Weekly merger, acquisition, deal update: August 10
This week Morrissey Goodale tracked two domestic deals and two international transactions. This brings the total year-to-date deal count in the United States to 113, up 10% over the 103 domestic deals tracked through the same period in 2011. Including the U.S., the total global deal count is now 205, down marginally from the 207 global deals tracked through the same period last year.
In case you missed it the last few weeks, be sure to click here for Morrissey Goodale’s special report Industry M&A 2012 Six Month Review. In it, you will find additional insight, thoughts and major trends observed through the first six months of 2012.
International design, consulting, engineering, and management services firm ARCADIS (Arnhem, Netherlands) acquired ETEP Consultoria (ETEP) (Sao Paulo, Brazil), a highly specialized water supply, water treatment and wastewater engineering and consulting firm. At an annual gross revenue of just under $25 million, net revenue of just under $20 million, 300 employees and 10% profit margins, ETEP is the largest water engineering and consultancy firm in Brazil. The firm provides program and project management as well as engineering, consulting and related services and derives 83 percent of its revenue from its specialty of water supply, water treatment and wastewater engineering and consulting. ETEP works for public clients including water companies and municipalities, but also works with private sector clients such as contractors and industrial firms. Link to details
Leading independent provider of energy efficiency services, infrastructure upgrades, asset sustainability and renewable energy solutions Ameresco (Framingham, MA) announced that its wholly owned subsidiary Ameresco Canada acquired FAME Facility Software Solutions (FAME) (Calgary, Alberta, Canada), a leading provider of asset management solutions that help customers assess the condition of their facilities, plan energy management and capital improvements, and refine operations and maintenance strategies. FAME also provides expert consulting and technology resources to assist clients with their facility asset management planning, operations, analysis, reporting, and infrastructure auditing and knowledge management technology. Through the acquisition, Ameresco expands its asset planning consulting and software services offerings for commercial, industrial, K-12 schools, public housing, municipal and government customers. Link to details
Earlier this summer, we note that multi-discipline engineering, planning, surveying, mapping and construction services firm Greenman-Pedersen (GPI) (Babylon, NY) acquired multi-discipline engineering, surveying and environmental services firm Abate Associates Engineers and Surveyors (Buffalo, NY). Link to details
In an interesting transaction, engineering, architecture, environmental and construction services firmJacobs Engineering Group (Pasadena, CA) sold its iron ore pelletizing intellectual property and other assets to Metso Corporation (Helsinki, Finland), a 30,000-person global supplier of technology and services to customers in the process industries, including mining, construction, pulp and paper, power, and oil and gas. As part of the transaction, Jacobs sells technology and "know-how" related to their Straight Grate Iron Ore Pelletizing technology to Metso’s mining and construction segment. In addition, some key Jacobs technical staff related to the technology become Metso employees as part of the deal. Jacobs and Metso previously shared interests in the straight grate iron ore pelletizing business, with Jacobs providing process engineering and Metso providing machine design. Jacobs and Metso recognized the opportunity to streamline their offerings to customers by consolidating ownership within Metso through this sale. Jacobs plans to continue supporting Metso from its engineering centers in India and Pittsburgh and to continue supporting customers with Balance of Plant (BOP) engineering and construction services for iron ore pelletizing projects. For reference, iron ore pelletizing is used to produce pellets from concentrated iron ore for feed to blast furnace and direct reduced iron plants. Metso anticipates continued growth in this market as more beneficiation and pelletizing plants are needed to maximize the output from lower grade ore bodies. Metso currently offers the Grate Kiln Iron Ore Pelletizing system. With the purchase of the Straight Grate Technology from Jacobs, Metso will become the only supplier in the world of both systems. Metso will be investing in the on-going technical development of both technologies. Link to details
In a noteworthy initiative (though not considered a deal for the purposes of this update), global engineering, procurement, construction and maintenance and project management services firmFluor Corporation (Irving, TX) formed a joint venture with Construcap (Sau Paulo, Brazil), one Brazil’s largest construction companies serving the oil and gas, infrastructure, power, mining and metals, automotive and manufacturing, general industrial, commercial and heavy civil markets. The companies will combine to provide structured technology process transfer and human resources to the joint venture (named CFPS Engenharia) to bring improved project performance and predictability to Brazilian clients. The joint venture will include the pursuit of new capital projects for the oil, gas and chemicals markets, new power generation, life sciences, automotive and other manufacturing industries and will span engineering, procurement and construction management (EPCM) disciplines. Link to details
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