Amec pays £137m for Serco’s nuclear consultancy
Amec has acquired Serco’s nuclear Technical Services (TS) business for £137m cash.
TS – previously Technical Consulting Services – 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.
TS supports clients from plant design through to construction, operation and then to decommissioning, waste management and clean-up. Current projects include a £10m two-year contract in partnership with Golder Associates to examine and develop plans to clean up contaminated land at Sellafield.
Serco said that the business was expected to achieve only limited future revenue growth in a highly competitive market, under its ownership. Future growth was more likely to come from the construction of new nuclear power stations and so an integrated engineering company like Amec was better placed to help the business grow.
For the year to 31 December 2011, TS made £70m revenue and £13m of adjusted operating profit. The sale price is therefore roughly 10.5 times the adjusted operating profit. Amec said that it is targeted to achieve its weighted average cost of capital by the second full year.
Amec 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."
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This article was published on 29/06/2012 (last updated on 29/06/2012).