AMEC seals £137m Serco nuclear deal

AMEC has completed the acquisition of Serco’s North West-based nuclear operation for £137m.

The two companies announced last month they were in talks over a potential deal for the £70m turnover Technical Services unit, which has its HQ at Risley, Warrington and provides consulting and project solutions primarily to the UK civil and defence nuclear markets.

The unit generated ebitda of £13m last year and has around 600 staff at a number of sites around the country. Customers include 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 the company’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.”

AMEC said the business would be integrated during thr remainder of this year and the deal is expected to be earnings enhancing from 2013.

Serco said in a statement: “Under Serco’s continued ownership the business was expected to achieve limited future revenue growth in a highly competitive market, where future growth is likely to be more
orientated toward the civil market and in particular the build of new nuclear
power stations.

“Therefore an integrated engineering company such as AMEC plc
will be better placed to benefit from this shift, given the breadth of their
support to the energy market.”

A team from the Manchester office of law firm Pinsent Masons advised AMEC on the deal.

Led by office head Helen Ridge the team included Anna Whetham and included Amie Norris, Jon Robinson and Phil Birchall.

Helen Ridge commented “We are delighted to have supported AMEC again on a strategic acquisition as it continues to expand its clean energy business”.
 

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