ARCADIS, the international consultancy, design, engineering and management Services Company, Tuesday announced that it is expanding its position in Brazil by purchasing the remaining shares in ARCADIS Logos in which the company already holds 50% plus 1 share.

An agreement has been signed to acquire the remaining shares held by Logos Holding, a partnership of 24 partners of whom 13 are still active in the business. The agreement concerns the project management, consultancy, engineering and environmental activities of ARCADIS Logos which are core business to ARCADIS.

ARCADIS CEO Harrie Noy reiterated his delight at being able to further expand in the rapidly growing Brazilian market through a company that is well respected for their quality and dedication to clients and growth.

The energy producing assets of ARCADIS Logos, consisting of Biogas installations and small hydropower plants, are not part of the deal. These assets are currently being sold and income from (the sale of) these assets will be distributed according to the current joint shareholding.  

ARCADIS entered the Brazilian market in 1999 by acquiring 50% plus 1 share in Logos Ltda, a leading project management consulting company in Brazil, which was later renamed ARCADIS Logos. The company has developed very successfully, from about 200 people in 1999 to more than 2100 people today, partly through small acquisitions, adding engineering and environmental capabilities.

Gross revenues of the business in which ARCADIS will have a 100% ownership is expected to be over €150 million in 2011, with margins well above the ARCADIS average. Backlog is very strong and provides a solid basis for continued strong growth in the Brazilian market which is expected to benefit from large investments related to modernization of infrastructure and the 2016 Olympic Games in Rio de Janeiro.

In addition to a cash payment, the transaction will be partly financed by issuing 1.16 million ARCADIS NV shares to the Logos Holding partners. These shares will have a lock up period of 6 months with incentives for the active partners to hold them for at least 18 months after closing.

As ARCADIS Logos is already fully consolidated in the ARCADIS accounts, the transaction will not impact revenues and EBITA, but it will have a positive effect on net income from operations.

The transaction is expected to close in July 2011 and will be immediately accretive to earnings per share (based on net income from operations which excludes amortization). Further financial details were not disclosed.

18th May 2011