Contractor acquires 550-strong Rhead Group which generated revenues of £63.5m in 2014
Costain has acquired the 550-strong professional services consultancy Rhead Group for £36m.
The firm, which works in infrastructure, construction and asset management programmes in the UK, includes clients such as the National Grid, BAE systems and Wales & West Utilities. It offers programme and commercial management services.
Rhead Group will be fully integrated into Costain and will form part of the Natural Resources division. In the year ended 31 July 2014 the firm generated revenues of £63.5 million and EBITDA of £5.2 million.
Andrew Wyllie CBE, Chief Executive of Costain, commented: “We are delighted to announce the acquisition of Rhead Group which has a well-established reputation for its collaborative approach, focus on innovation and service delivery excellence.
“This transaction accelerates the development of Costain and further broadens our range of capabilities to meet the requirements of major blue chip customers, providing greater ability to deliver integrated solutions across the full lifecycle of a project.”
The Rhead Group acquisition has been funded from Costain’s existing cash and debt facilities. The firm’s senior management team including CEO Nigel Curry will remain with the business.