Ambitious strategies in the East follow Arcadisā purchase of DLS
Three of the UKās largest consultants - Turner & Townsend, Sweett Group and Gleeds - are aiming to almost double the size of their Asian operations within three years, ŠŌ°ÉµēĢØ can reveal.
The news comes a week after Arcadis announced expansion in the region with the acquisition of the former Asia division of Davis Langdon, Ā£79m-turnover Davis Langdon & Seah (DLS).
Turner & Townsendās Ā£13m-turnover Asia division is targeting 25-30% revenue growth a year over at least the āmedium termā, its Asia managing director Duncan Stone said.
If the division meets its growth targets, it will double its turnover to at least Ā£25m within three years.
Stone said T&Tās rate of growth in Asia could āaccelerate if we are successful with mergers and acquisitionsā and said the firm was in a āstrong commercial positionā to secure deals.
He added the firm was looking particularly at M&A options in India, China and north-east Asia generally, areas where the firm āwants to grow very quicklyā.
Sweett Group is planning to almost double income from its combined Asia and Australasia division from Ā£25m to Ā£40m within three years.
Sweett chief executive Dean Webster said the expansion would be achieved through a combination of organic growth and acquisitions.
Sweett sees particular growth opportunities for its Malaysia, Vietnam and Thailand businesses and is also exploring how to establish a presence in South Korea, Indonesia and Cambodia.
Gleeds chief executive Richard Steer said there was āalmost exponentialā potential for the firm in Asia, which is aiming to double its Ā£6m-turnover Asian business within three years.
Arcadis, Aecom and Rider Levett Bucknall also said they expected their Asian businesses to grow, but did not disclose targets.
UK QS Faithful + Gould said it was aiming to grow its Asian division by 20% in the next three to four years, but declined to disclose turnover figures.
Webster said consultants could not afford to delay if they wanted to enter the Asian market.
He said: āItās a maturing market [ā¦] itās going to be quite difficult for people who arenāt established to enter that market now.ā
Analysts this week valued Arcadisā DLS takeover at Ā£90m-100m, based on the published increase in the Dutch engineerās debt following the transaction.
Arcadis would not comment on this figure.
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TURNOVER TARGETS
Asian turnover today
T&T: Ā£13m
Sweett*: Ā£25m
Gleeds: Ā£6m
Asian turnover target in three years
T&T: Ā£25m
Sweett*: Ā£40m
Gleeds: Ā£12m
* Figures are for Sweett Groupās combined Asia and Australasia division
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