Jacque Hinman defends acquisition despite recent revelation that UK firm was 拢71m in the red
The boss of CH2M Hill has defended the firm鈥檚 decision to pay 拢124m for Halcrow despite its financial woes.
Last week, it emerged that engineer Halcrow was 拢71m in the red in the year it was bought by US giant CH2M Hill.
Accounts filed at Companies House, six months late, showed the firm had net liabilities of 拢177m in the year to 31 December 2011 down from net assets of 拢25m the previous year, driven by a mounting pension liability of 拢180m.
The president of CH2M Hill鈥檚 international division, Jacque Hinman (pictured), told 黑洞社区 this week that it was nevertheless a good decision to pay 拢124m for the struggling UK engineer.
She said: 鈥淚t was well known within the industry that Halcrow had marketplace challenges prior to its acquisition by CH2M Hill in November 2011. Its results for 2011 are simply the final snapshot of this period in its history.鈥�
鈥淐H2M Hill acquired Halcrow based on its excellent technical reputation, experience base, and strong client and project portfolio around the world, as well as its highly skilled people, who have been fully integrated into CH2M Hill.鈥�
Halcrow had seen its pensions liability grow from 拢65m in 2010 to 拢180m in 2011, but Hinman said the parent firm was now taking steps to support the pension scheme.
She said: 鈥淪ince the acquisition the previously agreed payment schedule has been honoured every month including the planned uplift in contributions in 2012 and 2013.鈥�
But Stephen Brichieri-Colombi, chairman of the Halcrow Pensioners Association, said he was sceptical about the effectiveness of CH2M Hill鈥檚 efforts to bolster the pension scheme.
He said: 鈥淲e have no way of knowing what the contributions to the Halcrow pension scheme from CH2M Hill have been since 31 December 2011, since the triennial valuation report of the Halcrow pension scheme, due (by law) by 31 March at the latest, has not been published.鈥�
She said: 鈥淪ince the acquisition the previously agreed payment schedule has been honoured every month including the planned uplift in contributions in 2012 and 2013.鈥�
But Stephen Brichieri-Colombi, chairman of the Halcrow Pensioners Association, was sceptical about the effectiveness of CH2M Hill鈥檚 efforts to bolster the pensions scheme.
He said: 鈥淲e have no way of knowing what the contributions to the Halcrow Pension Scheme from CH2 Hill have been since 31 December 2011, since the triennial valuation report of the Halcrow Pension Scheme, due (by law) by 31 March at the latest, has not been published.鈥�
To read the full interview with Jacque Hinman click
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