Management Buyout / Non-Core Acquisition
Amco Group was a Special Purpose Vehicle formed to support the MBO of three businesses headquartered in Barnsley, primarily focused on specialist engineering and civils projects both in the UK and abroad. The businesses were acquired from Yorkshire construction and engineering contractor Amco Corporation plc (now Billington Holdings plc) after they were considered non-core. The acquisition package put forward by Endless provided an all-encompassing solution to the vendor, which wanted to concentrate on its core operations, and facilitated a complex buyout of the group’s non-core subsidiaries. The buyout was led by David Jackson (CEO) and Ian Swire (FD) and included the following distinct business units:
- Amalgamated Construction – a multi-disciplinary specialist engineering company operating in the rail, energy and engineering sectors serving a growing blue chip client base across both public and private sectors
- Amco Drilling – provider of exploratory boring services across West Africa
- Amco Developments – property development company
Amco Group grew its turnover to c£100 million and its operating profits three-fold to more than £10 million during the period of Endless ownership.
Despite the general downturn in construction activity from 2008, Amalgamated continued to see a strong demand for its specialist engineering services. In 2009 Amalgamated was awarded over £95m of new work, 90% of which came from existing clients and included over £60m of work under framework agreements. By the start of 2010 Amalgamated's order book stood at over £170 million with its tenders at record levels as a consequence of its focus on long term growth sector underpinned by regulatory expenditure.
In February 2011, Amalgamated Construction was sold to Renew Holdings plc for £19.8 million plus £6.2 million deferred. Renew identified Amalgamated Construction as a strategic acquisition, to expand its presence in the specialist engineering sector and open new markets, and this has been a highly successful and transformational acquisition for Renew. Shortly thereafter Endless sold its stake in the remaining business to management in a £14 million deal.