UK-based AMEC PLC plans to acquire the environmental consulting subsidiary of New York-based Odgen Corp. for $17.5 million, AMEC announced Tuesday. AMEC said the acquisition would more than double its US environmental and geotechnical engineering capability. Ogden sold the subsidiary as part of a strategy to divest its non-core businesses and focus on its role as an energy company.
The acquisition will provide AMEC 27 US offices, 650 professionals, and annual revenues of $80 million, said AMEC. Currently, AMEC operates 19 earth and environmental offices in the western United States and 41 in Canada.
The Ogden purchase brings AMEC's total earth and environmental consulting staff in North America to 2,200 and annual revenue in the earth and environmental area to more than $200 million. Including all subsidiaries, AMEC operates more than 150 offices throughout North America.
"AMEC will benefit from OEES's experience and established relationships with the government services sector as well as with commercial and state and municipal clients," said Roger Jinks, president of earth and environmental at AMEC.
The subisidiary performs environmental risk assessment, hazardous waste remediation, natural resource planning, and water resources engineering, which complement AMEC's existing business lines. The offices will operate under the AMEC brand name.
The transaction is expected to close in 30 days. AMEC said $15 million of the purchase price would be paid at closing, and an additional $2.5 million to be paid 6 months later, subject to certain contractual conditions.
