20th Jul 2009 07:00
AMEC plc
For immediate release
20 July 2009
AMEC announces agreement to acquire leading Australian resources engineering and project development company GRD Limited
AMEC plc, the international engineering and project management company, today announces that it has signed an agreement for the acquisition of leading Australian engineering and project development company GRD Limited (GRD), by way of a scheme of arrangement. Total consideration for the transaction, which has been unanimously recommended to GRD shareholders by the Board of GRD, will be A$106 million (£52 million) in cash, funded from existing AMEC cash balances.
GRD is an ASX listed engineering company based in Perth, Australia, which employs 850 people globally.
GRD's main business is GRD Minproc, a world class engineering and project delivery business specialising in the design, procurement and construction of mineral projects, with primary operations in Australia, Africa and South America. GRD also owns Global Renewables, a development company specialising in the recovery of resources from municipal solid waste.
The combination of AMEC's existing Australasian oil and gas business with GRD Minproc will create a significant player across the natural resources sector in the region, with the capability to take advantage of the substantial opportunities available in this important resources market. The acquisition of GRD Minproc will also greatly increase AMEC's project delivery capabilities in Africa and build on AMEC's existing presence in South America.
The ability to draw on GRD Minproc's internationally recognised expertise in project engineering, particularly in copper, gold, uranium, nickel and iron, will also cement AMEC as the partner of choice for minerals projects.
Samir Brikho, AMEC Chief Executive said:
"The capabilities and geographic coverage of GRD are highly complementary with AMEC's existing business and the acquisition is a further step towards the delivery of superior outcomes for clients in our chosen geographies and commodities."
Neil Bruce, Chief Operating Officer for AMEC's Natural Resources Division, added:
"The acquisition of GRD, and the calibre of people within the company, allows AMEC to expand our Natural Resources business across Australasia and Africa whilst further enhancing our Mining presence and capability in South America."
Cliff Lawrenson, GRD Group Chief Executive said:
"We see AMEC as a world leader in its field and a natural partner for GRD given our complementary skills and service offerings. This transaction will deliver our people a great opportunity to consolidate the strength of our position and expand into new markets and new sectors as part of the broader AMEC group."
The transaction is subject to GRD shareholder approval and satisfaction of certain conditions precedent, including customary regulatory approvals. It is expected that the transaction will become effective around mid-October 2009.
Enquiries to:
AMEC plc: +44 (0)20 7539 5800
Sue Scholes, Director of Corporate Communications
Neil Jamieson, Director of Investor Relations
Media:
Brunswick Group LLP +44 (0)20 7404 5959
Mike Harrison
Giles Croot
AMEC plc
Frank Stokes, Media Relations Manager; +44 (0) 1452 872121
Notes to Editors:
AMEC plc
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.
AMEC shares are traded on the London Stock Exchange where the company is listed in the Oil Equipment and Services sector (LSE: AMEC.L).
www.amec.com
AMEC's Natural Resources business is a leading provider of total life-of-asset services to customers in the upstream and downstream oil and gas (including oil sands) and mining sectors, with a strong reputation for balancing global excellence with local delivery.
GRD
GRD Limited is an Australian engineering and development company.
GRD Minproc, a wholly owned subsidiary of GRD Limited, is a leading global engineering and project delivery business providing high value services and specialising in the design, procurement and construction of mineral resource and waste-to-resources projects. The company's process engineering and project record are internationally recognised with extensive experience gained in copper, gold, uranium, nickel and iron ore. Customers include BHP Billiton, Anglo American, Freeport McMoRan, Rio Tinto and Vale.
Global Renewables is a development company specialising in the recovery of resources from municipal solid waste. Global Renewables is currently undertaking the Lancashire Waste Partnership PFI Project, one of the largest waste contracts of its type in the United Kingdom.
GRD's revenue in the year ending 31 December 2008 (for continuing activities) was A$251 million (£123 million).
Related Shares:
AMFW.L