Balfour Beatty PLC BALFOUR BEATTY REACHES AGREEMENT TO SELL HEERY INT (7807S)
05 October 2017 - 5:00PM
UK Regulatory
TIDMBBY
RNS Number : 7807S
Balfour Beatty PLC
05 October 2017
News Release
05 October 2017
BALFOUR BEATTY REACHES AGREEMENT TO SELL ITS PROFESSIONAL
SERVICES BUSINESS,
HEERY INTERNATIONAL
Balfour Beatty, the international infrastructure group, today
announces that it has reached an agreement with a subsidiary of
CBRE Group, Inc. to sell Heery International (Heery), its
full-service US engineering and programme management, architecture
and interior design firm.
The transaction, which is subject to certain contractual
consents, is expected to complete before year end for a total cash
consideration of $57 million (c.GBP42 million), subject to working
capital and debt adjustments.
For the year ended 31 December 2016, Heery's gross assets were
GBP78.2 million, net assets were GBP21.5 million and profit before
tax was GBP2.4 million. This transaction will release funds to
Balfour Beatty to be used in the normal course of business.
Balfour Beatty acquired a 50% interest in Heery in 1986, which
it increased to 100% in 1990. In certain US markets, however,
acting as Programme Manager on a contract precludes a company from
bidding as General Contractor due to perceived conflicts of
interest. The sale of Heery removes this constraint from the
Group's US Buildings operation, while enabling it to partner with
Heery on a wide range of potential projects going forward.
Leo Quinn, Group Chief Executive, said: "We continue to focus
and strengthen the Group in our chosen markets. This transaction is
another example of maximising shareholder value at the appropriate
time and value, while improving our strategic position. We look
forward to continuing our strong working relationship with
CBRE."
ENDS
Analyst/investor enquiries:
Angus Barry
Tel. +44 (0)20 7216 6824
angus.barry@balfourbeatty.com
Media enquiries:
Louise McCulloch
Tel. +44 (0)20 7216 6846
louise.mcculloch@balfourbeatty.com
Notes to editors:
-- Balfour Beatty (www.balfourbeatty.com) is a leading
international infrastructure group. With 30,000 employees, we
provide innovative and efficient infrastructure that underpins our
daily lives, supports communities and enables economic growth. We
finance, develop, build and maintain complex infrastructure such as
transportation, power and utility systems, social and commercial
buildings.
-- Our main geographies are the UK, US and the Far East. Over
the last 100 years we have created iconic buildings and
infrastructure all over the world including the London Olympics'
Aquatic Centre, Hong Kong's first Zero Carbon building, the
National Museum of the Marine Corps in the US and the Channel
Tunnel Rail Link.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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