Dyer & Butler has entered into an agreement to be acquired by a holding company of First Reserve, a global private equity investment firm that specialises in energy and infrastructure investments.
Dyer & Butler said that it expected the new ownership and associated company structure to give it “greater scale and resources to support continued growth”.
Much of Dyer & Butler’s work is for regulated clients in the airports and rail sector. It has long-term framework contracts with Heathrow Airport , Gatwick Airport, Network Rail, London Underground and Transport for London.
Managing director Neil Edwards said: “This represents an exciting step in our continued development and, with the additional support of First Reserve and our sister company Morrison Utility Services, we have the opportunity to strengthen and accelerate the growth of our business.”
Jim Arnold, chief executive of Morrison Utility Services, is joining the Dyer & Butler board. He said: “Dyer & Butler has forged an excellent market reputation for the successful delivery of construction services in regulated, safety critical sectors. Its competent workforce operates across a diverse range of sectors. I’m delighted to welcome Dyer & Butler as a sister company and look forward to working with and supporting the existing team to help grow their business.”
In the year to 31st October 2015, Dyer & Butler generated £113m revenue (20914: £108m) and made a profit before tax of £3.1m (2014: £3.0m). Robert Dyer and David Butler both retired from the board at the end of 2014 but had remained major shareholders, along with the management team.