Partner Article

Newcastle’s Entec sold to AMEC

International engineering giant AMEC has snapped up a Newcastle-based environmental engineering consultancy for £61.2m.

The FTSE100 firm has bought North East group Entec from investment company Growth Capital Partners on a cash free/debt free basis and further payments may be made, subject to Entec’s performance.

“Acquiring Entec Holdings Ltd is another important step in our strategy of enhancing our water and environmental consulting capabilities internationally”, president of AMEC Earth & Environmental division, Roger Jinks, said.

According to AMEC, Entec has a strong position in the water services and wastewater sector, and the acquisition will strengthen AMEC’s relationships with existing customers as well as provide access to new ones.

Entec will form part of AMEC’s Earth & Environmental division. The company believes the acquisition will be immediately earnings enhancing, and it is expected to meet its weighted average cost of capital in the first full year post acquisition.

Entec currently has approximately 700 employees and 14 offices across the country.

It was spun out of Northumbrian Water in 2005, when it was sold to its management team for £30m.

This was posted in Bdaily's Members' News section by Ruth Mitchell .