Driver Group plc Acquisition of Trett Consulting
Driver Group, the global construction consultancy, is pleased to announce the acquisition of Trett Consulting ("Trett"), a leading dispute resolution and contractual advice consultancy business from Grontmij N.V. The total consideration for the acquisition is £3.0m and is being satisfied out of the Company's existing financial resources.
The acquisition strengthens Driver Group's core capabilities and is an excellent strategic fit for the Company. Trett has a strong reputation for the provision of worldwide support in dispute management and resolution as well as assisting clients in risk assessment and avoidance of disputes. The acquisition enhances Driver Group's offering by not only bringing to the Company an experienced and high quality team of individuals that complement the Company's existing skill sets and expertise but also by providing Driver Group with access to a wide range of end markets (including marine and shipbuilding, petrochemicals and nuclear engineering) and greater geographical penetration. As well as increased presence in the UK, Trett provides the Company with greater presence in the Middle East and allows Driver Group to expand into Europe (through Trett's office in Holland), the North American market (through Trett's office in Houston, Texas) and the rapidly expanding South East Asian market (through offices in Malaysia and Singapore). Staff levels in Driver Group will now increase by 75 persons to c. 230.
In the year ended 31 December 2011 Trett achieved turnover of approximately £14.0m, and adjusted EBITDA (before group charges) of approximately £0.1m. As at 30 April 2012, the agreed value of the assets being acquired were £ 2.3m including net cash of £0.65m. Given the complementary nature of the two businesses the acquisition provides Driver Group with synergistic benefits and is expected to be earnings enhancing for the Company in the first full financial year.
The acquisition fits perfectly with Driver Group's stated strategy of controlled expansion that is both profitable and cash generative. Trett has established a strong brand within the global industrial consultancy industry which the Board is certain will enhance the Driver Group offering further.
Dave Webster, Chief Executive Officer of Driver Group said; "This acquisition provides a global platform for the full service offering of the Group plus opportunities to leverage our Project Services business - that Trett does not currently provide, across a world market and a broader sector and client base. The combined strength of two of the strongest brands in the dispute and advisory market will ensure both Trett and Driver clients receive unparalleled expertise and advice. As our businesses and culture are very similar the integration process should be reasonably straight forward and I am looking forward to working with Trett's people in what for them is a return to an environment in which they belong."
John Chubb, Managing Director of Grontmij in the UK and Ireland said; "Following the release of our 'Back on Track' strategy early this year, the disposal of Trett is an early move in the restructuring workstream as we focus on our core markets and core capabilities. I believe that the acquisition of Trett by Driver is an excellent fit which represents good value to both companies".