AYH focuses on future growth following £21m sale to Dutch giant

Dutch-based consultancy group Arcadis is expected to complete the acquisition of QS and project management firm AYH for £21m by the end of the month.

The deal, news of which first broke in the UK on the QS News website, is for an initial sum of £16m with an earn-out clause of £5m over the next two years.

AYH’s main board, which owns over half of the firm, have agreed to the deal, and it is due to be ratified by shareholders, nearly 80 of which are AYH staff, in the next two weeks. The firm, founded in 1946, posted pre-tax profits of £2.25m on turnover of £21.5m for the year to 31 December 2004.

Director Ian Smith stressed that the deal was not about directors and shareholders cashing in. He said: “This is about building a platform for us to get bigger and stronger, both within the UK and across the globe.”

Smith also stressed that the firm’s management would remain in place and would retain control at the firm. He said: “Our mission was not to get sucked into a multi-faceted engineering company. We will maintain autonomy.”

In a statement released last Friday, managing director Peter Vince said the culture of Arcadis would have a positive affect on the firm. He said: “Arcadis’ approach to encouraging an entrepreneurial environment will be good for the firm, our clients and our staff.”

Arcadis’ approach will be good for the firm, our clients and our staff

Peter Vince, AYH

Smith said AYH, whose most high-profile current job is the new Arsenal Stadium, would slot in to the building division of Arcadis, which makes up 17% of Arcadis’ £600m turnover. He said: “It’s a great opportunity for us to spearhead the growth of the building group.”

The deal follows a relationship between the firms founded in 2003 when Arcadis bought AYH’s German project management arm Homola AYH. The firms then set up an alliance called the worldwide project consulting brand.

Arcadis chairman Harrie Noy said the deal was an important step in the listed group’s history. He said: “This is an important step in the transition of our activities in the buildings segment towards services with higher added value.”

AYH chairman David Thompson, who sold his shares back to the company last year and a led a management buyout at the firm back in 1999, said he was delighted with the deal. He said:

“I am very very pleased that all the staff who backed the MBO back in 1999 are reaping the benefits of that.” Thompson has since joined Exemplar Properties, which has been set up by two former Development Securities bosses, as a non-executive director.