Amec disposes of its loss-making division

International project management group Amec yesterday announced the disposal of its loss-making project services division, which has offices in the North-East.

Construction and urban regeneration group Morgan Sindall plc is to acquire Amec's Design and Project Services Limited (DPS) business, which employs about 130 staff in Darlington.

London-based Morgan Sindall has also agreed to buy Amec's urban regeneration division, Amec Developments, and will pay £26m for the two businesses.

AMEC Chief Executive, Samir Brikho, said:
"This transaction is an excellent outcome for AMEC shareholders and an important milestone in delivering the strategy we presented in December 2006. Morgan Sindall not only provides a strategic fit for these businesses, but also a good new home, and strong prospects for their future. We wish them well.