Arcadis to use debt financing for €232 million DPS Group acquisition

By Mary-Katherine Stinson

Lexington, Ky., Oct. 5 – Arcadis NV will use debt financing to fund its acquisition of DPS Group for a cash consideration of €232 million, or an enterprise value of around €295 million, which is expected to close before the end of 2022, according to a company press release.

The transaction will be fully debt financed, with the increase of the existing bridge loan facility for the acquisition of IBI Group. The company will use unused committed credit facilities and available cash, as well.

The press release stated that Arcadis is expected to be around the upper end of its targeted financial leverage range of 1.5x to 2.5x net debt to EBITDA by the end of 2022, and to de-lever in 2023 given its solid cash conversion track record and strong orderbook.

The company expects to receive an investment-grade credit rating, pro forma for the IBI and DPS transactions, from S&P Global Ratings.

Arcadis is an engineering and consultancy firm based in Amsterdam. Ireland-based DPS Group is a consultancy, engineering and construction management company for life sciences and semiconductor facilities.

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