AMEC to sell two built environment businesses to Morgan Sindall UPDATE

LONDON (Thomson Financial) - Construction group Morgan Sindall PLC today said it will acquire AMEC PLC's property development business, AMEC Developments (ADL), and its building and civil engineering business, Design and Project Services (DPS), for around 26 mln stg.

The company said it will pay the net asset value and 55 mln stg goodwill related to the businesses, which are two of the four built environment businesses AMEC has been looking to sell since December 2006 under its ambitious divestment programme. AMEC will compensate in cash for ADL and DPS' 29 mln stg in net liabilities.

In a conference call this morning, Morgan Sindall finance director David Mulligan said the acquisition will strengthen three of its four divisions and 'significantly' increase its scale and capabilities.

'This acquisition propels us into the top five',' he said. 'We are creating a strong and market leading business in urban regeneration and construction.'

Mulligan said ADL was 'a real gem' that will create a UK-wide market leading urban regeneration business, while describing DPS as 'a natural fit' with the company's construction and infrastructures services divisions.

'Aligning ADL's expertise in mixed use developments with Affordable Housing's mixed tenure residential skills will create a leading force in urban regeneration across the whole of the UK,' he said.

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Source:
http://www.hemscott.com/news/latest-news/item.do?newsId=44770739248500