BDP sold to Japanese engineering consultancy giant for £102 million

In a very significant move for the sector, leading UK-based international practice of architects, designers and engineers, BDP, has been sold to the Japanese  civil engineering consultancy giant Nippon Koei for £102m.

Nippon Koei, which has an annual turnover of £430 million and employs 3,200 people, will acquire 100 percent of BDP’s shares in a move which will create a new integrated design group with significant international reach. BDP, which has its headquarters in Manchester and employs more than 950 people and a turnover of £81million, will become a wholly-owned subsidiary of Nippon Koei, following the unanimous agreement by BDP’s board of directors to the sale.

The acquisition will see Nippon Koei take advantage of BDP’s significant BIM knowledge and allow the UK practice to expand its business into Japan. BDP made a £2.1 million profit in the 12 months to the end of December 2014, a 125 per cent increase on the previous 18 months. Staff number rose by 100 to 832 over the same period, according to the firm’s financial accounts and the improved performance allowed a £1.75 million dividend payment to shareholders during 2014. 

While both companies will retain their existing operations and brand identity, their complementary geographical footprints and technical skills mean that they will work collaboratively across international markets.

Originally established in 1946 as Japan’s first independent engineering consultancy, Nippon Koei’s main strength is in civil engineering although it offers a range of services to both Japanese and international clients. A significant proportion of Nippon Koei’s work is associated with infrastructure development funded by the Japanese Government and the World Bank in developing economies across Asia, South America and Africa. The company believes the purchase of BDP will enable them to expand into the rapidly expanding Asian commercial markets. 

John McManus, Chief Executive of BDP said: “The alliance with Nippon Koei heralds an exciting new era in BDP’s evolution. Although separated geographically, our two firms share common values and have highly complementary strengths in terms of professional offer and sector expertise. By uniting the two firms, we are creating an organisation which genuinely has the potential to be greater than the sum of its parts.”

Ryuichi Arimoto, President of Nippon Koei said: “As a leading architecture and design firm in the UK, BDP’s participation in the NK group will mark a great turning point in both of our histories. We will join forces on a global basis and provide solutions together to the many urban development problems from both an engineering and an architectural perspective. 

“The combination of NK’s 70 years of experience in social development and infrastructure together with BDP’s 55 years of experience in the education, health and commercial sectors, will create significant opportunity to add value for our clients and, I am confident, will lead the group to become the world’s leading integrated architecture, engineering and design company for the next generation. I also believe that the synergies between us will not only advantage our projects but will be of enormous benefit to our staff from a human resources perspective.”

The Nippon Koei Group’s long-term strategy has a target turnover of 140 billion yen and the firm’s integration with BDP will give create a technical consulting group with a turnover in excess of 100 billion yen. Currently around one-third of the Japanese firm’s turnover is in international markets but they plan to increase this to 50 percent by June 2021. Undoubtedly Nippon Koei sees the purchase of the UK’s second largest architectural practice as enabling them to do just that.