黑洞社区

Morgan Sindall today confirmed that it has agreed to buy Amec鈥檚 construction business and regeneration division for a total of 拢26m.

Morgan Sindall will integrate Amec鈥檚 loss-making construction business, which employs 2800 people, within its own construction business and the management team led by managing director John Moss will remain.

The regeneration business, Amec Developments, will operate as a standalone business but will be aligned with Morgan Sindall鈥檚 existing affordable housing business. It employs 65 people and the existing management team will remain.

Morgan Sindall was first tipped by 黑洞社区 in January as frontrunner to buy Amec鈥檚 construction and regeneration business.

Morgan Sindall chairman John Morgan today said: 鈥淭his acquisition is a key strategic next step for Morgan Sindall. It substantially adds to our existing divisions and opens up significant growth opportunities in our construction and regeneration markets.鈥�

He added that the deal would give Morgan Sindall access to key new clients including BAA and the MoD.

Morgan Sindall will pay 拢55m of goodwill for the two businesses, and Amec will pay Morgan Sindall 拢29 for liabilities. Therefore the total payment by Morgan Sindall will be 拢26m.

In terms of construction Morgan Sindall has agreed to buy 150 of Amec鈥檚 existing contracts as well as its future 拢800m pipeline of projects.

For the year ended 31 December 2006 the construction business made an operating loss of 拢27.4 million on turnover of 拢685.4 million. The operating loss included losses of 拢24.1m relating to unprofitable contracts which have been completed or excluded from the transaction.

In the same period the regernation business achieved an operating profit of 拢32.3 million on turnover of 拢72.2 million.