Today, Skanska UK announces it has signed an agreement to purchase a highways operations and maintenance business from Atkins for £18 million, of which £2 million is to be deferred and paid subject to future performance.
The business comprises eight live contracts with six local authorities and the Highways Agency to deliver operations and maintenance for the road and motorway network.
The purchase is in line with Skanska's strategy to position itself as a significant player in the UK highways operations and maintenance market, building on the Asset Support Contract Area 2.
The business Skanska will acquire reported revenue of £80.0 million and an operating profit of £1.3 million in the six months to 30 September 2012. It has a workforce of 1,200 people.
Commenting on the acquisition, Skanska UK’s President and CEO, Mike Putnam, said: “We look forward to welcoming this skilled and experienced team into the Skanska family. This represents a significant, strategic development for our UK business. It demonstrates our strength and confidence in the UK market, on the back of four years of robust performance by our UK operations.”
Executive Vice President Bill Hocking said: “Our new clients are set to benefit from Skanska’s global highways maintenance experience, as well as our commitment to responsible project delivery with minimal impact on the environment. We look forward to working with our clients to safely achieve their goals and efficiency aspirations. This acquisition positions us well for further growth in this market.”
Skanska assumes ownership on 1 June 2013.
Notes to editors
The acquisition is in line with Skanska’s strategy
The acquisition is designed to strengthen Skanska’s credentials in highways maintenance. It is in line with the company’s strategy to position itself as a significant player in this market, building on its first highways maintenance framework win with the Highways Agency in 2012, in joint venture with Atkins: the Asset Support Contract Area 2.
One of Skanska’s five strategic growth areas is regional presence. We understand the benefits of having a local base in areas where we do business. It helps us to understand the needs and drivers of local authorities and communities, so that we can help them meet their aspirations.
Asset Support Contract Area 2
The Asset Support Contract Area 2 is a five-year contract with the Highways Agency and covers design and maintenance of motorways and major A roads in the south-west of England. Skanska is in joint venture with Atkins on this contract. Asset support contracts replaced the managing agent contractor model, with the aim of delivering substantial maintenance savings. Skanska and Atkins are also working together on the delivery of the improvement schemes on the M25.
Experience of delivering roads projects for local authorities
Skanska UK has solid experience of delivering roads projects for local authorities.
In Weymouth, for example, the team constructed a £60 million relief road for Dorset County Council, while in Scarborough we have delivered a £29 million road improvement scheme and park-and-ride facilities for North Yorkshire County Council. In Surrey, Croydon and Lewisham, Skanska is delivering street lighting PFI services.
In London, we delivered the South Central Maintenance Contract for Transport for London (£25 million pa). We have also delivered highway maintenance services to Haringey, Hackney, Hounslow, Ealing and the City of London.