AMEC acquires environmental practice of 2,600 people in U.S.

AMEC, which is headquartered in the United Kingdom but has a large presence in Canada, is acquiring MACTEC, a leading U.S. engineering and environmental services company based in Georgia.

MACTEC has 2,600 employees in 70 offices, mostly in the eastern part of the U.S., and operates a similar wide range of services to AMEC’s existing Earth & Environmental business.

In a press release, AMEC says: “North America, E&E has previously had a stronger presence in the Western US and in Canada, so the combination allows AMEC greater access to new customers and regions and MACTEC a better international platform for growth.”

Neil Bruce, Chief Operating Officer of AMEC, said: “MACTEC and E&E are highly complementary businesses, in terms of geographic footprint, customer base and service offering. … The combination will provide great opportunities to grow our position with existing clients and attract new ones, through our proven life-of asset expertise and scale.”

The purchase was made for US$280 million and is expected to be completed by the end of June.

At 31 December 2010, MACTEC’s gross assets were US$283 million and its earnings before interest and tax in 2010 were US$32 million. The business will be integrated into AMEC during 2011. It is expected to be earnings enhancing immediately and to achieve its weighted average cost of capital by the second full year.

The release said that Ms. Ann Massey, president and CEO at MACTEC, as well as her management team, is expected to remain with the combined entity.

AMEC has also announced it has a new chairman, starting June 1. John Connolly is taking on the role after retiring as chief executive of Deloitte UK and Global Chairman of Deloitte Touche Tohamatsu. He succeeds Jock Green-Armytage as chair of AMEC.