Interior design company Areen has bought a 60 per cent stake in transport and aviation specialists Pascall + Watson
The deal comes against a backdrop of falling profits at the central London-based architecture practice and just months after it replaced long-serving managing director Phil Holden with new chief Steve West (see AJ 30.03.15).
In February Pascall + Watson reported that profits had slumped from £958,753 in 2013 to just over £143,000 in 2014, blaming the cost of entering competitions and moving its headquarters across the capital for the drop.
However its global revenue has remained steady throughout the period, dipping only slightly from the £16.83million made in 2013 to £16.49million last year.
Following the share deal, which sees the west London-based Areen Design Services becoming a majority shareholding in the practice, Pascall+Watson insists that ‘both companies will continue to operate independently’.
The pair have already worked together on a number of projects and contest submissions, including the $7.2billion expansion of King Abdulaziz International Airport (KAIA) in Jeddah.
West, said: ‘Areen approached us because of our enviable reputation within our key market sectors and the collaborative methods we’ve developed to achieve such a noteworthy portfolio. We see this as a very positive step for both organisations and as a platform to pursue greater opportunity both in the UK and internationally.;
Trevor Cotterell, the managing director of Areen Design who will join the Pascall+Watson board, said: ‘For some time, we have felt that our clients, particularly within the transportation sector, might like the option of a more integrated approach to primary design and fit-out services.
‘For both of us, it’s the perfect fit and for our clients there is now more choice.’
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