24th Mar 2009 09:04
AMEC PLC
24 March 2009
AMEC to acquire Canadian engineering consultancy business
AMEC plc, the international engineering and project management company, announces today that it has agreed to purchase the assets and ongoing operations of Philips Engineering Ltd. (Philips) from its shareholder for a total cash cost of £4.8 million (Cdn$8.7 million). Of this, £3.4 million (Cdn$6.1 million) will be paid at closing, with the balance to be paid in two equal instalments over the next two years.
Closing is anticipated to be 30 April 2009.
Philips is a 70 person Canadian engineering firm located near Toronto, in Burlington, Ontario. Founded in 1946, the company specialises in civil engineering consultancy services relating to transportation, water resources and municipal infrastructure.
The acquisition is consistent with AMEC's strategy of increasing the geographic footprint and capabilities of the Earth and Environmental division and it follows nine other selective acquisitions in this division since January 2007. Philips will provide AMEC with infrastructure capabilities in Eastern Canada at a time when the Canadian Federal and Ontario governments have committed to substantial economic stimulus spending on infrastructure system upgrades, maintenance and asset management.
Enquiries to:
AMEC plc +44 (0) 20 7539 5800
Sue Scholes, Director of Communications
Neil Jamieson, Director of Investor Relations
Media:
Frank Stokes, Media Relations Manager: +44 (0) 1452 872121
Lauren Gallagher, Media Relations Manager: +1 602 757 3211
Brad Christensen, Media Relations Director, Earth and Environmental: +1 602 432 1339
Notes to editors:
AMEC (LSE: AMEC) is a focused supplier of high-value consultancy, engineering and project management services to the world's energy, power and process industries. With annual revenues of over £2.6 billion, AMEC designs, delivers and maintains strategic and complex assets for its customers. AMEC's Natural Resources, Power and Process and Earth and Environmental businesses employ over 22,000 people in more than 30 countries globally. For further information please see www.amec.com.
AMEC's Earth and Environmental division operates from over 140 offices in the U.S., Canada and around the world. The business provides a broad range of environmental, geotechnical, water resources, infrastructure, materials testing, and project management services to public and private clients.
Earth and Environmental works for customers common to AMEC's Natural Resources and Power and Process divisions, providing services from environmental impact assessments at the earliest stages of the project life cycle right through to advising on clean up following decommissioning.
Market drivers for this division include growth in environmental legislation; increasing corporate social responsibility; increasing use of brownfield sites and exploration of increasingly environmentally sensitive regions by natural resources companies.
The market for environmental services is large and fragmented. Earth and Environmental will continue to follow a strategy of continued growth in selected sectors, both organically and by way of acquisitions which will enhance capabilities and facilitate selective regional expansion.
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