Morgan Sindall acquires parts of Amec

The sale of Amec’s Built Environment businesses has begun with Morgan Sindall acquiring Amec Developments Ltd (ADL), the firm’s mixed-use urban regeneration business, and some contracts from Amec’s Design and Project Services (DPS) division for £26m.

In 2006 Amec announced that it was putting its £1.3bn Built Environment business up for sale. The four businesses seen as non-core are: Building and Civil Engineering; Building and Facilities Services; Property Developments; and PPP.

The deal will see Morgan Sindall acquire 150 ongoing DPS contracts and the firm will complete any substantially completed projects on behalf of Amec.

Morgan Sindall said the deal would strengthen three of its four divisions and significantly increase the firm’s scale and capabilities. The deal increases the firm’s pro forma order book at 31 December 2006 to £4.1bn.

Morgan Sindall will pay Amec the net asset value and £55m goodwill - minus net liabilities of £29m for DPS and ADL means the final figure for the deal is £26m.