Skanska acquires McNicholas Plc - “Brown Macs”

Press release 08/12/2006 00:00 CET

Skanska UK has today completed the acquisition of McNicholas Plc “Brown Macs”, the UK’s leading street works contractor. The purchase price amounts to approximately £50 million.

David Fison, Chief Executive, Skanska UK: “The acquisition of McNicholas Plc is part of our strategy to grow and develop our UK utilities and infrastructure services business. We know McNicholas Plc well and have developed an excellent working relationship through our successful joint venture undertaking the gas distribution mains replacement programme for National Grid in the North London Area.

“The company is a long established contractor with a strong position in highways maintenance, power, gas, water and rail projects in London and the South East and I am delighted they are now part of the Skanska family.”

McNicholas Plc, whose revenue amounted £150 million in 2005, will be merged with Skanska UK’s existing Utilities Operating Unit. Headed up by Stewart Keeble, the combined business will deliver annual revenue of over £300 million, making Skanska one of the largest utilities and infrastructure services providers in the UK.

Commenting on today’s announcement, Michael Doherty, who as Managing Director of McNicholas Plc has grown and developed the business over the last decade and who remains with Skanska as non-executive director said: “The integration of our businesses is very positive for both customers and employees. The coming together of Skanska and McNicholas will allow us to accelerate our strategic plans, to broaden our solutions and build a service-offering which very few competitors will be able to match.”