Acquisition

RNS Number : 7284N

Balfour Beatty PLC

23 February 2009

 



23 February 2009

BALFOUR BEATTY ACQUIRES CHARLOTTE-BASED CONSTRUCTION COMPANY,

RT DOOLEY, FOR $40 MILLION

Balfour Beatty, the international engineering, construction, services and investment group, announces today that it has acquired RT Dooley Construction, a family-owned construction firm based in Charlotte, North Carolina, for a cash consideration of approximately $40 million.  

RT Dooley specialises in corporate headquarters, corporate interiors/fit-out and 'mission critical' work such as data centres and call centres. Its activities are complementary to Balfour Beatty Construction US' South East division, which is also based in Charlotte.

Commenting on the acquisition, Balfour Beatty Chief Executive, Ian Tyler, said:

'RT Dooley is a high-quality business with a leading position in its markets. As customers seek an expanded range of services from the same supplier, combining our capabilities with RT Dooley enhances our ability to meet customers' needs.' 

RT Dooley's customers include Bank of America, Wachovia, Duke Energy and Lowes.  It had 2008 revenues of c$300 million, operating profit of c$7 million and net cash of c$10 million.  

RT Dooley's business model relies on qualification-based tendering, where the final cost is agreed with the client after design is substantially complete and prices and contracts have been agreed with sub-contractors. This business model is the same model that is successfully used by Balfour Beatty Construction US. 

Opportunities for growth include increasing market share with existing customers and expanding RT Dooley's reach into geographic markets where Balfour Beatty Construction US already has a presence.

The management, including David and Bob Dooley, will remain with the business in their current leadership roles.

-ENDS-

Analyst/media enquiries:    

Duncan Murray

Tel: [phone]

www.balfourbeatty.com

Notes to Editors:

1.

Balfour Beatty is a world-class engineering, construction, services and investment business, well-positioned in infrastructure markets which offer significant long-term growth. We work in partnership with sophisticated customers who value the highest levels of quality, safety and technical expertise. Our skills are applied in appropriate combinations to meet individual customer needs.

2.

Balfour Beatty's US business comprises leading market positions in military privatisation housing projects; professional and technical service provision to the major building market; building construction with leading positions in Florida, Texas, Washington DC and North Carolina markets; and the California and Texas civil engineering markets. It is also a nationwide rail contractor, serving the mass transit, Class 1 and private service markets.

 

END

 

 

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