Business
Acquisition
Acquisition.
About this update from Morgan Sindall Group Plc
[{"type":"text","content":"\n Morgan Sindall PLC\n04 June 2007\n\nMorgan Sindall plc\n\n\nAcquisition of Amec Developments Ltd and Amec Design & Project Services\n\n\nMorgan Sindall plc ('Morgan Sindall' or the 'Company'), the construction and\nurban regeneration group, is pleased to announce that it has agreed to acquire\nfrom Amec plc (the 'Acquisition'), Amec Developments Limited ('ADL'), a\nmixed-use urban regeneration business, and the assets and certain contracts\nrelating to the Design and Project Services division ('DPS'), a nationwide\nconstruction and engineering business.\n\n\nThe Acquisition\n\n\n • Strengthens three of Morgan Sindall's four divisions and significantly\n increases the Company's scale and capabilities\n\n\n • Creates a leading, UK-wide urban regeneration business\n\n\n - ADL to operate as standalone division aligned with Morgan Sindall's Affordable\n Housing division\n\n\n - Brings large scale urban regeneration skills to Morgan Sindall in long-term\n growth market\n\n\n • Transforms Group's Construction division, creating an integrated design\n and delivery business\n\n\n\n • Significantly develops Morgan Sindall's Infrastructure Services division's\n market leading position particularly in the tunnelling and water sectors\n\n\n\n • Enhances earnings in current financial year*\n\n\n\n • Increases Group's pro forma forward order book at 31 December 2006 to £4.1\n billion\n\n\n\nConsideration\n\n\n\n • Morgan Sindall will pay Amec the net asset value and £55 million goodwill\n associated with ADL and DPS\n\n\n\n • Combined net assets at completion are expected to be a liability of £29\n million, which includes cash of £8 million\n\n\n\n • Consideration payable by Morgan Sindall is £26 million, with the net cash\n outflow of £18 million to be met from existing resources\n\n\n\n\n\nCommenting on the Acquisition, Morgan Sindall Executive Chairman, John Morgan\nsaid:\n\n\n\n'This acquisition is a key strategic next step for Morgan Sindall. It\nsubstantially adds to our existing divisions and opens up significant growth\nopportunities in our construction and regeneration markets. Morgan Sindall\nrepresents an excellent home for ADL and DPS and their employees and customers\nand we look forward to developing further the enlarged group.'\n\n\n\n*This statement should not be interpreted to mean that Morgan Si...