alert

We're now Amec Foster Wheeler
Please visit our new website at amecfw.com

Utilities

AMEC announces agreement to acquire leading Australian resources engineering and project development company GRD Limited

20 July 2009


London, United Kingdom, (20 July 2009) - AMEC plc, the international engineering and project management company, today announces that it has signed an agreement for the acquisition of leading Australian engineering and project development company GRD Limited (GRD), by way of a scheme of arrangement. Total consideration for the transaction, which has been unanimously recommended to GRD shareholders by the Board of GRD, will be A$106 million (£52 million) in cash, funded from existing AMEC cash balances.

GRD is an ASX listed engineering company based in Perth, Australia, which employs 850 people globally.

GRD’s main business is GRD Minproc, a world class engineering and project delivery business specialising in the design, procurement and construction of mineral projects, with primary operations in Australia, Africa and South America. GRD also owns Global Renewables, a development company specialising in the recovery of resources from municipal solid waste.

The combination of AMEC’s existing Australasian oil and gas business with GRD Minproc will create a significant player across the natural resources sector in the region, with the capability to take advantage of the substantial opportunities available in this important resources market. The acquisition of GRD Minproc will also greatly increase AMEC’s project delivery capabilities in Africa and build on AMEC’s existing presence in South America.

The ability to draw on GRD Minproc’s internationally recognised expertise in project engineering, particularly in copper, gold, uranium, nickel and iron, will also cement AMEC as the partner of choice for minerals projects.

Samir Brikho, AMEC Chief Executive said: “The capabilities and geographic coverage of GRD are highly complementary with AMEC’s existing business and the acquisition is a further step towards the delivery of superior outcomes for clients in our chosen geographies and commodities.”

Neil Bruce, Chief Operating Officer for AMEC’s Natural Resources Division, added:
“The acquisition of GRD, and the calibre of people within the company, allows AMEC to expand our Natural Resources business across Australasia and Africa whilst further enhancing our Mining presence and capability in South America."

Cliff Lawrenson, GRD Group Chief Executive said:
“We see AMEC as a world leader in its field and a natural partner for GRD given our complementary skills and service offerings. This transaction will deliver our people a great opportunity to consolidate the strength of our position and expand into new markets and new sectors as part of the broader AMEC group.”

The transaction is subject to GRD shareholder approval and satisfaction of certain conditions precedent, including customary regulatory approvals. It is expected that the transaction will become effective around mid-October 2009.


- Ends -



Return to topTop