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Enterprise bid targets savings

Lancaster House the Enterprise PLC head office on Centurion Way in Leyland

Lancaster House the Enterprise PLC head office on Centurion Way in Leyland

 

The Spanish contracting giant bidding to take over Lancashire support services firm Enterprise has said it wants to make £40m of cuts.

Ferrovial Services, which also owns Heathrow Airport, said it believed it could bring “cost and revenue synergies” by merging its acquisition with its UK business, Amey.

It announced it was progressing with a £385m takeover which would see it create a £2.3bn company employing more than 21,000 people.

The savings would come from both cost and revenue budgets and therefore may not mean all the savings would mean to come from cuts at Enterprise’s head office in Farington, Leyland.

Santiago Olivares, chief executive of Ferrovial Services, said: “The acquisition of Enterprise will create value through synergies derived from integrating it into Amey.

“The deal strengthens us in markets with growth potential.

“In terms of client types, range of services and geographical footprint, the two companies are highly complementary and offer great potential to share resources.

“The newly combined company will have the capability to offer our clients added value integrated services in an efficient way.”

Ferrovial has appointed Mel Ewell, chief executive of Amey, to run the newly-combined company once the acquisition has got the green light from European regulators.

The deaal includes all parts of Enterprise except for its joint venture with support services group, Mouchel, called EnterpriseMouchel.

Last week, members of the company’s 600-strong workforce voiced fears at the impact of the merger on its headquarters in Lancashire.

Enterprise chief executive Ian Fraser said the deal offered an “exciting future” for the firm.

 

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