AMEC, the international engineering and project management company, has announced the acquisition of Entec Holdings Ltd, a leading UK-based environmental and engineering consultancy for an initial cash consideration of £61.2 million. Arrowpoint Advisory Partners advised the shareholders of Entec on the sale.
Entec has a leading position in the water services and wastewater sector. It also provides renewable, nuclear and other energy services, industrial engineering, contaminated land and regeneration services, environmental planning and project management services. Entec's customers span government agencies, utility and private sector companies, and the acquisition will strengthen AMEC's relationships with existing customers, as well as provide access to new ones. It has some 700 professional employees and is headquartered in Newcastle with 14 offices across the United Kingdom.
Entec was the subject of a management buy-out in November 2005 from Northumbrian Water led by senior managers Simon Armes-Reardon, Doug Morton and Barry Canfield backed by structured equity investors Growth Capital Partners. The acquisition by AMEC has been made on a cash free/debt free basis and the consideration has been settled in cash. Further payments may be made, subject to retention and performance.
With annual revenues of over 2.5 billion, AMEC (LSE: AMEC) designs, delivers and maintains strategic and complex assets for its customers. The company employs over 21,000 people in around 40 countries worldwide.
“Acquiring Entec Holdings Ltd is another important step in our strategy of enhancing our water and environmental consulting capabilities internationally,” said Roger Jinks, President of AMEC's Earth & Environmental division.
Welcoming the news, Armes-Reardon, Entec's Managing Director, said: “This acquisition is very important for our continued growth; clients are increasingly looking to work with companies that deliver a greater depth of services and we look forward to our continued development within AMEC. Being part of such a broad business also offers attractive new career development opportunities for our employees and provides us with the ability to pursue large and exciting new projects.”
James Blake, Partner at GCP, commented: “This exit is a great outcome for our fund. Entec has significantly outperformed the original business plan through a combination of top quality management and the positive drivers for demand in water, waste and energy. The team has done an exceptional job, growing profits organically by over 6m since the buy-out." He concluded: "Arrowpoint Advisory had an excellent knowledge of potential buyers in the sector and played an important role in cultivating the relationship with AMEC that has resulted in this deal.”
Entec is Arrowpoint Advisory's third environmental sector transaction in 15 months following the sales in 2009 of Sustainable Finance and McKinnon & Clarke.