GISI Doubles Asian Presence With Two Strategic Acquisitions

Rhea-AI Summary

Global Infrastructure Solutions Inc. (GISI) announced the acquisition of Arcadis’s Hong Kong and Singapore businesses, significantly enhancing its operational scale in Asia by adding 500 employees. This all-cash transaction aligns with GISI’s strategic aim to diversify globally. The purchase bolsters GISI’s positioning in the infrastructure and building markets, driven by strong demand. Additionally, these acquisitions mark GISI's fifth strategic transaction in 2022 and are expected to positively impact the company's service offerings and client relationships.

Positive

• Enhances GISI's operational scale in Asia by adding approximately 500 employees.
• Strengthens GISI's position in infrastructure and building markets with increased demand.
• Supports GISI's strategic goal of global diversification and doubles its size in Asia.
• Will have immediate positive impact on GISI's presence in Hong Kong and Singapore markets.
• Complements the previously announced merger with Hill International, representing five strategic transactions in 2022.

Negative

• None.

• The acquisitions advance GISI’s strategic objective of global diversification and double its size in Asia
• The purchases of Arcadis’s Singapore consulting and Hong Kong design and engineering businesses strengthen GISI’s position in infrastructure and building markets with strong demand and growth prospects
• Assuming the closing of these transactions and the previously announced merger with Hill International, GISI will have completed five strategic transactions in 2022

LOS ANGELES--(BUSINESS WIRE)-- Global Infrastructure Solutions Inc. (GISI) today announced agreements to acquire the Hong Kong and Singapore affiliates of global engineering firm Arcadis N.V., adding approximately 500 employees and doubling the size of GISI Asia operations. The acquisition of the Arcadis Hong Kong Design and Engineering (HK D&E) business closed simultaneously with the signing of the purchase agreement. The Singapore transaction is expected to close by October 31. Both all-cash transactions will augment GISI’s May merger with Asia-based JRP Group, a leading professional consultancy specializing in mechanical & electrical and building services engineering in the region.

“The Arcadis business in Singapore (legacy EC Harris and Davis Langdon & Seah) and Design & Engineering business in Hong Kong (legacy Freeman Fox and Hyder) have excellent reputations and client relationships in the infrastructure and building markets that span decades and will have an immediate positive impact on GISI’s presence in those markets,” said Tony Shum, GISI Co-Founder, Board member and Asia Chairman. “Leveraging the global industry expertise of our enterprise leadership team, we will immediately invest in People and Technology and transform these businesses to provide best-in-class project/construction/cost management and design & consulting services to our clients in the region.”

GISI Asia CEO Alex Kwan added, “Dave Hallam is coming over from Arcadis as Managing Director of the HK D&E business. Upon closing of the Singapore acquisition, Rene Hillig, Managing Director of the Singapore business, and his colleagues will join us from Arcadis. I welcome you all to the growing GISI family.”

All employees of the acquired businesses will be retained with continued access to professional career development opportunities and benefits, including ownership of GISI stock, subject to regulatory compliance. “Arcadis clients will also benefit as they will have the full suite of GISI’s construction, program/construction management, environmental, official development assistance, engineering & consulting, and other professional services to meet their needs,” Kwan said.

The transactions were developed and executed in partnership with Arcadis (EURONEXT: ARCAD), a global leader in sustainable design, engineering and consultancy solutions for natural and built assets.

Further announcements on rebranding and other details of these transactions will be made in due course

About GISI

GISI provides the resources its partner firms may require to gain the competitive advantage for success. Today, GISI is the largest privately owned construction manager in the commercial building, industrial and healthcare markets, and a leading project/construction manager in the environmental and public infrastructure sectors. Through the dedicated efforts of our more than 8,500 employees, we generate annual revenue of approximately US$11 billion, and enjoy project backlog of more than US$22 billion. Our employee shareholders are invested in contributing to, and benefitting from, our continued growth and strong results as we bring our unique value proposition to our clients and communities in more than 90 countries. Learn more at www.GISI.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221011006256/en/

Gary Sharpe

Sharpe Capital Communications

(301) 367-2935

gss@sharpecapitalcom.com

Source: Global Infrastructure Solutions Inc.

FAQ

What is the recent acquisition by GISI involving Arcadis?

GISI announced agreements to acquire Arcadis’s Hong Kong and Singapore businesses, which will add approximately 500 employees and double GISI's size in Asia.

What are the expected benefits of GISI's acquisition of Arcadis's businesses?

The acquisition is expected to strengthen GISI's position in infrastructure and building markets, enhancing client relationships and service offerings.

When is the Singapore acquisition by GISI expected to close?

The Singapore acquisition is expected to close by October 31.

How does this acquisition impact GISI's growth strategy?

This acquisition aligns with GISI's strategic objective of global diversification and represents its fifth strategic transaction in 2022.

What opportunities will Arcadis clients gain from this acquisition?

Arcadis clients will gain access to GISI's full suite of construction, program management, environmental, engineering, and consulting services.