Mining Magazine > Panorama > AMEC to buy MACTEC

AMEC recently announced today that it has agreed to buy MACTEC, a leading US engineering and environmental services company, from its private equity and other individual shareholders for a cash consideration of US$280 million. Completion is subject to regulatory approval and is expected by the end of June 2011.

Headquartered in Georgia, MACTEC provides a similar wide range of services to AMEC's existing Earth & Environmental (E&E) business, including environmental planning, assessment and remediation, infrastructure engineering, water resources and construction support services. It has a broad range of high-quality, long-term clients operating in the energy, commercial/industrial, transportation/infrastructure and federal sectors. In 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.

AMEC Chief Executive, Samir Brikho, said: “This acquisition is fully aligned with AMEC's Vision 2015 growth strategy and provides AMEC with the right scale to service this important and growing environmental and infrastructure engineering services market.”

Ann Massey, President and Chief Executive Officer of MACTEC said: “We are very excited to add MACTEC's technical capability, resources, and customer base to AMEC's successful business. Together, we offer a strong, global platform of consulting, engineering, and project management expertise. The close alignment between our companies' cultures, services and expertise will provide immediate value to our customers and foster future growth.”

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.

Ms Massey and her management team are expected to remain with the combined entity and contribute to its continued growth.