Waterman engineers Aspen deal

WATERMAN Partnership is paying up to £8.5m in cash and shares for fellow consulting engineer Aspen and hopes to raise about £4.65m with a placing and open offer of 4.6m shares at 120p each.

With Aspen, Waterman is buying into outsourcing, which it sees as a new stream of stable, higher-margin business, opening up fresh opportunities in the public sector.

Aspen has net assets of £1.9m and profit before tax for the year to 31 March of £881,000. The engineering consulting activities of the two groups also make a good fit, said Waterman managing director Bob Campbell. Waterman shares were 2 1/2p off at 130p.