Morgan Sindall will use AMEC’s 25m sq ft development pipeline to create a new UK-wide urban regeneration business following its £26m purchase of the company’s construction and property arms.
The deal, announced to the stock exchange this morning, will see the construction group purchase the share capital of AMEC Developments Limited (ADL), involved in projects worth more than £2.5bn, and the assets of its national construction business Design and Project Services (DPSL).
ADL’s 65 staff, headquartered in Salford Quays,
Morgan Sindall executive chairman John Morgan said: “This acquisition is a significant next step for Morgan Sindall.
“It substantially adds to our existing divisions and opens up huge growth opportunities in our construction and regeneration markets.
“Morgan Sindall represents an excellent home for the businesses, their employees and customers and we look forward to further developing the enlarged group.”
AMEC Developments is involved in more than 30 mixed-use projects, including
Other landmark schemes include a £120m, 150,000 sq ft retail and residential development at Eastlands,
Chief executive Samir Brikho described the deal as an “excellent outcome” for AMEC shareholders.
“Once our divestment programme is complete we will then move ahead with our strategy to further build AMEC’s position as the leading provider of consultancy, engineering and project management services to clients in energy and industrial process markets,” he said.
Morgan Sindall will pay £55m to AMEC for the goodwill associated with ADL and DPS, expected on completion to have net liabilities of £29m, including cash of £8m.
AMEC will compensate Morgan Sindall with £29m in cash for the net liabilities at completion.
AMEC, advised by UBS and NM Rothschild.
