ARCADIS announced today that it has acquired 100% of FC International SA (FCI), a French-based infrastructure and environmental engineering services company. With a staff of 800 and EUR 60 million in revenues, the acquisition of FCI positions ARCADIS as one of the top 5 private engineering firms in the French market.
On gross revenues of EUR 60 million, FCI earned an EBIT of EUR 2.7 million in 2001. ARCADIS paid EUR 12 million in cash to acquire FCI of which approximately EUR 4.5 million will be booked as goodwill. FCI will be consolidated into ARCADIS financials as of July 1, 2002 and is expected to be accretive to overall earnings as of that date.
Some 70% of FCI’s total revenues are generated in France, where the company operates under the brand names 'EEG Simecsol' in the infrastructure sector and 'Gester' in the environmental sector. The Czech Republic is also an important market for the company, with 8% of revenues, generated under the brand name 'Geotechnika'. The remaining 22% of sales comes from projects in the Middle East and Far East, under the brand name 'Renardet'.
FCI’s business mix fits well with ARCADIS, as some 80% of the firm’s business consists of infrastructure work, while the remaining 20% involves environmental projects. FCI has a strong position in the French market for road and rail infrastructure. The specialist capabilities of FCI in the area of tunneling and bridge design are a welcome addition to ARCADIS’ knowledge base. It is expected that the French market for infrastructure will develop favorably in the coming years with many investments in city bypasses, road upgrades, metro tunnels and Cross-Alpine tunnels for high speed trains, as well as extra safety tubes for existing road tunnels.
The company’s position in the environmental market provides a platform for future growth in this rapidly expanding market in France, utilizing ARCADIS’ environmental technologies. ARCADIS also expects synergy with its multinational client network through the additional services it can now provide to industrial clients, both in and outside France.
Harrie Noy, Chairman of the Executive Board of ARCADIS commented: 'This acquisition fulfills a major step in our strategy to build home market positions in key European markets. We are very excited about the opportunities that FCI provides to ARCADIS to further grow activities in the areas of infrastructure and environmental services, which have been consistently strong for us in recent years.'
(source: Arcadis)
