BDP’s Manchester office
The UK’s second largest practice BDP has been sold to a Japanese company for £102 milllion
Nippon Koei, a huge technical and civil engineering consultancy with an annual turnover of £430 million, has agreed a cash purchase for the Manchester-headquartered big hitter.
BDP Holdings, which employs more than 950 people and has a turnover of £81million, will become a wholly-owned subsidiary of Nippon Koei - a move which was ’unanimously’ supported by the board of directors at the 55-year-old practice.
Nippon Koei will acquire 100 percent of the shares of BDP ’by paying the share price to the existing shareholders’.
The deal was announced today in a notification to the Tokyo Stock Exchange posted online explaining the details of the sale and the benefits for both Nippon Koei and BDP.
The document says the acquisition will, among other things, see Nippon Koei take advantage of BDP’s significant BIM knowledge and allow the UK practice to expand its business into Japan.
Last year BDP posted significantly improved trading figures with its 2014 accounts describing its year as the ‘turning point’ after a ‘particularly challenging period’
The company made a £2.1 million profit in the 12 months to the end of December 2014, a 125 per cent increase on a ‘comparable period’ during the previous 18 months.
Its staff roll swelled by 100 to 832 over the same period, according to the financial accounts which have this year switched from recording financial performance over an 18-month period to the more conventional calendar year.
The firm’s improved performance allowed a £1.75 million dividend payment to its shareholders during 2014. Shareholders received no dividend payments in 2013.
At the time BDP chief executive John McManus added that the ‘particularly challenging’ years leading up to 2014 had led to a focus on ’re-establishing stability and a sustainable level of turnover in a highly competitive market’.
Comment on the acquisition
John McManus, chief executive of BDP
’The alliance with Nippon Koei heralds an exciting new era in BDP’s evolution. Although separated geographically, our two firms share common values and have highly complementary strengths in terms of professional offer and sector expertise. By uniting the two firms, we are creating an organisation which genuinely has the potential to be greater than the sum of its parts.
’This strategic international alignment will deliver huge benefits to our clients and will offer exceptional prospects for our people to develop both professionally and personally.’