AMEC, the international engineering and project management company, announces 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.
