29 June 2012
AMEC acquires Serco's nuclear Technical Services business
AMEC, the international engineering and project management company, announces today that it has completed the acquisition of Serco Group plc's nuclear Technical Services (TS) business for a cash consideration of £137 million.
TS is based at a number of sites in the UK and has around 600 staff providing consulting and project solutions for customers including the Ministry of Defence, EDF, Magnox and the Nuclear Decommissioning Authority.
AMEC's Chief Operating Officer, Neil Bruce, said: "This acquisition is fully aligned with our Vision 2015 growth strategy and further builds AMEC's footprint and capabilities in the clean energy market. The team of some 600 highly skilled professionals will complement our existing expertise in nuclear support activities and enable us to better serve our customers."
Mike Saunders, President of AMEC's Power & Process Europe business, added: "This is an exciting opportunity to combine the world-class skills of two businesses that are renowned both for their safety culture and for delivering to their customers. It further demonstrates our commitment to growth in this sector and strengthens AMEC's position on the global stage."
TS had revenues of some £70 million in 2011 and its earnings before interest, tax and amortisation were c. £13 million. It will be integrated into AMEC during 2012 and is expected to be earnings enhancing from 2013. It is targeted to achieve its weighted average cost of capital by the second full year.
AMEC plc +44 (0) 20 7539 5800
Sue Scholes, Director of Communications
Nicola-Jane Brooks, Head of Investor Relations
Following on from our recent capital market event, Mike Saunders will be talking in more detail about this acquisition on a conference call on Monday 2 July at 10.30am. No new price sensitive information will be discussed. Further details are available from Laura O'Neill (email@example.com).
Brunswick Group LLP: +44 (0) 20 7404 5959
Notes to editors:
AMEC (LSE: AMEC) is a focused supplier of consultancy, engineering and project management services to its customers in the world's oil and gas, minerals and metals, clean energy, environment and infrastructure markets. With annual revenues of some £3.3 billion, AMEC designs, delivers and maintains strategic and complex assets and employs over 27,000 people in around 40 countries worldwide. See amec.com.
TS focuses on enabling the safe and uninterrupted operation of nuclear reactors and the management of complex nuclear facilities. Some of the world's leading experts in nuclear technology work on the TS team developing many of today's nuclear safety standards.
The company has qualified people who have worked on nearly every civil nuclear site in the UK, and many of its 600 professionals, engineers and scientists are internationally recognised for their expertise.