21st Jun 2005 07:01
AMEC PLC21 June 2005 AMEC plc 21 June 2005 AMEC to make strategic acquisition of leading nuclear services business AMEC plc has made an offer to buy NNC Holdings Limited ("NNC"), the UK's leadingprivate sector nuclear services business. The offer has been recommended by theBoard of NNC and irrevocable acceptances have been received from shareholdersholding 100% of the equity in issue. Including share option holders thisrepresents 91% of the equity on a fully diluted basis. The offer is expected tobecome unconditional in early July 2005. The cost of the acquisition will be £25.3 million plus net debt at the time ofcompletion. Net debt at 31 March 2005 was £12.7 million. The acquisition will befunded from AMEC's existing banking facilities. "This strategic acquisition will strengthen AMEC's nuclear services business andposition the company to secure a substantial slice of the annual £2 billionoperations, maintenance and decommissioning spend soon to be available to theprivate sector in the UK," said Sir Peter Mason, Chief Executive of AMEC. "NNC'sreactor services division adds a new dimension to our portfolio and, withgovernments across the world seeking to re-invest in the nuclear industry, weare well placed to benefit from significant new international opportunities." NNC, which employs around 1,000 people, provides engineering solutions andsafety consultancy services throughout the life cycle of nuclear facilities inthe UK, Canada and across the former Soviet Union. In the year ended 31 March2005, it generated an unaudited operating profit of £5.6 million on a turnoverof £86.6 million. The acquisition will complement AMEC's existing strength in the UK and Frenchmarkets, where it has worked with British Nuclear Fuels ("BNFL"), the UnitedKingdom Atomic Energy Authority ("UKAEA") and Electricite de France ("EDF") forseveral decades. The shareholders of NNC are 3i (51%), BNFL (15%) and Management (34%). Contacts:AMEC plc +44 (0)20 7634 0000Neil Jamieson, Director of Investor RelationsJuliet Sychrava, Director of Corporate CommunicationsCharles Reynolds, Head of Media Relations Notes to editors: 1. AMEC plc is an international project management and services companythat designs, delivers and supports infrastructure assets for customersworldwide across the public and private sectors. AMEC employs about 44,000people in more than 40 countries, generating annual turnover of around £5billion. AMEC's shares are traded on the London Stock Exchange where the companyis listed in the Support Services sector (LSE: AMEC.L). 2. AMEC's nuclear expertise is based on more than 50 years experience inthe UK, including current work at the BNFL Sellafield site in the north west ofEngland and the UKAEA facility at Dounreay in Scotland. AMEC also providesspecialist engineering services to France's nuclear industry, where it recentlyacquired a 49% interest in Game Nucleaire and advises EDF on decommissioningsolutions. It also has a long history of working within the Canadian nuclearmarket. AMEC also has a major nuclear waste management contract in the US, whereits proprietary technology, GeoMelt, is being used to vitrify intermediate levelnuclear waste at the vast Hanford complex in Washington State. For moreinformation on AMEC, including its work in the nuclear industry, visitwww.amec.com 3. NNC Holdings Limited is a private-sector provider of technical supportto the UK and international nuclear industry. It is headquartered in Knutsford,Cheshire. In the UK, where NNC has approximately 700 employees, it provides thecomplete range of services required to ensure the safe and efficient operationof nuclear facilities, from concept design through managing the building processand maintaining the asset through to eventual decommissioning. NNC also hasapproximately 250 employees in Canada, providing support services to the nuclearmarket including clients Bruce Power and Ontario Power Generation. In addition,NNC provides technical and project management expertise in South Africa, EasternEuropean and former Soviet Union countries including Lithuania, Russia and theUkraine. Additionally NNC has developed a leading non-nuclear business providing completesolutions to complex engineering problems, particularly in the defence,environmental and oil & gas industries, all of which are important markets toAMEC. Customers include the Ministry of Defence, BAE Systems and Rolls-Royce.For more information on NNC visit www.nnc.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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