Dutch engineering consultancy Arcadis has announced it is to acquire UK-based consultancy EC Harris.
Through the merger, Amsterdam-based Arcadis will grow to almost 19,000 employees and €2.3 billion in revenues. Combined, the two companies will obtain a top five global position in strategic advisory and project delivery services for built assets, Arcadis said.
Headquartered in London, EC Harris provides consulting and management services for the realisation and operation of buildings, manufacturing and processing plants and infrastructure facilities. Its revenues for the year ending April 2011 were €290 million.
Owned by about 180 partners, EC Harris currently employs around 2,600 people worldwide. The company has 48 offices in 28 countries, including Qatar, Saudi Arabia, the UAE, Egypt, Hong Kong, China, Singapore and Taiwan.
The company has recently focused on international diversification, resulting in growth in Asia and the Middle East. In the current year, EC Harris’s activities in these regions are expected to provide around 32 per cent of the company’s revenues, with 57 per cent coming from the UK and 11 per cent from other European countries.
Specifically, EC Harris’s activities include strategic and advisory services, cost consultancy, project and programme management and transactional support. The company provides full lifecycle services to built assets in the property, public, transportation, water and industrial sectors.
Commenting on the merger, Arcadis CEO Harrie Noy said: “This merger is a major step forward in realizing our strategic ambitions. With EC Harris we get a leading position in project management and related services while their built asset consultancy approach perfectly fits our goal of expanding our services at the high end of the value chain.”
He continued: “With the expansion of our footprint in the Middle East and Asia we can capitalize on the growth opportunities in these markets. Our strengthened position in the UK market will allow us to provide a wider portfolio of services to the clients of our combined firms. We welcome the strength of the EC Harris brand and the leadership they bring to Arcadis and are excited about the synergy opportunities.”
Philip Youell, CEO of EC Harris, said: “This is a unique deal that will accelerate our vision and plans for growth. Whilst we have been successful in winning some very large programs of work and have many more in the pipeline, the demand from our clients is such that we recognized that we needed to grow and develop internationally, at a much faster rate than we are currently.
“We have received a number of approaches from large international companies in the past, but Arcadis is the only one that has been right culturally and strategically for EC Harris, it is an exceptional fit.”
The merger is dependent upon EC Harris partner approval and related closing requirements. Completion is expected by November 2011.
