As part of the £1m acquisition, approximately 900 employees will join Galliford Try, including the senior management team of NMCN Water, who will report to Steve Slessor, managing director of Galliford Try’s Environment business.
In its last audited accounts, for the year to December 2019, the NMCN Water segment generated operating profit of £7.6m on turnover of £282.6m. The gross assets of the water segment were £70.0m as at 31st December 2019.
Work in hand includes a £100m water treatment plant at Frankley (in joint venture with Doosan Enpure) for Severn Trent Water and the new £60m Bellozanne sewage treatment works in Jersey
Galliford Try said that the acquisition was consistent with its strategy of targeting growth through its existing business, while seeking out acquisition opportunities in existing and adjacent sectors.
It also extends Galliford Try’s capabilities in the design and the mechanical, electrical, instrumentation, control and automation (MEICA) elements of the water business, the company said.
Galliford Try chief executive Bill Hocking said: “I am delighted to welcome the employees, clients and suppliers of NMCN Water to Galliford Try. This acquisition will accelerate the growth of our successful Environment business, providing work with new clients and increased capabilities. This is a very exciting time as we deliver our sustainable growth strategy and I look forward to a bright future for our collective team.”
In addition to the £1m purchase price, Galliford Try anticipates that it will have to fund certain contractual liabilities incurred prior to the completion date of the transaction which will be necessary to provide operational stability, it said.
The deal came just hours after Svella, the investment vehicle group all set to rescue NMCN before it went into administration this week, acquired the telecoms, plant hire, transport and accommodation business divisions of NMCN, securing more than 680 jobs.
The two acquisitions mean that the jobs of most of the 1,700 employees have already been safeguarded.
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