ARCADIS creates leadership position in high level architecture and design through acquisition of Callison

AUGUST 21, 2014 --  ARCADIS (Euronext: ARCAD), the leading global natural and built asset design and consultancy firm, today announced that it intends to acquire Callison, a high level architectural and interior design consultancy with offices in the United States, China, Europe, Middle East and Mexico. With projects in over 25 countries Callison has annual revenues of US$167 million and more than 1,000 employees. 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. Callison applies its design approach called "User Driven Design" for their markets, including mixed use, retail, hospitality, healthcare and corporate interiors. Callison has a leading position in China, first entering that market in the early 1990s and opening their first office in Shanghai 9 years ago, successfully serving leading mixed use/commercial developers and major global retailers. 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, ARCADIS 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.

ARCADIS will finance this acquisition with an undisclosed amount of cash, drawing upon a new 5-year syndicated loan of US$120 million plus cash available from existing funds. The purchase price is consistent with multiples paid by ARCADIS on previous larger transactions and is based on a normalized EBITA of US$25 million. Blue Point Capital, Callison company management, and Callison principals have already agreed to the acquisition. 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. The transaction is expected to be immediately accretive to earnings per share. The acquisition-related costs of approximately €3.5 million are taken by ARCADIS in the second and third quarter of 2014. No further financial details were disclosed.

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 said, "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. We are known for our award winning design and excellent service and with the support of ARCADIS we will be able to deliver that quality on an even larger scale."

Lance Josal, CEO of RTKL said, "Callison is a well-respected industry peer, and home to great professionals, including several thought leaders in our industry. Callison has a long history in the profession, a strong culture of client service and shares the entrepreneurial drive that took both of our companies to the global stage. Having two industry leaders within ARCADIS provides a great opportunity to create something unique."

Information wires call:
At 8:30 am CET a wires call will be held with financial journalists to discuss the acquisition of Callison. During this call CEO Neil McArthur will be available to answer any questions about this acquisition. To participate in this call please dial +31 20 794 65 29 or 0800 024 96 26 (free phone Netherlands). International callers can use: +44 203 433 3527. The conference code is 8410197874#

Analyst webcast:
At 3:00 pm CET (9:00 am EDT) an analyst conference call / webcast will be held to discuss the acquisition of Callison, providing analysts / investors an opportunity to ask management questions. In addition to CEO Neil McArthur and CFO Renier Vree, this section will also be attended by John Jastrem, Chairman and CEO of Callison. To participate in this call please call one of the conference call phone numbers listed below a few minutes prior to the call. The conference code is: 6769622#.

Netherlands: +31(0)20-7132998 or 0800-0202577 (free phone)     
United Kingdom: +44(0)2034271915 or 0800-2794977 (free phone)
United States: +1-646-254-3364 or 1877-280-1254 (free phone)

The presentation related to this call is made available through a link on the Investors webpage of ARCADIS (http://ir.arcadis.com), where also an archived edition of the webcast will be available after the call. The call and the presentation will remain available on the ARCADIS website.

For more information, please contact Joost Slooten of ARCADIS at +31-202011083 or outside office hours at +31-627061880 or e-mail joost.slooten@arcadis.com.

About ARCADIS:
ARCADIS is the leading global natural and built asset design and consultancy firm working in partnership with our clients to deliver exceptional and sustainable outcomes through the application of design, consultancy, engineering, project and management services. ARCADIS differentiates through its talented and passionate people and its unique combination of capabilities covering the whole asset life cycle, its deep market sector insights and its ability to integrate health & safety and sustainability into the design and delivery of solutions across the globe. We are 22,000 people that generate €2.5 billion in revenues. We support UN-Habitat with knowledge and expertise to improve the quality of life in rapidly growing cities around the world. Please visit: www.arcadis.com