AMEC Offer to Purchase Nuclear Services Business NNC Holdings
Including share option holders this represents 91% of the equity on a fully diluted basis. The offer is expected to become unconditional in early July 2005.
The cost of the acquisition will be £25.3 million plus net debt at the time of completion. Net debt at 31 March 2005 was £12.7 million. The acquisition will be funded from AMEC's existing banking facilities.
"This strategic acquisition will strengthen AMEC's nuclear services business and position the company to secure a substantial slice of the annual £2 billion operations, maintenance and decommissioning spend soon to be available to the private sector in the UK," said Sir Peter Mason, Chief Executive of AMEC. "NNC's reactor services division adds a new dimension to our portfolio and, with governments across the world seeking to re-invest in the nuclear industry, we are well placed to benefit from significant new international opportunities."
NNC, which employs around 1,000 people, provides engineering solutions and safety consultancy services throughout the life cycle of nuclear facilities in the UK, Canada and across the former Soviet Union. In the year ended 31 March 2005, it generated an unaudited operating profit of £5.6 million on a turnover of £86.6 million.
The acquisition will complement AMEC's existing strength in the UK and French markets, where it has worked with British Nuclear Fuels (BNFL), the United Kingdom Atomic Energy Authority (UKAEA) and Electricité de France (EDF) for several decades.
The shareholders of NNC are 3i (51%), BNFL (15%) and Management (34%).
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