Acquisition Resources

Amec, the international project management and services company, and SPIE have announced that they have agreed terms for the sale of Amec's Building and Facilities Services business to SPIE for a cash consideration of £117m. Completion is expected to take place by mid- September, once the consultation process with employee representatives in the UK and France has been completed. Proceeds from the transaction will be held on deposit. 

All four of Amec's principal non-core Built Environment businesses have now been sold. 

The sale of the non-core activities will generate a total cash consideration of approximately £320m, before costs and taxes and subject to receiving all necessary consents. 

AMEC Chief Executive, Samir Brikho, said "Amec has today achieved an important milestone, bringing us closer to delivering our commitment to a 6% margin in 2008. By concluding the divestment of the non-core Built Environment businesses, Amec is positioned for the next phase of its strategy which is to become a leading supplier of high value consultancy, engineering and project management services to the world's energy and industrial process markets. 

It is also an excellent outcome for BFS and its employees and customers. SPIE is a market leader in the provision of multi-technical services in Continental Europe and is committed to developing successfully the BFS business in the UK." 

BFS provides multi technical engineering services from initial design, through construction, mechanical and electrical installation services, to long-term hard FM services across a wide variety of market sectors for clients with specialised requirements for highly engineered facilities. An example is the provision of mechanical and electrical systems at London Heathrow Airport's Terminal 5. BFS operates from a UK branch network incorporating Glasgow, Edinburgh, London, Birmingham, Bristol and Manchester. Clients are mostly in the private sector and include BAA, Barclays, Interserve, JP Morgan and UBS. 

The management team, which is led by Grahame Ludlow, is remaining with the business. For the year ended 31 December 2006, BFS had approximately 2,300 employees and generated revenues of £333m and profit of £10m before interest, tax and intangible amortisation and exceptional items. Gross assets as at 31 December 2006 were £56m.