Workers at engineering consultancy Halcrow who own shares in the business could receive cash windfalls worth thousands of pounds after its directors agreed to a £124m takeover.
Halcrow, which has a base at Temple Quay, Bristol, is being acquired by major US group CH2M Hill. The deal is subject to the approval of its shareholders and the High Court, but is expected to be completed by November.
Halcrow was founded in 1868 and specialises in major transport, environmental and other infrastructure projects across the globe.
It has worked on many of the world’s largest construction projects from the Channel Tunnel rail link to London’s Crossrail, to airports, sea ports and motorways in North America, China and the Middle East.
It employs 6,000 people in nearly 100 offices globally. As well as its Bristol office it has a long-standing Swindon base, which with 500 staff iis the largest of its 20 regional offices and around the same size as its London HQ.
Originally a partnership, since 1990 the business has been majority owned by the Halcrow Trust, a fund set up by its former partners.
Of the 20.7m shares in the company, the trust owns around 74% with the balance held by more than 1,100 employees.
Once the takeover has been approved these staff will be able to sell their shares for cash or new shares in the enlarged business, potentially earning them thousands of pounds.
Staff were told of the acquisition earlier today through a video broadcast to all offices. Each then received an explanatory email and could find out more information on a dedicated intranet site.
In line with major engineering consultancies worldwide, Halcrow has been hit by a combination of the economic slowdown and increased rivalry in its major markets.
As a result, last year’s £8.8m pre-tax profits were almost half of the previous year with sales slipping by nearly 8% to £468m and the firm was forced to make 500 staff redundant.
Chief executive Peter Gammie admitted that Halcrow had approached Denver, Colorado-based, CH2M Hill as the two businesses have worked together for many years on projects.
“The consolidation, which reflects an increasing trend in our industry, will create a very significant value proposition for clients. We are very complementary in terms of our skills and our markets so, where we share geographies, we are reinforcing one another rather than duplicating,” he said.
CH2M Hill chairman and chief executive, Lee McIntire added: “This acquisition is a game changer for our clients.
“Our global footprint will be deeper and our bench strength will be even more robust. By combining our resources and leveraging our collective technical know-how, we will set a new standard for the marketplace. Best of all, our two firms are ideally suited in terms of cultures, markets, geographies, and we have a shared long-term vision for the future.”
A Halcrow spokesman said it was “business as usual” at its offices and staff would continue to be updated as the deal progressed.
