Expect M&A speculation to increase on WorleyParsons, Cardno and Ausenco as global E&C consolidation continues with Brinckerhoff sale. WSP Global has announced...

Morgans Financial Limited

Morgans Financial Limited

Expect M&A speculation to increase on WorleyParsons, Cardno and Ausenco as global E&C consolidation continues with Brinckerhoff sale. WSP Global has announced that it has entered into an agreement with Balfour Beatty to acquire Parsons Brinckerhoff, Consulting division of Balfour Beatty, for US$1.2425bn. Reports suggest that this reflects a circa 11x trailing CY13 EBITDA multiple or a 7.5x CY14 EBITDA (including synergy's). This continues the sector consolidation trend prevalent over the last 18 months and follows the recent increased GBP288m bid by Arcadis for Hyder (12.6x 2014 EBITDA) and AECOM's GBP2.3bn acquisition of rival URS in July (7x proforma 2015 EBITDA, including synergy's). Senior Analyst Roger Leaning explains implications to Cardno, WorleyParsons, Ausenco and other global players: (VIEW LINK)


Morgans Financial Limited
Stockbroker
Morgans Financial Limited

Morgans is Australia's largest national full-service retail stockbroking and wealth management network with over 240,000 client accounts, 500 authorised representatives and 950 employees operating from offices in all states and territories.

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