The contribution of the business is expected to be earnings enhancing after phase-in and financing costs.
AEAT Consulting, which had a turnover of £42 million in the year to 31st March 2001, provides critical science and safety based services under long term contracts to customers including the Ministry of Defence, BNFL, British Energy and the UK Atomic Energy Authority. This acquisition provides a strong fit with, and positions Serco well to further grow, its science related activities which include the management of both the UK’s National Physical Laboratory (NPL), on behalf of the Department of Trade and Industry, and the Atomic Weapons Establishment (AWE), on behalf of the Ministry of Defence. It also offers synergy with Serco’s existing customer base.
Adrian Marks will be appointed Managing Director of the new Serco operating company. Adrian is currently a director of AWE plc and, prior to this, was a director at NPL. He has a strong background in both scientific and defence related services.
Completion is expected to be in the first half of AEA Technology plc’s financial year, once their shareholders have approved the transaction, and will be funded from within Serco’s existing bank facilities.
Kevin Beeston Serco’s Chief Executive said:
I am delighted to announce the acquisition of a business which adds outstanding science and safety management expertise and high quality customers to Serco. AEAT Consulting is a major player in the scientific and safety management business, not just in the nuclear industry but, increasingly, in other safety critical environments.
This acquisition provides an opportunity for mutual benefits between the scientists employed in this business and our current operations at AWE and NPL. This, in turn, strengthens the strong science and technology base that already exists within Serco, positioning us well for further support to both government and industry in these areas. I look forward to welcoming the staff members of AEAT Consulting to Serco and in their contributing to our success into the future.
