3rd Aug 2007 17:54
AMEC PLC03 August 2007 AMEC plc - DisposalFor immediate release, 3 August 2007 AMEC plc ("AMEC") Divestment of Building and Facilities Services business • SPIE SA ("SPIE") to acquire AMEC's Building and Facilities Servicesbusiness ("BFS"), for £117 million. • All four of AMEC's principal non-core Built Environment businesseshave now been sold. • The sale of the non-core activities will generate a total cashconsideration of approximately £320 million, before costs and taxes and subjectto receiving all necessary consents. The transaction AMEC and SPIE today announce that they have agreed terms for the sale of BFS,for a cash consideration of £117 million. Completion is expected to occur bymid September, once the consultation process with employee representatives inthe UK and France has been completed. Proceeds from the transaction will beheld on deposit. AMEC Chief Executive, Samir Brikho, said:"AMEC has today achieved an important milestone, bringing us closer todelivering our commitment to a 6% margin in 2008. By concluding the divestmentof the non-core Built Environment businesses, AMEC is positioned for the nextphase of its strategy which is to become a leading supplier of high valueconsultancy, engineering and project management services to the world's energyand industrial process markets. It is also an excellent outcome for BFS and its employees and customers. SPIEis a market leader in the provision of multi-technical services in ContinentalEurope and is committed to developing successfully the BFS business in the UK." Business description BFS provides multi technical engineering services from initial design, throughconstruction, mechanical and electrical installation services, to long-term hardFM services across a wide variety of market sectors for clients with specialisedrequirements for highly engineered facilities. An example is the provision ofmechanical and electrical systems at London Heathrow Airport's Terminal 5. BFSoperates from a UK branch network incorporating Glasgow, Edinburgh, London,Birmingham, Bristol and Manchester. Clients are mostly in the private sectorand include BAA, Barclays, Interserve, JP Morgan and UBS. The management team, which is led by Grahame Ludlow, is remaining with thebusiness. For the year ended 31 December 2006, BFS had approximately 2,300employees and generated revenues of £333 million and profit of £10 millionbefore interest, tax and intangible amortisation and exceptional items. Grossassets as at 31 December 2006 were £56 million. Background In December 2006, AMEC initiated a process to divest its non-core activitiesduring 2007, consistent with optimising value. Of the three other principal businesses within Built Environment, the PropertyDevelopments and UK Building and Civil Engineering businesses have been sold toMorgan Sindall plc. The sale of the Project Investments business to LandSecurities Trillium was announced on 12 July and is expected to complete by 31October 2007. The sales of five specialist non-core businesses have already been announced.The divestment of other small specialist businesses is well advanced. The total proceeds from this disposal programme amount to approximately £320million, before costs and taxes and subject to receiving all necessary consents. Enquiries to: AMEC plc + 44 (0)20 7539 5800Analysts and investors:Samir Brikho, Chief ExecutiveStuart Siddall, Finance DirectorNeil Jamieson, Director of Investor Relations GeneralSue Scholes, Director of Communications Media:Frank Stokes, Media Relations Manager +44 (0) 7712 008356 Notes to editors AMEC plc is an international project management and services company thatdesigns, delivers and supports infrastructure assets for customers across thepublic and private sectors. AMEC employs about 18,000 people in its corebusinesses, working from a network of offices throughout the UK, US and Canada,as well as regional offices and projects worldwide. AMEC's shares are traded onthe London Stock Exchange where the company is listed in the Support Servicessector (LSE: AMEC.L). Internet users will be able to view this announcement, together with otherinformation about AMEC plc, at the company's web site www.amec.com N M Rothschild & Sons Limited ("Rothschild") and UBS Limited ("UBS") are actingas financial advisers to AMEC in relation to the transaction. Rothschild and UBS are acting exclusively for AMEC and are not acting for anyother person in relation to the transaction and will not be responsible to anyperson other than AMEC for providing the protections afforded to clients ofRothschild and UBS Limited or for providing advice in relation to the contentsof this announcement or the transaction. About SPIE As a specialist in electrical, mechanical and HVAC engineering, energy,communications and infrastructure, SPIE supports and brings innovative solutionsto local authorities and businesses to design, build, operate and maintain theirfacilities. SPIE's 23,000 employees work from nearly 400 locations in 28 countries providingadvanced technical services and solutions to meet the current and futurechallenges of both local and international customers. In 2006, SPIE generated turnover of €2.7 billion and EBIT of €87.7 million. For further information on SPIE visit : www.spie.com ENDS This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
AMFW.L