MORGAN EST has welcomed the acquisition by parent company Morgan Sindall of two of AMEC's built environment businesses.
The takeover will allow it to bid for more complex project work, said Morgan Est managing director Mark Cutler.
This will signicantly strengthen and extend Morgan Est's design and project capability in the tunnelling, water, and roads sector and will allow us to compete for larger, more complex schemes, ' said Cutler.
AMEC this week conrmed the £55M sale of its property development business AMEC Developments (ADL) and its building and civil engineering business Design and Project Services (DPS).
Of the £55M, £29M will be used to clear the purchased companies' debts and £26M will be put towards acquisitions in the nuclear decommissioning, environmental consulting, and oil, gas and mining markets.
ADL has 65 staff and will form a standalone consultancy within the Morgan Sindall group, while the much larger DPS will be carved up within the group.
At the end of last year DPS's turnover was £758M with a reported loss of £14M. It employs 2,800 staff.
Morgan Sindall intends to make DPS pro table by moving its building staff to education and healthcare specialist contractor Bluestone. DPS's civil engineering contracting capability will move to Morgan Est, while its design team will act as an in-house consultancy for both Bluestone and Morgan Est.
The deal follows AMEC's announcement in December 2006 that it intended to sell off the Built Environment division (NCE 1 December 2006).
Negotiations are continuing for the remaining Building Services and PPP businesses.