Imtech to spend £100m on bid to join top three

Dutch group keen to buy either a national M&E operator or several regional ones.

Dutch group Imtech has a £100m war chest for further acquisitions in the UK. The plan is to either strengthen its M&E presence through one national player or a series of regional operators.

Imtech’s policy is to become a top three player in all the European markets in which it operates.

In the UK, Imtech bought Meica and more recently added Goodmarriott & Hursthouse, both profitable M&E groups.

Imtech is keenest to plant a foot around Cardiff, a zone centred on Birmingham and a northern area stretching from Liverpool to Leeds.

The business was set up in 1994 by Jim Steele, chief executive of the £120m-a-year turnover Meica group. He sold to Imtech in 2003 and subsequently moved up to a place on the main board – Imtech has an annual turnover of £2bn.

Imtech approached NJ Bailey, but the group wouldn’t sell. Lorne Stewart, now Kuwaiti-owned, has also been found to be not for sale.

A bid for T Clarke was not considered because of the premium needed in order to acquire a publicly-quoted group and because T Clarke and Meica have too many clients in common.

“We’d consider any of the majors if they are performing well,” said Steele. “What we don’t want is a hospital case. Our margin is 5% net.”

The most likely progress is thought to be the acquisition of three to four regional players each with a turnover in the £30m to £50m band.

“Also, we’d like to broaden our technical skills,” said Steele, “though we’d avoid consultants as they give us much of our work.” Parts of Gleeson held an attraction on this score but “they came with baggage we didn’t want”, explained Steele.

The latest plan is for Trevor Hursthouse to become executive chairman of Goodmarriott & Hursthouse, with Darren Littlehales stepping up to the post of managing director.

In Meica Services, Martin McEvoy is set to become managing director, with Bruno Speed earmarked for a similar post within Meica Process.

[Contract Journal, 11 October 2006, p 12]