Amec has announced that it is selling its Spie division to a new company funded by European equity firm PAI Partners for £707 million. The Transaction is expected to close in the third quarter of 2006.
Amec originally announced its decision to initiate the sale in November 2005. The income from the deal will enable Amec to wipe out its £420 million debt. The transaction is part of strategic restructuring which will result in Amec’s remaining operations being separated into two entities.
Amec Spie provides electrical engineering, communications services and specialist activities in the energy and rail industries, predominantly in France. It has approximately 23,000 employees and operates from approximately 380 European locations. In 2005, Amec Spie generated revenues of £1,755 million.
On completion of the transaction Jean Monville, Chairman of Amec Spie and a Director of Amec, will resign from the Board to concentrate on running Spie under its new owners.
In accordance with the requirements of French Law, Amec Spie management will now undertake the process of consultation with Amec Spie’s Workers’ Councils.
Once this consultation process is completed, the transaction will then be conditional on, amongst other things, the approval of Amec’s shareholders which will be sought at an Extraordinary General Meeting, and the fulfilment of certain anti-trust regulatory clearances.