Ferrovial buys Enterprise for £385m

Grant Prior 11 years ago
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Spanish contracting giant Ferrovial has bought housing maintenance and utility contractor Enterprise from investment group 3i for £385m.

The deal will double the size of Ferrovial’s UK business Amey creating a company employing 21,000 people with a turnover of £2.3bn.

Enterprise will be integrated into Amey with “cost and revenue synergies” estimated at around £40m.

Íñigo Meirás, CEO of Ferrovial said: “This acquisition fits with our strategic objective of profitable growth through selective acquisitions and it enables us to expand our Services business.

“The deal will strengthen the operations currently conducted via Amey.”

Ferrovial has been operating in the UK since 2000 and acquired Amey in 2003.

It is a major player in the UK market in services to transport and social infrastructure.

It works with public and regulated clients in a range of sectors, including justice, aviation, central government, education and transport and has over 11,000 employees.

Enterprise had a turnover of £1.1bn in 2012, excluding the joint venture with Mouchel, which is not included in this acquisition.

Mouchel has acquired Enterprise’s 50% shareholding in joint venture EnterpriseMouchel which will continue to operate as a fully incorporated company.

Enterprise has 9,600 employees and provides environmental, property and utilities services as well as road maintenance for public and regulated sector clients.

Santiago Olivares, CEO of Ferrovial Services, said: “The acquisition of Enterprise will create value through synergies derived from integrating it into Amey.

“The deal strengthens our position in markets with growth potential. In terms of client types, range of services and geographical footprint, the two companies are highly complementary and offer great potential to share resources.

“The newly combined company will have the capability to offer our clients added value integrated services in an efficient way.”

Ferrovial Services will appoint Mel Ewell, current CEO of Amey, as CEO of the newly combined company once the transaction is completed.

Ewell said: “This acquisition will be pivotal for the UK marketplace, creating a business with the breadth and depth of service to respond to today’s market dynamics.

“Public and regulated clients are seeking radical reform in the shape of more efficient services which don’t compromise on quality or the service to the public.

“Our leading asset management and consulting capability, paired with Enterprise’s additional range of services, will ensure that the combined company can deliver a truly transformational service.”

Closure of the transaction is subject to approval by the European Commission.

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