Harrie Noy, chief executive of Dutch consultant Arcadis, dismissed claims that the takeover of EC Harris, the UK’s largest QS, is part of the ‘McDonaldisation’ of the industry, Construction News reported.
Noy was speaking after the takeover of EC Harris by Arcadis was announced, which follows the takeovers of Davis Langdon and Faber Maunsell. The deal, which creates a 19,000-strong professional services firm with offices in 28 countries, will mean the end of one of the biggest names in UK consultancy.
Analysts value the deal at £125m. The agreement will see Arcadis issue 3 million shares, worth about £35m, and pay an undisclosed cash sum. Arcadis will also take on EC Harris’ £24m pension liability, Building reported.
Noy hit out at critics, claiming it was “a little bit childish” to compare the globalisation of construction consultancies with ‘McDonaldisation’.
Instead he described the deal as a perfect fit. “With EC Harris we get a leading position in project management and related services while their built asset consultancy approach perfectly fits our goal of expanding our services at the high end of the value chain,” he said.
EC Harris chief executive Philip Youell said the deal was “an exceptional fit”. “This is a unique deal that will accelerate our vision and plans for growth and will enable us to deliver our clients’ goals as well as our own,” he said.
As Arcadis is a relatively small player in the UK, EC Harris will lead a combined UK firm with the integration of 635-strong Arcadis UK staff with the 2,300 UK staff at EC Harris taking place over the next year.
Under the terms of the deal EC Harris will keep its status as a limited liability partnership with its own board. Philip Youell and one other EC Harris partner will sit on the Arcadis board and senior management committee.
Partners will receive a cash sum, and a proportion of Arcadis shares, which they will not be able to convert until a year after the deal, giving them an incentive to stay. The firm is keen to avoid the leakage of senior staff that occurred at Davis Langdon following its takeover by Aecom.
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