Netherlands-headquartered consultancy Arcadis has announced that it has agreed a cash offer through which its subsidiary Arcadis UK Investments B.V. will acquire the entire issued and to be issued ordinary share capital of Hyder Consulting in a deal which values the firm at £256.2 million.
The offer made by the global natural and built asset design and consultancy firm represents a premium of approximately 38.5 per cent. to the Closing Price per Hyder Share of 469 pence on 30
The statement said that Arcadis Directors believe there is a “compelling strategic rationale for the combination of Hyder and Arcadis, including:
- the acquisition of Hyder is a natural step in the evolution of Arcadis as the world’s leading global design and consultancy firm;
- the addition of Hyder’s leading design and engineering capabilities strengthens Arcadis’ integrated service offering in specific market sectors (infrastructure, buildings, water, natural resources) and geographies;
- the Enlarged Group will have a wider customer base, which the Arcadis Directors believe will benefit from Arcadis’ greater scope and increased scale, bringing them new services and expertise;
- Arcadis and Hyder operate in highly complementary geographies, strengthening Arcadis’ positions across key geographies, and establishing a footprint in new target markets sooner than previously anticipated;
- the Enlarged Group will be able to achieve significant revenue and cost synergies including savings through the use of global design excellence centres.
Arcadis, which is publicly listed on the NYSE Euronext Amsterdam with a market capitalisation of approximately €1.74 billion as at 30 July 2014, has approximately 22,000 employees and operates globally with a presence in North America, Emerging Markets, Continental Europe and the United Kingdom.
Headquartered in the UK, Hyder is one of the world’s longest established engineering consultancies and operates in Asia, Australia, the Middle East, Germany and the United Kingdom, employing approximately 4,500.
Commenting on the Offer, Neil McArthur, Chief Executive Officer of Arcadis said:
“Hyder is a unique company with a long history of being involved in the leading edge of design and engineering. Through the transaction we see an excellent opportunity to better serve our clients by further deepening our capabilities in global design and engineering in growth markets whilst creating exciting career opportunities afforded by a stronger global growth platform for staff in both companies. The transaction will create value for ARCADIS shareholders by accelerating our sustainable growth strategy and through the synergy opportunities that arise from the combination.”
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