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Hyder (defunct company)
Encyclopedia
Hyder was a Welsh
water, gas and electricity multi-utility
and infrastructure company created in 1996. It broke up in 2001 following a financial crisis.
of the electricity company SWALEC
for £872m. By 1998 it was Wales' largest independent private employer, and had quadrupled its turnover since 1990 (since 1996?).
Hyder owned Swalec and Swalec Gas brands and combined international, leisure, infrastructure and construction interests. Other subsidiary companies/brands of Hyder included Transis (operator of fleet vehicles), Laing Hyder (construction consortium), Hyder Investments, Celtic Infrastructure and Lusis (IT provider), several hotels in Wales, a small stake in cable company NTL and a 36% stake in Severoceske Vodovody a Kanalizace, the Czech
water company.
However, the debt taken on to finance the takeover of Swalec left the company vulnerable to external shocks. In these circumstances, the 1998 windfall profits tax
on the utilities introduced by the new Labour government, combined with the price cuts required by the 1999 Ofwat price review made Hyder's share price plummet (from a peak of 1048p in January 1998, to a low of 179p in March 2000).
for a reported £105m. The sale included the Swalec retail brand, whilst Hyder retained the Swalec electricity distribution business (i.e. running the electricity network) which was renamed Infralec
. The cash boost, however, was not enough to prevent a 30% fall in pre-tax profits, and following the final outcome of the unfavourable Ofwat price review, Hyder was vulnerable to a takeover.
Hyder was sold in August 2000 following a four month takeover
battle won by Western Power Distribution
(WPD) - a subsidiary of the US utility PPL
- who paid £565m in a sealed bid process.
Hyder's electricity distribution subsidiary Infralec
was rebranded as part of Western Power Distribution
.
The water subsidiary, Welsh Water, was sold by WPD to a company limited by guarantee
(Glas Cymru), while remaining subsidiaries in areas such as gas and engineering consultancy were sold off by management buy-out or other means, including Hyder Consulting
and Hyder Business Services (HBS). Hyder's IT organisation was acquired by Logica in 2001.
Chief Executive Graham Hawker, went on to run the Welsh Development Agency
.
Hyder's name and logo used to be prominent in the seating at Cardiff's Millennium Stadium
. Hyder still remains as a brand used by Hyder Consulting
. The Hyder logo is also still used by HBS http://www.hbs.uk.com/.
Wales
Wales is a country that is part of the United Kingdom and the island of Great Britain, bordered by England to its east and the Atlantic Ocean and Irish Sea to its west. It has a population of three million, and a total area of 20,779 km²...
water, gas and electricity multi-utility
Multi-utility
Multi-utility relates to companies offering a wide range of services and/or products. In the business market, this type of service provision usually relates to energy, environmental services, waste issues, infrastructure and/or telecom services...
and infrastructure company created in 1996. It broke up in 2001 following a financial crisis.
History
Hyder PLC was created in 1996 following the takeover by Welsh WaterWelsh Water
Dŵr Cymru Welsh Water is a company which supplies drinking water and wastewater services to most of Wales and parts of western England.It is regulated under the Water Industry Act 1991.-History:...
of the electricity company SWALEC
SWALEC
SWALEC was an electricity supply and distribution company which was bought out in 1996 for £872m following the de-regulation of the electricity supply industry in the UK....
for £872m. By 1998 it was Wales' largest independent private employer, and had quadrupled its turnover since 1990 (since 1996?).
Hyder owned Swalec and Swalec Gas brands and combined international, leisure, infrastructure and construction interests. Other subsidiary companies/brands of Hyder included Transis (operator of fleet vehicles), Laing Hyder (construction consortium), Hyder Investments, Celtic Infrastructure and Lusis (IT provider), several hotels in Wales, a small stake in cable company NTL and a 36% stake in Severoceske Vodovody a Kanalizace, the Czech
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
water company.
However, the debt taken on to finance the takeover of Swalec left the company vulnerable to external shocks. In these circumstances, the 1998 windfall profits tax
Windfall profits tax
A windfall profits tax is a higher tax rate on profits that ensue from a sudden windfall gain to a particular company or industry.-United Kingdom:In the United Kingdom, the Windfall Tax was a tax levied on privatised utility companies.-United States:...
on the utilities introduced by the new Labour government, combined with the price cuts required by the 1999 Ofwat price review made Hyder's share price plummet (from a peak of 1048p in January 1998, to a low of 179p in March 2000).
