Hyder accepts $450mn Nippon Koei bid
Japanese consultancy trumps earlier offer from Arcadis
Arcadis's bid to take over engineering consultancy Hyder has been trumped by a higher offer from Japanese firm Nippon Koei.
Netherlands-based Arcadis, which also owns the EC Harris building consultancy had launched a $433.3mn bid for Hyder on June 31, stating that there was "compelling strategic rationale" for the deal. The bid was accepted by Hyder's board.
However, this morning (8 August) Hyder announced that a Nippon Koei had made a $450.5mn counter offer - all of which would be paid in cash.
Nippon Koei is a Japanese engineering consultancy which has annual revenues of $708mn and earnings of around $57mn. The firm said that acquiring Hyder would allow it to become a "top tier global engineering consultancy".
Its president, Noriaki Hirose, said: "This merger represents a truly transformational step for Nippon Koei, fulfilling founder Yutaka Kubota's long term strategic vision of broadening the client base and geographic footprint of Nippon Koei, whilst continuing to focus on our core sectors of transportation, utilities and property.
"I regret that the confidential nature of our interest has meant that we have not yet had the opportunity to meet many of the employees of Hyder and begin planning our combined journey together."
He added that it planned to make "minimal" changes to either firm's existing structure.
Meanwhile, Arcadis said that it "is considering its position and will make an announcement in due course".
Hyder has a strong Midlle East presence, with a 110-year history in the region. It has built projects such as the Burj Khalifa and Emirates Towers, and is currently working on scores of Qatar infrastructure projects.
In the year to March 31, the company had revenues of just over $500mn - $147.8mn of which was generated in the Middle East.