Hyder Consulting accepts buyout bid from Arcadis
Dutch firm offers 650p per share, valuing UK-based company at $430.5mn
The board of design and engineering firm Hyder Consulting has accepted a buyout offer from Dutch engineering group Arcadis.
With Arcadis prepared to pay 650p ($10.93) per share for Hyder, the deal will see the UK-based firm valued at around £256m ($430.5mn).
The 650p price represents a 39% premium on Hyder’s closing price of 469p per share on Wednesday 30 July, and shares in the company rose 37p to 642p in early trade Thursday, putting it in the top five risers on the London main market.
Hyder has a strong presence in the Middle East, having operated in the region for more than 110 years. The firm has worked on flagship projects such as Burj Khalifa and Emirates Towers, and it is currently working on scores of Qatar infrastructure projects as well as a joint venture with Jeddah Municipality to train engineers and help deliver public works packages.
In the year to 31 March, the company had revenues of just over $500mn – $147.8mn of which was generated in the Middle East. Its pre-tax profits were $9.1mn.
Ivor Catto, chief executive of Hyder, told London-based The Daily Telegraph: “The 39p premium to the previous closing price reflects the quality of the company and this is a good deal for investors which the board has recommended be accepted.”
Neil McArthur, chief executive of Arcadis, said he believed the premium being paid as “a good deal for Hyder shareholders” and that he was pleased to add “a unique company” company to the group.
Broker Liberum, said: “This is most likely a knock out bid. With the deal likely to go ahead with only a small prospect of a higher rival bid. We believe the price is good.”