The sale and break-up of Hyder
In February 2000, the retail electricity and gas business under the Swalec brand was sold to British EnergyBritish Energy
British Energy was the UK's largest electricity generation company by volume, before being taken over by Électricité de France in 2009. British Energy operated eight former UK state-owned nuclear power stations and one coal fired power station....
for a reported £105m. The sale included the Swalec retail brand, whilst Hyder retained the Swalec electricity distribution business (i.e. running the electricity network) which was renamed Infralec
Infralec
Infralec was the electricity distribution business owned by Hyder. Infralec was established in February 2000 to operate the electricity distribution network previously operated under the SWALEC brand before Swalec was sold to British Energy....
. The cash boost, however, was not enough to prevent a 30% fall in pre-tax profits, and following the final outcome of the unfavourable Ofwat price review, Hyder was vulnerable to a takeover.
Hyder was sold in August 2000 following a four month takeover
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
battle won by Western Power Distribution
Western Power Distribution
Western Power Distribution is the trading identity of four electricity distribution companies - WPD South West , WPD South Wales and WPD Midlands...
(WPD) - a subsidiary of the US utility PPL
PPL (utility)
PPL, formerly known as PP&L or Pennsylvania Power and Light, is an energy company headquartered in Allentown, Pennsylvania, USA. It currently controls about 19,000 megawatts of electrical generating capacity in the United States, primarily in Pennsylvania and Montana, and delivers electricity to...
- who paid £565m in a sealed bid process.
Hyder's electricity distribution subsidiary Infralec
Infralec
Infralec was the electricity distribution business owned by Hyder. Infralec was established in February 2000 to operate the electricity distribution network previously operated under the SWALEC brand before Swalec was sold to British Energy....
was rebranded as part of Western Power Distribution
Western Power Distribution
Western Power Distribution is the trading identity of four electricity distribution companies - WPD South West , WPD South Wales and WPD Midlands...
.
The water subsidiary, Welsh Water, was sold by WPD to a company limited by guarantee
Company limited by guarantee
In British and Irish company law, a private company limited by guarantee is an alternative type of corporation used primarily for non-profit organisations that require legal personality. A guarantee company does not usually have a share capital or shareholders, but instead has members who act as...
(Glas Cymru), while remaining subsidiaries in areas such as gas and engineering consultancy were sold off by management buy-out or other means, including Hyder Consulting
Hyder Consulting
Hyder Consulting is a multi-national advisory and design consultancy with particular specialisation in the transport, property, utilities and environmental sectors. The firm employs approximately 4,200 people across the UK, Europe, Germany, Middle East, Asia and Australia and has been listed on the...
and Hyder Business Services (HBS). Hyder's IT organisation was acquired by Logica in 2001.
Chief Executive Graham Hawker, went on to run the Welsh Development Agency
Welsh Development Agency
The Welsh Development Agency was a QUANGO and later an Assembly Sponsored Public Body established in 1976 to encourage business development and investment in Wales, to clear derelict land and to encourage growth of local businesses...
.
Name and logo
The name Hyder is the Welsh word for 'Confidence'; however the bosses of the company tried to encourage staff and even customers to pronounce the name like "rider". http://news.bbc.co.uk/1/hi/uk/1108440.stm The logo is said to represent the infinity symbol and a bridge, to represent the company's strong interest in infrastructure.Hyder's name and logo used to be prominent in the seating at Cardiff's Millennium Stadium
Millennium Stadium
The Millennium Stadium is the national stadium of Wales, located in the capital, Cardiff. It is the home of the Wales national rugby union team and also frequently stages games of the Wales national football team, but is also host to many other large scale events, such as the Super Special Stage...
. Hyder still remains as a brand used by Hyder Consulting
Hyder Consulting
Hyder Consulting is a multi-national advisory and design consultancy with particular specialisation in the transport, property, utilities and environmental sectors. The firm employs approximately 4,200 people across the UK, Europe, Germany, Middle East, Asia and Australia and has been listed on the...
. The Hyder logo is also still used by HBS http://www.hbs.uk.com/.