Philips Electronics Outsourcing Netherlands Facility Mgmt to Arcadis

ARNHEM, NETHERLANDS-Philips Electronics Nederland BV has signed a letter of intent to outsource part of its facility management in the Netherlands to Arcadis Aqumen, a new joint venture between publicly traded Arcadis and U.K.-based support services specialist Mowlem Aqumen.

Royal Philips Electronics is Europe’s largest electronics company and one of the biggest worldwide. According to the proposed four-year contract, Arcadis Aqumen will provide facility management services for 7 million sf (650,000 square meters) of building space.

Approximately 60 employees of Philips’ facility management operations will be transferred to Arcadis Aqumen once the final contract is signed. Additionally, as part of the agreement, Mowlem Aqumen will assign key staff from the U.K. to the Netherlands, and Arcadis will provide support with additional project management capabilities or technical expertise if so required.

Negotiations are expected to be completed this summer. Because of start-up costs, the contract will contribute to Arcadis’ earnings starting in 2004. Financial details were not disclosed.

Arcadis Aqumen was launched in September 2002. Arcadis Chairman Harrie Noy said the agreement with Philips will be the first major contract for the joint venture with Aqumen. The JV will initially operate in the Netherlands but plans to develop a significant pan-European presence over the next few years, said Noy.

“This breakthrough proves that outsourcing of the entire facility management portfolio is seen by companies as a way to save costs and realize quality advantages,” said Noy. “I am pleased that we were able to convince Philips of this added value. This provides a solid basis to also convince other potential clients.”