Under the sale agreement, Drees & Sommer expects to complete the 100% purchase of AA Projects by the end of the 2023.
The gradual approach is intended to make the transition smoother for both parties.
Drees & Sommer opened a London office in 2017. It also has an office in Ashford, Kent.
AA Projects has 200 employees across six offices in Manchester, Birmingham, Leeds , Liverpool, London and Oxford. In the year to 31st March 2021 it made a pre-tax profit of £4.1m on turnover of £17.6m. Clients include DHL, Starwood Capital Group, UK Parliament, University of Manchester, Manchester University NHS Foundation Trust, Lancashire Teaching Hospitals NHS Trust and the University of Oxford.
Drees & Sommer has 46 locations in Europe, the Middle East, China and the Asia Pacific, with more than 4,000 employees worldwide and an annual turnover of €517.2m (£429.8m) in 2020.
AA Projects managing director Kenneth Wood said: “AA Projects underwent a Management Buy Out in 2018 which was led by a team of 10 Directors. Since then, we have rapidly expanded our successful business and we now service clients not only locally but also across Europe and the US.
“Our work internationally highlighted the demand in the marketplace for experienced property and construction consultants who are passionate about enhancing people’s lives through the work we do in the built environment. An ever-growing need we have also seen is the requirement to work towards zero-carbon property and built asset solutions.
“It is for this reason that we have decided to join forces with Drees & Sommer, who are at the forefront of European digitisation, sustainability and are paving the way towards a circular economy.
“The tie-up enables us to integrate and expand our service lines and sector expertise through our synergies and joint capabilities, strengthening our multi-disciplinary sustainability led approach.”
Drees & Sommer chief executive Steffen Szeidl said: “We already have two offices in the UK, but our investment in AA Projects will provide significant opportunities to expand our UK business. With this merger, our clients will gain the best of both worlds-the German heritage for quality, precision and engineering combined with the UK’s reputation for flair and innovation in a respected regulated environment. This will cement our position as a leader in sustainability and digitisation, providing opportunities for clients on both sides of the Channel and further afield.”
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