Arcadis to acquire Callison in bid to increase Far East market share
Design and consultancy firm Arcadis, is to acquire Callison, an architectural and interior design consultancy with offices in the Middle East, United States, China, Europe and Mexico.
The acquisition is being financed with an undisclosed amount of cash, drawing upon a new five-year syndicated loan of $120mn plus cash available from existing funds and is desgned to strengthen the company’s presence in the Far East- especially China.
With projects in over 25 countries Callison has annual revenues of $167mn and more than 1,000 employees.
The purchase price is consistent with multiples paid by Arcadis on previous larger transactions and is based on a normalised EBITA of $25mn.
Arcadis will acquire Callison from its primary owner, Blue Point Capital, company management and principals.
Callison is a global leader in retail design and mixed-use developments, which account for more than 80% of its revenues.
The company provides comprehensive services for top retail brands, developers and corporate clients globally, including Nordstrom, Cole Haan, JC Penney, Zara, Williams-Sonoma, and IKEA.
Arcadis intends to leverage the activities of Callison with the existing capabilities of RTKL, which has performed strongly ever since being acquired in 2007, creating a global leader in high level design and architecture.
In the retail sector, Arcadis will be the leading design firm in the world and the leading player in mixed use/commercial developments in Asia.
In addition, it sees opportunities to better support clients globally by leveraging the wide range of capabilities, market reach and scale throughout the US, Asia, the Middle East, Europe and South America.
The closing of the transaction is subject to the satisfaction of customary closing conditions, including the receipt of approval from the Beijing Municipal Commission of Commerce and is expected to be completed in the third quarter of 2014.
Neil McArthur, CEO of Arcadis, said: “With the addition of Callison, Arcadis has created a true leadership position in high end design and architecture. We will have a clear leading position in retail globally, a strong leadership position in mixed use/commercial globally and will have a leading international design and architecture position in China.”
John Jastrem, chairman and CEO of Callison, added: “We are excited to be a member of the Arcadis team which has created value for the many other companies that have joined its ranks. Our combined global capability will benefit all our employees and clients.”