International engineering and project management company AMEC has announced that it has acquired environmental and engineering consultancy Entec Holdings Ltd for an initial cost of £61.2m.

AMEC purchased Entec from its owner-managers and investors, Growth Capital Partners, for the initial consideration of £61.2m. The acquisition has been made on a cash free/debt free basis and has been settled in cash. Further payments may be made, subject to retention and performance.

Entec holds a leading position in the water services and wastewater sector. It also provides renewable, nuclear and other energy services, industrial engineering, contaminated land and regeneration services, environmental planning and project management services. With headquarters in Newcastle and 14 offices across the UK, Entec is one of the UK's largest environmental and engineering consultancies employing over 700 staff and associates.

AMEC say the acquisition will strengthen AMEC's relationships with existing customers, as well providing access to new ones. The acquisition is described as being “fully aligned with AMEC's Vision 2015 strategy of assured growth; Entec broadens the Earth & Environmental division's geographic footprint in Europe and strengthens its capabilities in the water and energy sectors.”

The acquisition is expected to have an immediate and positive impact on earnings, and to meet its weighted average cost of capital in the first full year post acquisition.

Roger Jinks, President of AMEC's Earth & Environmental division, said;

"Acquiring Entec Holdings Ltd is another important step in our strategy of enhancing our water and environmental consulting capabilities internationally,"

Elaine Moore, Executive Vice President Europe and United Kingdom, AMEC Earth & Environmental, added:

"The addition of Entec's high quality people significantly enhances our position in the water sector around the world. The acquisition also supports AMEC's goal of strengthening the Earth & Environmental division's footprint in Europe."