Target Information

One Equity Partners (OEP) has entered into a definitive agreement to acquire Amey plc, a UK-based engineering consultancy and infrastructure services provider, from Ferrovial, S.A. Founded in 1921, Amey is recognized as a top-five contractor for the UK government and public sector, boasting a century-long expertise in engineering design, construction, maintenance, and project management of essential national infrastructure assets. The company focuses primarily on transport infrastructure and government buildings, offering services that encompass engineering and systems design, data science, digitalization, and a diverse range of technical contracting services. Employing approximately 11,000 individuals across 200 locations in the UK, Amey has established itself as a significant player in the industry.

Industry Overview in the UK

The UK infrastructure sector plays a critical role in the country’s economic development and sustainability efforts. With rising demands for modernized transportation networks and efficient public services, the sector is increasingly geared towards incorporating innovative technologies and sustainable practices. The UK government has committed to substantial investments in infrastructure as part of its long-term vision, which includes addressing climate change and enhancing public services.

Additionally, the UK’s focus on decarbonization and achieving Net Zero by 2050 presents significant opportunities for companies like Amey, which specializes in sustainable infrastructure solutions. This transition will not only create new projects but will also require an overhaul of existing infrastructure to meet rigorous environmental standards.

The regulatory landscape in the UK is supportive of infrastructure development, characterized by robust government initiatives aimed at encouraging private sector participation. The strategic collaborations between public and private entities foster an environment conducive to innovation and growth in engineering and infrastructure services.

Overall, the ongoing shifts in priorities regarding infrastructure service delivery, environmental sustainability, and technological advancement make the UK a promising market for growth in this sector.

The Rationale Behind the Deal

The acquisition of Amey by One Equity Partners is driven by a belief in the company's potential for growth as an independent entity. Ante Kusurin, a Principal at OEP, expressed enthusiasm for the opportunities that lie ahead for Amey, especially in light of the UK’s increasing emphasis on sustainable infrastructure development and its decarbonization agenda. By leveraging Amey's established reputation and capabilities, OEP aims to expand the company’s reach and service offerings.

This transaction also aligns with Ferrovial’s overarching goal of refining its business focus and enhancing shareholder value through the divestment of its Services business, representing a strategic milestone in its Horizon 24 business plan.

Investor Information

One Equity Partners (OEP) is a distinguished middle-market private equity firm concentrated on the industrial, healthcare, and technology sectors in North America and Europe. The firm, which spun out of JP Morgan in 2015, has built a reputation for executing transformational business combinations that create market leaders. OEP has a proven track record of initiating over 300 transactions globally since its inception, aided by a senior team with a wealth of expertise and a commitment to generating long-term value for its partners.

Partnering with Buckthorn Partners, LLP, a UK-based investment firm, in this transaction underscores OEP's strategy of collaborating with local experts to maximize the prospects of successful investments in the infrastructure domain.

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This investment by One Equity Partners in Amey is positioned as a potentially lucrative opportunity that capitalizes on the confluence of public sector demand for infrastructure services and the growing emphasis on sustainability in the UK. The robust governmental framework supporting infrastructure enhancements and the rising need for decarbonization efforts signal a bright future for Amey.

Given Amey's established reputation and the depth of its experience in managing critical national assets, OEP's decision to acquire the company seems well-grounded. The anticipated growth in infrastructure investment and the shift towards greener technologies will likely benefit Amey significantly.

Furthermore, the partnership with Buckthorn Partners facilitates localized expertise, which is crucial in navigating the UK's regulatory environment and effectively addressing market needs. This strategic cooperation can enhance operational efficiency and project delivery capabilities, fostering long-term growth.

Overall, this deal can be viewed as a promising investment that aligns with current market trends and government initiatives, positioning OEP and Amey to harness new opportunities in the evolving infrastructure landscape.

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