4th Jun 2008 07:00
RNS
AMEC plc - Acquisition
For immediate release
4 June 2008
AMEC to acquire specialist US environmental and geotechnical consultancy
AMEC plc, the international engineering and project management company, announces today that it has reached agreement to acquire Geomatrix Consultants, Inc. (Geomatrix) from its owner-managers for a total cash cost of £43.0 million (US$85.0 million). £32.3 million (US$63.75 million) will be paid at closing with the balance, after any post-closing adjustments, to be paid over the next two years.
Geomatrix is a diversified technical consulting and engineering firm headquartered in Oakland, California. The company employs some 500 engineers, scientists and other professionals in 18 offices across the United States and one office in Canada. Geomatrix offers specialist environmental, geotechnical and water resources services to clients in sectors such as oil and gas, industrial, mining and municipal.
The purchase is consistent with AMEC's strategy of geographic and capacity expansion in the Earth and Environmental business and follows the acquisition of six smaller environmental consultancy businesses since January 2007.
Samir Brikho, AMEC Chief Executive said: "With services from environmental impact assessments to remediation, Earth and Environmental is an important differentiator in AMEC's portfolio of services. Geomatrix will significantly enhance our geographic coverage and our ability to provide customers with high value consultancy services."
Roger Jinks, President of AMEC's Earth and Environmental division added: "This acquisition not only strengthens our presence in the United States, but adds significant depth to our consulting talent in the environmental remediation, seismic and groundwater services growth markets."
Anthony Daus, President of Geomatrix said: "We are pleased to be joining AMEC and being part of this growing and dynamic organisation. This will allow us to better serve our clients nationally and internationally and provides excellent technical and professional opportunities for our staff."
Closing is anticipated later in June.
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 plc is a focused supplier of high-value consultancy, engineering and project management services to the world's energy, power and process industries. With annual revenue over £2.3 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 approximately 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).
AMEC's Earth and Environmental division operates from 130 offices in the U.S., Canada and overseas. 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.
AMEC has a leading position in the Canadian market for environmental services and is a major supplier to the US Air Force in locations around the world.
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.
Related Shares:
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