Swedish consultant Sweco has reached a conditional agreement with Grontmij to buy all the shares of the Dutch firm.
The deal will see the creation of a consultancy with 14,500 employees and an annual turnover of about US$1.9 billion.
The companies say that they have a near-perfect fit, geographically, operationally and culturally. Grontmij will add new major markets to Sweco, while Sweco will give Grontmij further access to the Nordic market. In Sweden, Grontmij will boost areas where Sweco aims to reinforce its position.
Sweco CEO Tomas Carlsson said: “Combining Sweco and Grontmij will create great value for all parties involved. Sweco has a solid track record of continuous operational improvements. In terms of growth, Sweco has consistently shown its ability to successfully grow through mergers. Now that our latest large acquisition, from 2013, has been very successfully integrated, we are ready to take the next step on the European market. Sweco and Grontmij are an ideal combination, since we share the same expertise and commitment to our customers. Together with Grontmij, we aim to become a recognised industry leader in Europe."
Grontmij CEO Michiel Jaski added: “Grontmij has made significant progress since 2012 with its ‘Back on Track’ strategy. We have successfully stabilised and refocused the company, and have now reached a strategic crossroad. Looking at the future of Grontmij and the trends in our industry, we are convinced that merging with Sweco is in the best interest of all our stakeholders.”