Imtech takes first step in Ireland with the acquisition of Suir Engineering
Press release
Gouda, The Netherlands - lmtech N. V. (technical services provider in Europe) announces that it has acquired the Irish based Suir Engineering Limited. lmtech is taking over the entire issued share capital from its present shareholders. With 550 employees, Suir generated revenue of 68 million in the financial year ended to 31 July 2007. The acquisition price (including earn out) is based on a multiple of over six times normalised EBITA of 2007. The acquisition will contribute immediately to the lmtech earnings per share.
René van der Bruggen, Chairman of the Board of Management of Imtech, is pleased with the acquisition: ‘For us Ireland is an attractive and fast growing market in which, based on our strategy, we would like to be active. Suir Engineering is one of the largest E&l contractors in Ireland with a technological tradition that fits in seamlessly with that of lmtech. Although active in many sectors, the business has particular expertise in the rapidly growing pharmaceutical industry. Suir works for nearly all the reputable pharmaceutical companies and supplies high added value. Via lmtech, Suir can further expand its services provision and follow its international pharmaceutical clients in Europe through Imtech‘s existing infrastructure.’
Strategy
lmtech recently presented an update until 2012 to its strategy. This update included not only strategic strengthening of the company’s position in some of its existing home markets (particularly the UK, Spain and Eastern Europe) but also incorporated efforts aimed at building up a position in Ireland. This was decided because this country meets the lmtech criteria for market volume and expectations, investment climate, business culture, and availability of good acquisition candidates. With the acquisition of Suir, lmtech takes a first step into Ireland. The Irish economy has consistently showed a level of economic growth above the European average for the last number of years. Investments in technology have showed an even higher growth. A structurally high level of investment is also expected for the future. The establishment of substantial economic incentive programmes also adds to the market’s appeal.
Profile of Suir Engineering
Suir Engineering is an electrical engineering, instrumentation and mechanical contractor (E&l contractor) providing a complete range of services including design, project management, installation and maintenance to commercial, industrial, institutional and government bodies. Suir Engineering has significant experience in a broad range of sectors including pharmaceutical, bio-pharmaceutical, medical devices, retail, airports, hospitals, rail and office development. The Company operating from its headquarters in Waterford City and an office in Dublin employs over 550 people. The business is predominantly conducted on the island of Ireland however in recent years the Company has also completed contracts in the UK and in Continental Europe.
Suir Engineering is a leading player in its sector with an establish track record spanning over 25 years. This experience has been gained through the completion of high profile projects for blue-chip clients across many different sectors like Aer Rianta (Cork Airport & Dublin Airport), the Beacon Court Clinic, larnrod Eireann, Edenderry Power Station, I.B.M., O.P.W/ Department of Health, Intel, Wyeth, Bausch & Lomb, Genzyme , Johnson & Johnson Guidant/Abbott.
Synergy
The combination of Suir Engineering’s experience with the scale and wider potential services offering of Imtech will enhance the ability of the Company to tender for larger, more complex projects both domestically and internationally. This transaction will also ensure the long-term growth and survival of a business with a strong tradition of quality and success. The existing management of Suir believe in this success and have committed to stay with the business post completion of the transaction. The European wide technical expertise of Imtech will complement Suir Engineering’s skills, for example in the fields of energy contracting, warehousing, traffic management systems and the technological equipment for laboratories.
Status
The transaction, which is subject to approval from the Irish Competition Authority, is expected to be completed by the end of the fourth quarter of 2007. The senior management of Suir have agreed to stay on after the acquisition. This will guarantee continuity. All those involved see positive opportunities for growth.
Jim Steele, Chairman Executive Board, lmtech UK commented:” We are pleased to have acquired Suir which is a respected engineering company in Ireland. Its business is complementary to lmtech and provides cross opportunities. As an Irishman I am pleased to bring lmtech to Ireland and can assure staff, customers and suppliers alike, of Imtech’s integrity in this acquisition. It makes Suir a key player and provides a strong platform in Ireland for Imtech. We always keep in mind that Suir Engineering is an Irish company and will remain an Irish company through which lmtech will target future growth in Ireland.’
Commenting on today’s announcement Eddie Walsh, Managing Director of Suir Engineering said: ‘The combination of Suir Engineering with lmtech provides an excellent opportunity for both the clients of Suir and the employees of the Company. Our clients will benefit from the potential addition of new services and the ability of the Company to leverage off the scale and expertise of an international player. The employees will benefit from the opportunity this association will create for the business in Ireland and overseas. Most importantly, this deal will guarantee the continued success and growth of Suir Engineering into the future.”
Suir Engineering was advised by Davy Corporate Finance. Commenting on today’s announcement Nicholas O’Gorman of Davy Corporate Finance said: ‘This deal underlines the confidence that international investors have in Ireland and in particular the continuing attractiveness of the construction sector.’
Further information
Jim Steele Nicholas O’Gorman
Group’s Chief Executive lmtech UK Davy Corporate Finance
Telephone: 1 (0) 1784 229 903 Te +353 (0 I 6796363
E-mal: James.steele@meica.co.uk E-mail: Nicholas.o‘gorman.ie
www.imtech.eu
Imtech Profile
lmtech N. V. is a European technical services provider in the fields of electrical engineering, ICT (inform at/on and communication technology) and mechanical engineering. With approximately 17,000 employees, lmtech realises annual revenue of 3 billion euro. lmtech holds strong positions in the buildings, industry, infrastructure/mobility markets in Belgium, Germany, Luxembourg) the Netherlands, Eastern Europe, Spain and the UK and in the global maritime market lmtech provides services to a total of 12,000 clients. lmtech offers added value in the form of integrated and multidisciplinary total solutions that lead to improved operating processes and higher yields for clients and their clients in return. lmtech also provides solutions that contribute to a sustainable, liveable society, for example in the field of energy, mobility, safety and the environment lmtech shares are listed on the Euronext Stock Exchange (Amsterdam), where lmtech is included in the Amsterdam SmallCap Index (AScX) and the Next 150 index.