Amey Eyes International Expansion Through Strategic Acquisitions

Amey UK, now privately owned by One Equity Partners and Buckthorn Partners since late 2022, has signalled plans for international growth through selective acquisitions. This marks a strategic evolution for the company, which has sharpened its consulting and infrastructure services under new ownership.

Strategic Expansion Drive

• New focus: CEO Andy Milner recently stated that Amey is actively exploring acquisition opportunities outside the UK to strengthen its consulting capabilities abroad.

• Stable performance: Following the private equity takeover, Amey increased its contract win rate to 1-in-3, up from 1-in-14 previously, growing its order book 23% to £7.6 billion.

• Financial build‑up: The group generated £80 million net cash in 2023, following the completion of a £235 million refinancing agreement, part of which repaid £159 million owed to Ferrovial.

Growth through M&A

Amey’s acquisition strategy is centred on expanding its consulting and digital services footprint. Recent moves include:

• Acquisition of Citi Logik, a data-tracking firm, enhancing its analytical capacity in early 2023.

• Closing a £235 million syndicated facility, enabling financial flexibility to pursue future targets.

• International targets may include firms offering advisory services in energy transition, decarbonisation, transport analytics, and infrastructure consulting.

Risk Analysis

Integration Risks

• Acquiring firms in different jurisdictions poses integration challenges across culture, systems, and regulatory compliance.

Financial Exposure

• Leveraging debt-financing introduces financial risk if acquisitions don’t generate expected cash flows.

Market Positioning

• International consulting markets are saturated, requiring Amey to differentiate via expertise or niche services.

Impact Assessment

Economic

• Enables cross-border expansion and revenue diversification beyond UK budgets.

• Enhances consulting operations with an international client base, raising margin potential.

Operational

• Strengthened consulting and analytics functions will improve internal capabilities, particularly in digital and asset management.

Environmental & Policy

• Targeted growth in energy transition sectors supports Amey’s decarbonisation ambitions and aligns with its 2040 net-zero pathway.

Delivery Partners & Capabilities

Planned acquisitions are expected to align with Amey’s existing business lines:

• Consulting & Advisory: Likely acquisition targets within engineering advisory, digital analytics, and environmental consultancy.

• Transport Infrastructure: Opportunities to acquire local or regional consulting firms in major international markets.

• Complex Facilities: Potential additions in smart building or asset‑management services.

• Finance & Legal Advisors: Supporting transactions, due diligence, and cross‑border compliance throughout M&A processes.

Outlook

Under the stewardship of private equity owners, Amey is transitioning from a domestic services provider to a data-driven, globally competitive consultancy. If executed well, this expansion could:

• Significantly boost revenue beyond the £1.8 billion in 2023.

• Lead to healthier operating margins via high-value consulting work.

• Strengthen international credentials in areas like transport, energy transition, and smart infrastructure.

However, success depends on acquiring the right firms, integrating them effectively, and managing financial and operational risks carefully.