- Arcadis ( OTC:ARCAY ) to acquire Ireland-based DPS Group, a leading consultancy, engineering and construction management company for Life Sciences and Semiconductor facilities.
- The move will enable Arcadis to achieve a leading global position in the two high growth manufacturing markets and create a further enhanced and integrated full-service offering.
- The deal to accelerate Arcadis’ 2021-2023 ‘Maximizing Impact’ strategy and strongly positions Arcadis in the high growth and resilient Life Sciences and Semiconductor manufacturing sectors.
- The addition creates a full-service advisor for high-tech industrial manufacturing clients, combining DPS’ and Arcadis’ complementary service offerings.
- Opportunity to leverage DPS’ strong capabilities, experience and long-standing client relationships with the world’s largest pharmaceutical and semiconductor manufacturing companies
- Increased size drives scaling opportunities and cost synergies from improved operational efficiencies and rationalization of organizational design
- The Arcadis-DPS combination will provide clients with a one-stop shop, full-service provider.
- The acquisition of DPS for a cash consideration of €232 million or an enterprise value of around €295m represents 8.1x DPS’ estimated 2022 EBITDA, or 6.7x post synergies.
- The transaction will be fully debt financed.
- Pro forma for the transaction Arcadis expects to be around the upper end of its targeted financial leverage range of 1.5x – 2.5x net debt / EBITDA, by the end of 2022, and to de-lever in 2023 given its solid cash conversion track record and strong order book.
- The deal to close before the end of 2022.
For further details see:
Arcadis to acquire Ireland-based DPS Group