change?
That's right – the company also announced that following the completion of the Jacobs ECR transaction it will adopt 'Worley' as its new brand with the domain name Worley.com.
The company said the new brand leverages the brand equity of its existing name, acknowledges Jacobs ECR's heritage in its brand colour and style, as well as highlighting 'energy, chemicals & resources' in its tagline.
The company name will be changed to Worley Limited (subject to approval of members at the annual general meeting in October 2019).
Should you buy WorleyParsons shares?
While the WorleyParsons share price has had a strong start to the year, the stock plummeted 41.4% in Q4 2018 alone to close out the year at $11.42 per share. It was a similar story for fellow EPC rival Emeco Holdings Limited (ASX: EHL) which saw its share price plummet 45.3% over the same 3 month period, while the Seven Group Holdings Limited (ASX: SVW) share price finished the quarter 31% lower.
WorleyParsons' 1.59% dividend yield is lower than its rivals but the stock is trading at a P/E ratio of 28.5x compared to the comparably-sized Seven Group (15.1x), while Emeco, with a market cap of $707.8 million, trades on a P/E multiple of 101.8x.
For those who want to look elsewhere for growth, this top-rated stock could boost portfolio gains as it continues to soar in a $22 billion industry.
