ARNHEM, THE NETHERLANDS – January 31, 2008 -- ARCADIS (EURONEXT: ARCAD), the international consultancy, design and engineering company, announced today that it has acquired 100% of the shares of LFR, Inc., a U.S.-based environmental services company with 2007 gross revenues of $127 million (net revenues $63 million) and margins close to ARCADIS' target for environment. As a nationally recognized environmental management and consulting firm, headquartered in the San Francisco Bay area of California, LFR, Inc. employs over 480 staff in 34 offices nationwide, serving private sector commercial, industrial and institutional clients across the country. ARCADIS acquired LFR, Inc. from a private investment group. It is expected that the acquisition will be immediately accretive to earnings per share. No further financial details were disclosed.
LFR, Inc. has been in continuous operation since 1963 and is one of a few remaining premier independent environmental consulting firms in North America. LFR, Inc. provides a broad range of environmental and related services including fixed-price remediation (Guaranteed Site Solutions™), environmental audits and due diligence, specialized geotechnical engineering, risk assessment and litigation support/expert witness services, environmental compliance, air quality and hazardous material abatement services. Over the past five years the company has produced double digit revenue growth.
"This acquisition strengthens ARCADIS' position as a global leader in environmental services. With 37% of revenues, environment is now the largest market segment for ARCADIS, allowing us to continue strong growth, driven by such important issues as sustainability and climate change," says Harrie Noy, CEO of ARCADIS. "Through this acquisition we establish a more substantial presence in California, a premier environmental market where we can expect additional growth with our combined capabilities," adds Steve Blake, CEO of ARCADIS US operations. "Similarly to Blasland, Bouck and Lee, which we acquired in 2005, we will benefit from cross selling services to our mutual clients both nationally and internationally, and from operational synergies over time."
LFR, Inc. CEO Frank Lorincz commented: "We believe that by joining ARCADIS we will provide excellent professional development opportunities for our staff. We also will immediately strengthen our own market position, as we are able to support our clients internationally through the ARCADIS network. Additionally, we will be able to leverage the significant capabilities in infrastructure engineering, program management and expanded environmental technologies that ARCADIS is known for in the industry, to better serve our expanding client base. In return, ARCADIS will be able to benefit from our geographic coverage and depth of services to assist their clients better."
ARCADIS is an international company providing consultancy, design and engineering and management services in infrastructure, environment and facilities, to enhance mobility, sustainability and quality of life. ARCADIS develops, designs, implements, maintains and operates projects for companies and governments. With more than 12,000 employees and $2 billion in gross revenue, the company has an extensive international network that is supported by strong local market positions.
