Swedish engineer SWECO on June 1 said it seeks to buy Dutch-based peer Grontmij N.V. to create what it says would be Europe's "leading" design firm, with about $2 billion in total revenue and 14,500 employees.
SWECO's $387.4-million cash-and-stock offer would be a 22% premium over the May 29 stock close for the Dutch firm on the Euronext exchange, says Yuri Lynk, construction-sector analyst for Canaccord Genuity Corp., Montreal.
The firms say the deal would be "a near-perfect fit, geographically, operationally and culturally" and that there is strong shareholder support. The deal is set to close in the second half of 2015.
SWECO ranks at No. 34 on ENR's list of The Top 150 Global Design Firms, with $1.26 billion in global revenue; Grontmij ranks at No. 41 with $1 billion, based on 2013 revenue reports.
"The companies have strong fits in energy, buildings, infrastructure, Industrial and environment sectors, with complimentary competences such as light rail, architecture, and water," says Link.