Morgan made the comments after Morgan Sindall bought Pipeline Constructors for £16.5m last month as part of its strategy to grow the infrastructure services division, Morgan Est. He said the acquisition would put Morgan Est in a good position to take advantage of the move towards integrated outsourcing contracts.
Pipeline Constructors, which has 1000 staff, operates primarily in the water sector but also in the electricity and gas markets.
Utilities is an interesting sector and it is getting busier. There are likely to be more deals
John Morgan, executive chairman, Morgan Sindall
It had a turnover of £75m for the year to 30 September 2001 and a pre-tax profit of £332,690.
Morgan Sindall has bought a number of other engineering companies, including Miller Civil Engineering. However, Morgan rejected the claim – made by some city analysts – that the company had made too many acquisitions recently and needed time to integrate them.