There has been a spate of company takeovers in recent times and this month’s magazine covers another two deals (pages 7 and 9).

Both are interesting developments.

The Vital Services Group, better known as a supplier of labour to the industry through its Vital Resources arm, has stepped in to the big, bad world of contracting by snapping up MJN Colston and EI-WHS from Staveley Industries. It remains to be seen whether the cut and thrust of construction offers them better margins than the agency labour market.

The second deal sees Nottingham-based Goodmarriott and Hursthouse become part of Dutch group Imtech. This is Imtech’s second foray into the UK, following 2003’s purchase of Meica (page 19).

Goodmarriott and Hursthouse boss Trevor Hursthouse foresees contracting becoming a European market as firms look to even out peaks and troughs in individual countries by broadening their operations.

Expect more excursions across the water as European firms look to gain a foothold in the UK. Imtech, for example, aims to be a top three player in the UK m&e contracting sector within the next five years. I suspect that Imtech is not the only one eyeing up the opportunities.

Source

Electrical and Mechanical Contractor