| | In a deal valued at
£50m, consulting and
business services
provider Mouchel has
strengthened its
position in the
public-sector market
through the acquisition
of Hedra, a consultancy,
solutions and services
business that provides
advice and
implementation support
to clients in the UK
public sector.
The acquisition more
than doubles the size of
Mouchel’s management
consultancy business. It
represents the largest
single transaction for
the group since the
merger of Mouchel and
Parkman in 2003 and
marks a decisive step in
its transition from an
engineering-focused
consultancy to a
multi-disciplinary
consulting and business
services group.
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Mouchel operates
predominantly in the
public and regulated
sectors, working with
central and local
government, utility
companies, and transport
operators on
infrastructure projects.
The group has more than
11,000 employees and a
turnover of £450m.
Hedra is one of the
UK’s largest independent
management
consultancies. Its
clients are
predominantly in central
and local government,
but also in those
industries regulated by
government and a wide
range of public service
agencies.
A privately owned
business, it has more
than 200 employees,
together with more than
400 active associates
throughout the UK. In
the financial year ended | |
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| | 31 December 2007 Hedra
generated profits before
tax of £4m on gross
revenues of £47.5m.
Mouchel’s management
consultancy business was
expanded through the
acquisition of Hornagold
and Hills in November
2006 and currently
employs around 250
staff. The new business
will therefore employ
nearly 500 staff. It
will be led by Hedra
chief executive Mark
Campbell, who will join
Mouchel’s Group
Management Board. Lynton
Barker, chairman of
Hedra, will also be
joining Mouchel in a
strategic role.
Richard Cuthbert,
Mouchel chief executive,
commented: “The
acquisition gives scale
and breadth to Mouchel’s
position in the public
sector and complements
the acquisition of HBS | |
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| | last August. By merging
Hedra with our existing
management consultancy
and project management
practice, we move
directly into the
premier league in this
area and strengthen our
in-house capacity to
deliver and transform
single and multi-service
outsourced contracts.”
Campbell added: “We
are very excited to
become a part of Mouchel
at this exciting stage
in its growth. The fit
between our two
businesses is excellent
in terms of market focus
and commitment to
excellence in client
delivery. There is also
a strong cultural
alignment. The
combination of Mouchel
and Hedra will create an
organisation that can
contribute significantly
to the continuing
transformation of public | |
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| | services organisations
in the UK.”
The major part of the
acquisition price
(83.4%) will be settled
in cash and the
remainder in new Mouchel
shares.
Mouchel expects that
the combined effect of
this acquisition will
enhance earnings per
share (before
exceptional costs,
including amortisation
of intangible assets
arising from business
combinations) in the
first year of ownership.
The group is forecasting
that the combined
business will deliver
annualised cost savings
of at least £1m.
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