ARCADIS STRONGLY EXPANDS IN ASIA THROUGH MERGER WITH DAVIS LANGDON & SEAH
(Thomson Reuters ONE) -
ARCADIS (EURONEXT: ARCAD), the international consultancy, design, engineering
and management services company, today announced that it has signed a merger
agreement through which it acquired the ownership of Davis Langdon & Seah
("DLS"), a cost and project management consultancy working across Asia, with
2,800 people in 10 countries. DLS 2011 revenues were over US$125 million, with
normalized operating margins well above the ARCADIS target level. The business
was owned by 15 international partners and 42 local partners that will all stay
with the company to build a joint future with ARCADIS.
ARCADIS has financed this merger by issuing 2.2 million shares to the DLS
partners, in addition to an undisclosed cash amount through existing credit
facilities. The shares have lock-up periods of 12 to 36 months after closing.
The transaction is expected to be immediately accretive to earnings per share
(based on net income from operations, which excludes amortization). Further
financial details were not disclosed.
Established in Singapore in 1934, DLS is the longest established and largest
cost/project management and quantity surveying consultancy in Asia. The company
has 37 office locations with major positions in mainland China (14 offices,
1,050 people), Hong Kong/Macau (2 offices, 400 people) and other parts of Asia
(21 offices, 1,350 people), including Singapore, Philippines, Thailand, Vietnam,
Indonesia, Korea, India and affiliates in Malaysia and Brunei. The company holds
the #1 or #2 market position in its field of activities in all countries where
it operates.
In addition to its core activities, the company provides cost engineering
services to the oil, gas and petrochemical industries and due diligence advisory
services and dispute resolution/litigation support. DLS clients are primarily
local and international property developers, government agencies, public
utilities, financial institutions and leading international corporations in the
hotel and resort, technology, petroleum and communications sectors.
Through this merger, ARCADIS grows to well over 21,000 professionals and ?2.4
billion in revenues, with 3,500 people across Asia. The DLS operations are
complementary to our existing activities in Asia, including RTKL and EC Harris,
with many synergy opportunities. These include the expansion of the Built Asset
Consultancy services of EC Harris and using the Asian platform to further grow
other core ARCADIS services in Water and Environment. Furthermore, we anticipate
significant synergies in supporting our combined multinational clients, having
now a greatly expanded footprint, capacity and services offering throughout the
region.
The merger also fits ARCADIS' strategic goal to build a leading global position
in program management and related services. ARCADIS, including EC Harris and
DLS, now has some 8,000 professionals in this service area and leading market
positions in most major geographic markets throughout the world including
Europe, Middle East, Asia, US and Brazil.
The DLS leadership team will remain in place, with Mr. Joseph Lee as Chief
Executive Officer, who will also join the ARCADIS Senior Management Committee.
The other partners will continue as Regional and Country Directors.
ARCADIS CEO Harrie Noy said: "This merger meets our long-standing strategic
ambition of expanding our presence in Asia and brings an excellent and well-
known brand with substantial experience in the region. We now have an
established and highly successful platform for further expansion of our business
in Asia. The strong urbanization and social infrastructure development in this
part of the world are major drivers for growing demand for services in all our
business lines."
Joseph Lee, DLS CEO added: "This opportunity is unique as ARCADIS brings us
additional capabilities and experience, which allows us to further expand our
business by diversifying our service offering. This will benefit our clients, as
well as our staff. In addition, we obtain access to new multinational clients
that seek to invest in the countries where we are well established. We are
confident of the success of this merger because of our similar values,
cooperative culture and our joint commitment to service excellence, staff
development and financial performance."
Neil McArthur, ARCADIS Executive Board Member who will succeed Mr. Noy as CEO
upon his retirement in May commented: "This merger creates a strong platform for
growth with ample opportunities for synergies for the benefit of our combined
clients throughout one of the most dynamic regions in the world. DLS's rich
history and long track record of success fit well with ARCADIS. I welcome all of
the DLS leaders and staff and look forward to our combined future."
For more information please contact Joost Slooten at +31 (0) 20 2011083, or
outside office hours at +31 (0) 6 27061880 or joost.slooten(at)arcadis.com
About ARCADIS:
ARCADIS is an international company providing consultancy, design, engineering
and management services in infrastructure, water, environment and buildings. We
enhance mobility, sustainability and quality of life by creating balance in the
built and natural environment. ARCADIS develops, designs, implements, maintains
and operates projects for companies and governments. With 19,000 people and ?2.3
billion in revenues, the company has an extensive international network
supported by strong local market positions. ARCADIS supports UN-HABITAT with
knowledge and expertise to improve the quality of life in rapidly growing cities
around the world. Please visit: www.arcadis.com
Click here for pdf version of the press release:
http://hugin.info/132839/R/1601355/505634.pdf
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originality of the information contained therein.
Source: Arcadis N.V. via Thomson Reuters ONE
[HUG#1601355]
Unternehmensinformation / Kurzprofil:
Datum: 11.04.2012 - 09:00 Uhr
Sprache: Deutsch
News-ID 133717
Anzahl Zeichen: 7005
contact information:
Town:
Amsterdam
Kategorie:
Business News
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