Arcadis has trumped Japanese consultant Nippon Koei’s bid for Hyder Consulting with an offer valuing the firm at £32m more than its first offer.
The board of Hyder has withdrawn its recommendation of the offer by Nippon Koei UK Topco of 680p per share in cash announced on 8 August.
Arcadis has acquired 6,085,162 Hyder shares at the increased offer price, representing in aggregate approximately 15.6 per cent of the existing issued ordinary share capital of Hyder on 20 August 2014.
Hyder shareholders will be entitled to receive 730p per share in cash and the deal values Hyder at around £288m.
Arcadis said the offer was a 50p per Hyder share increase on the Nippon Koei offer and represented a premium of approximately 55.6 per cent to the closing price per Hyder share of 469 pence on 30 July 2014.
Arcadis CEO Neil McArthur said: “The geographic coverage and capabilities of the two businesses are highly complementary.
“In the UK, Germany, Middle East and Asia, Hyder’s design and engineering services fully complement Arcadis’ design, consultancy and project management services, while Hyder’s presence in Australia creates a platform to provide the full range of [our] capabilities.”
He added: “A steering committee, jointly led by Ivor Catto, CEO of Hyder, and Stephan Ritter, executive board member of Arcadis, will create the detailed strategy and optimal operating model of the combined businesses in order to optimise the benefits of the combination.”
Hyder CEO Ivor Catto said: “The Hyder board and management team is delighted that Arcadis has made this increased offer of 730p per Hyder share. Arcadis’s increased offer represents compelling value for Hyder shareholders.
“The combined rich histories, shared values, strong strategic and cultural fit and the financial strength of the combined business make the two organisations natural partners.
“The board of Hyder welcomes Arcadis’ increased offer on behalf of Hyder’s shareholders, clients and people.”