Looking to expand its stake in the expanding U.S. and global water-resources market, Dutch engineering giant ARCADIS NV will acquire one of the sector’s few remaining midsize players, 114-year-old Malcolm Pirnie Inc. The White Plains, N.Y., engineer would become a wholly owned subsidiary of ARCADIS’ Denver-based U.S. arm, adding 1,700 employees and $392 million in 2008 revenue to its $2-billion-plus parent’s girth. ARCADIS, based in Arnhem, the Netherlands, said on June 25 it will finance the transaction with a combination of stock and $135 million in cash. The purchase price was not disclosed, but the deal is set to close
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.